How much does car insurance go up after an accident? Being in a car accident, whether you caused that accident or someone else did, could lead to an increase in your rates.
Rates depend on the severity of the accident, the cause, and if you have been in other accidents before. Talk to a Houston car accident lawyer today.
Factors That Impact Car Insurance Rates
Car insurance companies determine how much they charge for coverage based on the amount of risk a person presents to the company. A person who is at high risk is most likely to file a claim and, therefore, is likely to cost the company more money than someone who is at low risk. Lower rates typically follow low risk.
Each car insurance company sets its rates and factors to determine the cost of that insurance when determining how much car insurance goes up after an accident.
They have their own algorithms to assign rates, again based on risk factors the company deems most important. More so, car insurance companies can change their rates as often as they want to, as consumers have a choice of selecting one company or policy for another.
Car insurance rates change based on market conditions and competition, where you live, the type of car you own, and your driving record. Accidents are a trigger for higher rates, no matter if you caused or were hurt in one, to some degree.
The bottom line is that there is no specific amount that car insurance companies raise rates after an accident occurs, so be sure to read our reviews.
Minor Car Accidents and Car Insurance Rate Increase
Some insurance companies have policies that limit rate increases when an accident is minor, often meaning the accident caused less than $1,000 worth of damage and did not result in any significant medical injuries.
For example, some insurance companies have accident forgiveness policies that will not raise your rates if you are in a single, minor accident over the course of a specific period of time. That does not always apply to situations such as:
- You have a serious accident with medical losses and vehicle loss or significant damage
- The accident was your fault because of factors like distracted driving or reckless behavior behind the wheel
- You have had more than one accident in recent years
- Your driving history is peppered with moving violations such as speeding
- You are facing criminal charges while driving
If your case is truly minor, meaning you do not have significant injury or loss, you should not be afraid to file an insurance claim for your losses. However, it is important to be thorough about your losses and to ensure you are not limiting your rights.
With the help of an attorney, you could minimize the risk of not getting fair compensation in your situation and find out how much car insurance goes up after an accident.
What You Could Expect if Your Rates Increase
In situations where you have a serious accident, and it is your fault, you can expect the insurance company to assign a higher risk rating to you. That means you may pay more for your car insurance in the future, depending on a variety of factors. It is always a good idea to work with your insurance company to get insight into what could happen.
Some insurance companies can raise rates by 10% or more, depending on the situation, when determining how much car insurance goes up after an accident. Others will not raise your costs at all, especially if you have an accident-forgiveness policy. The uncertainty can be worrisome, but keep in mind that you pay for insurance, which can help you cover your needs in an emergency.
The insurance company itself may not always be upfront with you about the benefits of filing a claim because when you do, it costs them money. They may make statements to warn you of increases in rates in limited situations.
The key here is to get a third party’s opinion on what your rights are, what benefit filing a claim can offer, and what steps you should take to avoid increasing rates. You can learn more about it in our FAQs.
What Happens If You File a Claim Against Another Person’s Policy
There are many situations in which filing a car insurance claim is critically important to your financial well-being. If someone else causes an injury to you, and you have medical bills, physical losses, and cannot go back to work, hiring an attorney and then filing a claim against that party makes sense.
Your attorney can help you determine how much your claim may be worth, as well as if it is in your best interest to file a car insurance claim or file a lawsuit against the at-fault party.
Some insurance companies will consider this when determining your car insurance rates for the coming year. Others do not. However, the increase in insurance rates you might have does not make up for the significant financial loss you already have from the other party’s reckless behavior that cost you your well-being.
If you are unsure what to do after a car accident, no matter who is at fault, take a few minutes now to contact a car accident attorney to discuss your case openly with a legal team.
A free consultation is one of the best ways for you to get the legal insights you need to know how to file a claim, what steps to take when you do, and how much compensation is owed to you. Your attorney can also offer insight into what type of financial consequences you may face as a result of your car accident and explain how much car insurance goes up after an accident.
Set Up a Time to Discuss Your Case with Our Car Accident Attorney
At Lowe Law, we are passionate about helping people recover from the damages and losses they have experienced in even the worst situations.
By contacting our legal team now, we can offer you a free consultation to discuss your accident and find out if you should file a claim with your own insurance company or with the other party’s coverage. Discuss your case with us now so you can learn how much car insurance goes up after an accident.
