Why do premiums sometimes increase even at no fault accidents?


It is common knowledge that if one is prone to accidents caused by traffic violations or simply reckless driving; it is also likely that one has to pay higher premiums. But when a driver is involved in a no fault accident, it is actually puzzling to see why, at certain occasions, premiums still increase. Imagine a scenario wherein you slow down at seeing the yellow light, while the vehicle at the back speeds up and rear ended you. And then at the end of the day, the insurance company demands higher premiums to be paid. Is it your fault that you are unlucky in that day?

As a matter of fact, safe drivers with clean, spotless records are more likely to have lower premiums, naturally because they are treated as low risk drivers. It is therefore very unlikely for your premiums to increase when you are not often involved in accidents. And even when you are involved in a no fault accident, premiums are still likely to stay put. However, there are some factors to be considered, especially when you already have a history of traffic violations or accidents.

Usually, car insurance companies do not only see accidents in a manner of who is at fault and who is not. That is the job of the authorities, wherein the one who is given the ticket is the one at fault. What insurance companies take into consideration is the overall propensity and likeliness for a driver to be involved in such accidents. In this case, the number of past traffic violations or the propensity to be involved in such situations is involved. One thing is that, when a driver has a history of traffic violations that is related to the no fault accidents, the insurers still increase premium rates, which is actually like penalizing you for past violations. Another thing is that, even though you are involved in a no fault accident, if you have already been involved in past no fault accidents, it still increases your overall propensity to be involved in such accidents, giving insurers enough reason to raise your premium. It is important to note that base premiums actually rests upon risk factors; the higher the risk factor, the higher the insurance premium. In fact, the number of accidents, may it be at fault or no fault, is still directly related to the increase of your premium.

In case of problems, it is best to contact your insurance agents. But always put in mind that if you have a history of accidents, most probably, your premium will increase.