Do Insurance Rates Go Up After An Auto Accident That Is Not Your Fault?

Do you consider yourself a cautious driver? Wherever you are, you make sure that you follow the state laws about driving, you take the time to parallel park, and you always avoid distractions when you’re behind the wheel. You’re too careful that even your friends started to make funny remarks whenever they’re riding in your vehicle and you’re the one driving. But you don’t mind. You’re doing all of these precautions to ensure that you’re safe, your passengers are safe, and your vehicle is in excellent condition. But no matter how much you try to be careful, accidents will happen. Some accidents will happen when your car is merely parked on the street, or you’re just driving steadily in your lane. And while these can imply legalities especially when you’ve incurred personal injuries because of a car accident, do you know if your insurance rates will go up after an auto accident that’s not your fault? If you just got your car insurance or if you’ve never thought about these things in the past, most probably, you don’t know the answer to this question. No worries because this article will help you with that.


What Will Happen To Your Insurance Rates After An Auto Accident That’s Not Your Fault?

There are different reasons on why your insurance rates will increase. If you want to know the details of your insurance premiums, of course, you would want to know if an auto accident that’s not your fault is one of these reasons. To avoid any confusion with this situation, these points might be helpful for you:


  • If you’re involved in an accident once, and it’s clearly not your fault (e.g., debris fell on your car while it was parked on the street), your insurance rates may not rise immediately. But if you’ve been involved in multiple accidents, even if all of these were not your fault, your auto insurer may not renew your policy or increase your premiums.


  • The number of accidents you’re involved with could make your insurance company see you as a higher risk even if all of the accidents were not your fault. Even if your insurance company determines you are a good driver, but you’re living in a high-risk area, your rates may eventually increase.


  • There are many states which have insurance laws and regulations to keep auto insurance companies from surcharging (increasing your base rate) if you’re not at fault in an auto accident or if it’s a comprehensive claim. Both of these types of claims are rarely your fault so it’ll not have any effect on your insurance rates.


  • If you’re still unsure of what applies to your insurance company, contact them and inquire which type of claims would affect your rates or the renewal of the policy. Don’t wait for an accident to happen before doing all of these things. Talk to them immediately so you’ll know what to expect, and you’ll know how to make adjustments to your finances accordingly.


  • Contacting the insurance regulator in your locality can be helpful too. You’ll be able to educate yourself with useful information on your state’s insurance laws about surcharges and what are the possible factors on why these could increase or decrease.


  • If your rates do increase the first time you’re involved in an auto accident that’s not your fault, shop around with different insurance companies within your area first. Compare car insurance rates as you may find insurance companies which do not give the same judgement on accidents the same way and thus, you will save money.


So What Are The Factors Affecting Your Car Insurance Rates?

You are now more aware of the factors involved with your car insurance rates whenever you’re involved in an auto accident that’s not your fault. Naturally, you might be curious about why your car insurance rates increase. Different insurance companies have different computations on how they come up with your car insurance rates. Some of the factors that go into that computation are:

  • How often and how far you driver;
  • What you’re driving;
  • Where you live;
  • Your age, sex, and marital status;
  • Your credit history;
  • Your driving record; and
  • Your policy and deductibles.

It’s essential to know the factors affecting your car insurance rates because once you do, you’ll know what to avoid and what to expect. You won’t be shocked if your insurance company will suddenly require you to pay a higher amount than the usual.


As a conclusion

It’s necessary and required for you to get car insurance coverage. Once you have a policy, the stress you’re feeling whenever you’re involved in an auto accident will be lessened since another party will cover the bills for the repairs – and that’s a tremendous help, especially if you don’t have enough funds. But as an insured, you should also take the time to know what are the factors involved in your car insurance rates. You’re paying with your hard-earned money, so it’s just right that you know what goes into your car insurance computation. Yes, knowing all of these things can be taxing, but just think of it this way – your budget will be better prepared, and you will know where your money is going. Don’t pay just because your insurance company demands you to do so, you should know how your premiums are calculated which can help you in the long run. Click here for an auto accident lawyer to help you if you’ve had an issue after your crash.


About the Author: Vicki Haskett

Vicki is a law writing enthusiast who’s had over 25 years of experience in her field. She enjoys sharing her experiences with those who want to learn more about the legal world. In her spare time she spends quality time with her family and friends.


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