Justice Demands Diligence

Does a car accident increase your insurance rate?

On Behalf of | Apr 18, 2024 | Insurance

The aftermath of a car accident often includes the insurance company increasing the driver’s premium. When a driver gets into an accident, it could categorize them as a higher risk in the eyes of insurers.

Insurance companies adjust their rates to balance the risk they assume by covering drivers. Insurance rate increases are not arbitrary but rather based on several factors that can vary widely from case to case. Understanding these can help mitigate the legal and monetary impact of such accidents.

The accident’s severity

The more serious an accident is, the higher the amount insurance companies spend on claims. The impact of an accident on premiums highly depends on the severity of the damage in a car wreck. Minor collisions like fender benders typically result in smaller increases than crashes that involve injuries and significant property damage.

Driving history

A driver’s record is crucial in how insurance companies view their risk level. Drivers with an extensive history of at-fault accidents or traffic violations can expect a substantial increase in their premium rates. On the other hand, insurers are typically more lenient when adjusting rates to drivers with a safe driving history.

Insurance policies and coverage programs

The driver’s insurance is one of the leading factors affecting car insurance prices. Some insurers offer accident forgiveness programs, which can prevent rates from going up after an accident. This underscores the significance of clearly understanding policies and coverage types available before choosing one.

Experiencing an accident is distressing enough, and having to face insurance premium increases can add insult to injury. Struggling with insurance claims or premium increases after a car accident is not a rare occurrence. However, by knowing how these increases work and having the right legal guidance, drivers can better manage their insurance costs.