Following a collision, car insurance rates may rise. The exact rate increase will depend on the unique circumstances of the accident and your insurer. If you cause an accident, you can expect your premiums to go up. However, even if you aren’t at fault, you may still face higher insurance costs. Please continue reading as we explore when a not-at-fault claim can raise your insurance costs and how a skilled Prince George’s County Auto Accident Lawyer can assist you.
What is a No-Fault Accident?
There are generally two types of accidents: at-fault and no-fault accidents. A no-fault accident refers to when you weren’t the party who caused the crash, while an at-fault accident means you are responsible for the accident. Car insurance providers have certain fault assessment methods to determine which motorist was at fault and which insurance company is responsible for compensation. It’s important to understand how your state determines fault in a collision because it can affect the type of insurance you are required to carry and the outcome of a claim in the event of a car accident.
If you cause an accident, your insurance costs will increase. However, even if you weren’t at fault, you can still face higher rates. According to the Consumer Federation of America, motorists who have been involved in no-fault accidents can see an average premium increase of 10 percent.
Can My Car Insurance Rates Go Up If the Accident Wasn’t My Fault?
Insurance companies evaluate several years of driving history to determine policyholder rates. At-fault accidents typically raise insurance rates, though some insurers may not increase premiums for damages below a certain threshold. This is because they indicate a higher risk of future claims. The extent of the premium increase varies depending on the insurer, the severity of the crash, and the driver’s overall record. However, even not-at-fault accidents can increase rates. Although the motorist may not be directly responsible for the collision, their involvement may still be perceived as an indicator of increased risk.
Similar to traffic violations and at-fault accidents, not-at-fault accidents remain on a driver’s record for three to five years, depending on the jurisdiction and the insurer’s policies. The presence of not-at-fault accidents on a driving record may not always result in an immediate increase, but they can still influence a motorist’s risk profile and may lead to higher rates upon policy renewal or when switching insurance plans.
It’s important to contact your insurance company to report the accident, even if you were not at fault. This will help you understand how it could affect your premiums. At Timian & Fawcett, LLC, we are prepared to help you navigate this difficult time. Connect with our firm today to discuss your situation with a seasoned member of our legal team.
