How much your insurance goes up after an accident depends on various factors. According to U.S. News & World Report, the average insurance premium increase after an at-fault accident is $872 per year (about $73 per month), but rates will vary depending on variables such as the severity of the accident, where you live, and which insurance company you purchased your policy from.
In general, only at-fault accidents will result in a car insurance premium increase. If you believe you were not responsible for a crash but the insurance company is blaming you, a car accident lawyer can investigate what happened and gather evidence of the other driver’s liability. In some cases, you may deserve compensation for your accident-related losses, such as medical expenses, lost wages, property damage, and pain and suffering.
Why Do Insurance Premiums Increase So Much After an Accident?
Car insurance companies are for-profit businesses. To make money, they must charge drivers more overall than the amount they have to pay out in claims.
When you cause a car accident, your insurance company automatically assumes you are more likely to cause another accident in the future, which would cause them to lose money if you kept paying the same rate. To decrease their risk, most insurers will raise your premium rate significantly.
What Factors Affect How Much Your Insurance Goes Up After an Accident?
After an accident, several factors may affect how much your premium increases, such as:
- The severity of the accident: If the accident was a minor fender-bender, your premium will likely increase less than it would after an accident that results in serious injuries. According to Forbes, the national average for rate increases after an accident with only property damage is 45%, whereas an accident causing injuries increases a driver’s rate by about 47%.
- Where you live: Car insurance rate increases after an accident vary by state because of different insurance regulations, frequency of claims, and specific risks insurers face in different locations. Per Forbes, drivers in Massachusetts see an average rate increase of 67% after an accident with injuries, while those in Florida generally see rates increase by about 39% in similar situations.
- Your insurance company: Different insurers implement different rate increases after accidents. For example, a Forbes investigation of 10 popular insurers found that State Farm has the lowest average rate increase after a property damage accident at 21%, while Geico has the highest at 73%.
What Is Accident Forgiveness?
Some insurance companies offer accident forgiveness programs that prevent your rate from increasing after your first crash. For example, Progressive will “forgive” its customers for their first at-fault accident that causes less than $500 in damages. Those who have been Progressive customers for more than five years and have maintained clean driving records during that time may qualify for forgiveness of larger accidents.
What Factors Do Car Insurance Companies Consider When Determining Your Premium?
While an at-fault accident plays a large role in how much you pay for car insurance, other factors also come into play, including:
- Your recent history of traffic tickets and other infractions
- How many claims you’ve filed in the past
- How much the insurance company has had to pay out on your previous claims
- Your age, gender, and marital status
- Your credit score
- The type of vehicle you drive
- Your car’s value
- How often and how many miles you drive each year
- What you use your vehicle for (commuting, working, errands, etc.)
- The amount of coverage you want to purchase
All of these variables will likely combine to create a unique premium amount for you.
How Long Will an Accident Affect My Insurance Premium?
Thankfully, an at-fault accident will not cause a permanent increase in your insurance premium. When determining your rates, your insurer will generally only look at your driving record for the last three to five years.
Some states also have regulations preventing insurance companies from referencing infractions from long ago when determining rates. For example, in the Commonwealth of Massachusetts, insurers cannot consider any traffic violations or accidents that are more than six years old.
How Can a Car Accident Attorney Help Me Prevent an Insurance Rate Increase After an Accident?
The best way to prevent insurance rate increases is to be a safe driver. However, sometimes drivers get blamed for accidents that weren’t their fault, resulting in an unfair increase in their premiums. If you find yourself in this situation, an auto accident lawyer can assist you by:
Gathering Evidence to Prove You Weren’t at Fault
Your personal injury attorney can gather evidence to prove you weren’t responsible for the accident, such as:
- The police report
- Eyewitness statements
- Traffic camera footage
- Accident reconstruction
- Physical evidence, such as vehicle damage
- Accident scene photos
With enough evidence of the other driver’s negligence, you may be able to avoid a premium increase.
Negotiating for a Settlement to Cover Your Damages
If your lawyer can prove another driver was responsible for the accident, you may be able to recover a settlement for your economic and non-economic damages, such as:
- Medical bills
- Lost wages
- Diminished earning capacity
- Property damage
- Physical, mental, and emotional pain and suffering
- Lost quality of life
- Lost enjoyment of life
- Disfigurement
- Disability
Your car accident lawyer can negotiate with the at-fault party’s insurance company on your behalf and fight for a monetary award that covers all your damages. If necessary, we can take your case to court to fight for the compensation you deserve.
Get a Free Car Accident Case Consultation Today
At GED Lawyers, our personal injury law firm has recovered over $100 million in compensation for our clients. We work on a contingency-fee basis, so our clients don’t pay us anything if we don’t win their cases.
If you want to know how much your insurance goes up after an accident or prevent a significant increase in your insurance premiums by proving an accident wasn’t your fault, our car accident attorneys can help. We offer free initial consultations for car crash victims, so don’t hesitate to contact us today.
