You do risk having your car insurance rates increase after an accident. Depending on whether you are found at fault or not determines if you will have to pay more for car insurance. Some states have specific laws regarding insurance rates, which clearly specify what actions insurance companies can take regarding rates. Keep reading to find out more information about a possible increased insurance rate after a car crash. A personal injury attorney can tell you if your rates can be legally increased or not.
Why Might My Car Insurance Rates Increase
If you do see an increase in your car insurance rates after an accident through no fault of your own, there are several factors to consider before you conclude it is due to a collision. Car insurance rates may increase due to:
- An Increased Rate of Accidents-When there is a jump in the number of vehicle accidents that occur in your zip code or municipality, then you may see your insurance costs rise. An increase in accidents means higher payouts for insurance companies, and they may choose to pass the extra costs on to the customer.
- Weather Conditions-If you reside in an area with certain weather conditions, your insurance company may choose to raise your rates because of the possible danger of your vehicle being damaged due to extreme conditions. It is common knowledge that poor weather conditions present an inherent danger to drivers and their cars. Insurance companies will ask for higher premiums if your area is well-known for weather related accidents.
- Uninsured Drivers- The higher the rate of uninsured drivers, the higher the rate of insurance costs in that area. Uninsured drivers can impact your insurance premium the same way a vehicle accident does. When your insurance has to pay out higher payments because of irresponsible drivers, customers usually have to cover the higher costs.
- More People, Higher Premiums-The large increase in population has skyrocketed vehicle insurance costs for drivers. If an insurance company sees an increase in the number of vehicles on the road, they are inclined to increase costs to cover the higher potential of personal injury accidents. When it is more dangerous to drive, it costs more to be insured.
- A Change in Your Credit Score-Insurance companies do keep an eye on your credit score. If you have a noticeable drop, this could mean you will see a sudden increase in your insurance premiums. Your ability to pay your bills on time is an important factor for insurance companies and does help them determine who should be insured and at what cost.
Comprehensive Claims Can Also Increase Your Rates
If someone files a comprehensive claim with your insurance company, such as a claim of theft, chipped/cracked glass, vandalism, or fire, you may experience an increase in your rates. Comprehensive claims can stay on your record, and you could be considered as a higher risk customer. For example, if you’ve hit an animal on the road before, insurance companies may assume you will do it again and charge you a higher premium.
What If I Am At Fault in a Car Accident?
If you have been the cause of a vehicle accident, you could see an increase in your insurance rates. You are responsible for any damage or personal injuries the other party may have due to your negligence. The insurance company must pay out a settlement, and it could be quite large, depending on the extent of the damage. Being irresponsible while driving is frowned upon by insurance companies, and they may increase your rates or drop your coverage altogether.
How Can An Attorney Help Me
If you are involved in a car accident, it is important to speak with The Jones Firm who understands the law. If you are a victim, you can ask about your rights to receive compensation from the at-fault party. If you are the person liable for the accident, you can work with an attorney to try and minimize the financial damage an accident can cause, including an increase in your insurance rates. Contact The Jones Firm’s personal injury attorneys today for a consultation.
