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Will Car Accident Insurance Rates Increase After An Accident?


The greatest horror a driver or vehicle owner could ever have is to be involved in an accident. Accidents range from head-to-head collisions to slight nudges; however, all of them share one thing, a price to be paid. When a driver gets into an accident his first thought is often, “How much will this cost?” Since accidents are inevitable, an intelligent car owner would want to prepare for this type of situation, and having an insurance policy for her/his car is the perfect way to do that.

Suppose the accident has already happened. The insurance company has already paid for damages, and they even paid for the car’s total repair. What a relief right? Wrong. The problem does not end there. After spending a lot of money taking care of the damage, insurance companies, most of the time, increase car accident insurance rates. How is it likely to increase? It depends on several factors:

•    Severity of the accident.

•    Degree of fault, unless authorities has put you in a “no-fault” state.

•    Type of insurance claim filed by either party.

•    Type of violation, if given a ticket.

Like any insurance price, the amount of increase, if any, for car accident insurance rates varies by company. Research shows that this increase can be high. Drivers who were given additional tickets saw their rates go up from $157 to $248 a year, while those who filed claims saw increases from $302 to $458 yearly.

When will prices go up? Car accident insurance rates increase typically at renewal time after the accident or violation. However, if you did not inform your insurance company about the accident and no one made a claim, it would probably take a while for them to find out. For sure they will not be happy to discover an accident, ticket, or violation you failed to report.

Although most of time insurance companies increase rates, there is always hope. There is a chance that the company would grant its client with an “accident forgiveness” feature, given that he meets the conditions. A driver’s car accident insurance rates may not increase if he was proven to be at fault in a minor accident. However, there are severe consequences if he was involved in a major accident and was driving under the influence of liquor or drugs.

Accidents do occur and oftentimes, in situations where they are least expected. What each driver needs to do is to prepare for the worst, and not be left dumb-founded when a sudden problem arises.