Will A Car Accident Affect My Insurance Rates?

It seems as though the majority of individuals understand that a car accident can increase their insurance rates. This is one key factor highlighted across most insurance advertising. “We won’t raise your rates because of an accident” they claim. 

We wish this could be so cut and dry, however, the fact of the matter is that each and every accident is different and there are no guarantees when it comes to insurance. All insurance companies and policies are different as well.  

Let’s take a deeper dive into the details and components that may indicate changes to your insurance rates. 

How serious was the accident?

An accident that results in totaled vehicles and serious injuries is quite different than a minor fender bender. The costs associated with the accident in question will have a lot to do with the way that the insurance companies handle the claim. If you have a clean driving record and have no history of any other accidents, a minor collision may not have a drastic effect on your insurance rates. 

Who was at fault?

Being found at-fault or not at-fault will also play into how the insurance company views the costs and claims of the accident. With every accident being so different, it is important to speak with your insurance company directly to determine how the accident will affect your rates. Keep in mind that insurance companies are in the business of making money and it’s important to stand your ground. Please speak to an attorney as soon as possible. 

How long will it take for the accident to be removed from my driving record?

If the accident has been reviewed by the insurance companies and they decide that your rate must be raised, you may be wondering how long you can expect to experience the increased payments. 

This will also depend on the details of the accident and your specific insurance company policies. 

Read More: How Are Car Accident Claims Resolved?

How else do accidents affect insurance?

Depending on your age and previous driving record, you may have been offered a discounted rate for having a clean driving record. Unfortunately, it is common to have this taken away in the event of an accident. This will, in turn, raise your rates as well as any additional increase. 

To prevent a raise in insurance rates after an accident, ask your insurance company if they offer accident forgiveness. This won’t help after an accident, but in planning for the future, it might be a good idea to shop around for insurance plans that offer accident forgiveness. This forgives any accident you may be involved in, at-fault or not, preventing your rates from being raised.

Still unsure whether your rates should’ve been raised? 

We always recommend that you speak with an attorney as soon as possible after an accident. We can help you deal with the insurance companies and save you the headache of working things out for yourself. Insurance companies do not have your best interest in mind. 

Call us today to see how we can help you.