A car insurance policy is essential to protect you and your vehicle in the event of accidents and collisions. However, sometimes, filing an accident claim may increase your car insurance premiums. Let us discuss what kind of accidents will impact your car insurance rate.
When Do Car Insurance Rates Increase After an Accident?
Your car insurance rates will increase if you file a claim for accidents that are substantially at fault (caused by you). The term “substantially at fault” is used to define more than half of the fault (that is, 51% or more).
For example, if another driver collides with your car from the rear, ending up being 100% at fault for the incident, your auto insurance rates will not rise, as you have no fault. However, if the other driver’s insurance provider finds that your car, too, sustains physical damage like broken brake lights, you will also be declared at fault for the collision. If you are responsible for the collision by more than 50%, your rates will increase after the incident.
How Much Car Insurance Rates Increase for Those Who Were Substantially at Fault?
If you are found substantially at fault for an accident, your insurance provider may consider you risky and increase your premiums as a result. However, how much your car insurance rates increase depends on various factors, including:
- Your driving history
- The type of claim you have filed (whether a bodily injury claim or property damage claim)
- The claim amount (whether less or more)
Besides, some other factors can also influence your car insurance premiums, which may include:
- Credit score
- Continuity of coverage
- Marital status
- Vehicle specifics (make and model)
- Miles driven per year
How Long Will an At-Fault Accident Impact My Car Insurance Rates?
After an at-fault accident, your car insurance premiums may remain higher for three to five years. This is why it is important to drive safely, adhering to all the road regulations and conditions.
Does a No-Fault Accident Impact My Car Insurance?
Yes, it may, depending on how often you are involved in accidents. Involving in three no-fault collisions in three years can lead to coverage termination.
The Significance of Car Insurance
Raising insurance costs is often the cause for concern for those who are seeking compensation in the event of accidents and collisions. However, if you are not at fault, you don’t have to worry about the rising premiums.
Despite the rising rates, car insurance is inevitable. With a car insurance policy in place, you will be covered against your liabilities associated with at-fault accidents involving your vehicle and accidents that are caused by drivers without sufficient liability insurance. So you can drive with peace of mind.
The policy also covers your vehicle against damage or loss caused by theft, vandalism, fire, and natural disasters. So, don’t think much about the rates, unless you are involved in frequent accidents.
Protect Your Car from Accidents with Hoffman Brown Company
At Hoffman Brown Company, we offer a best-in-class car insurance policy with customized coverage options, so you can stay covered at all times. Contact us today to get the right policy that protects your car against every risk.