How much does car insurance go up after an accident? The amount of your car insurance rate increase is impossible to determine, as it depends on numerous factors, including the type of policy, fault, and the severity of the accident.
After an accident, you expect your car insurance to cover your losses, and most of the time, it will when your policy covers the specific cause of the accident. A Charlottesville car accident lawyer can assist with filing a compensation claim.
Insurance Company Policies
A primary factor that influences the increase in your insurance premiums after a car accident is the specific policy in place. You may not know what these internal decision-making policies are or how they impact your insurance rates over time. However, insurers make decisions based on risk.
If you are a higher risk to the insurance company because you engaged in reckless or intentionally careless acts, the insurance company sees this as a threat to its financial stability. If you have done this in the past, you can do it again. To protect their bottom line, they will raise your rates in the coming months or years to reflect the higher risk.
If you have a driving record that matches that risk, such as with numerous speeding tickets or other moving violations, that will likely lead to a higher perceived risk. This increases the cost insurance companies may charge you in the future. Speak with a Charlottesville personal injury lawyer about your car accident today.
Insurance Company Increase Amounts
Insurance company policies also determine how much your rates will increase. In a minor accident, the insurer may increase your rates by 10% or more.
Other times, especially when you are at fault in a serious accident, the insurance company may increase your rates as much as 50%. Ultimately, this is dependent on numerous other factors, such as those below.
For a legal consultation with a personal injury lawyer, call (434) 817-3100
Whether You Are at Fault in the Accident
If you are at fault for the accident, that means your insurance company is liable for the losses you have. The direct result of that is a potential increase in your premium. That is because you are not a higher risk to the insurance company.
Not all insurance companies raise rates after every accident. However, if you are at fault, you can expect the insurance company to be more cautious in assigning premiums to you in the future.
For example, if your auto insurance renews in the next six months, the insurer may review your driving record and collision history to determine if you are at a higher risk. If you are at a higher risk level, meaning they believe you may cause another accident, the insurance company could raise your rates.
Some companies offer accident forgiveness. This is a way to prevent drivers who make a mistake from incurring a substantial increase in costs. However, this differs from one insurance provider to the next. You can always call your insurer directly to find out if they offer this perk.
How Severe the Accident Is
An accident with severe damage is likely to result in higher costs. A higher payment means less profit for the insurance company. To combat that, some insurance companies may decide to increase your rates later. Examples of severe accident injuries that may lead to this include:
- Traumatic brain injuries
- Spinal cord injuries
- Disfigurement
- Crushing accidents
- Amputations
- Internal organ injuries
If the victim suffered serious injuries that required extended hospital stays, surgery, ongoing therapy, or long-term support, that increases the cost. More serious accidents like this require the insurance company to pay more towards that care.
Presence of Catastrophic Injuries
Catastrophic injuries are those in which a person suffers some type of loss that will not fully improve even with maximum medical care and support. In these situations, the insurance company is likely to have to pay out more in damages to the victim, and that increases the risk of being charged a higher car insurance rate later. Examples of catastrophic injuries include:
- Spinal cord damage resulting in temporary or permanent paralysis
- Amputations of legs or arms
- Loss of vision
- Loss of hearing
- Traumatic brain injuries that result in permanent loss of cognitive function
Those with injuries like this may need a lifetime of ongoing care and support, and in some situations may require additional compensation for the damage to their quality of life. That is especially true in situations where a person cannot do the things they enjoy, communicate efficiently, or work. Review our FAQs to learn more about car accidents and insurance rates.
Previous Driving Records and Risks
There are many instances in which a car accident is just a one-time mistake, and you may not feel it is fair that the insurance company raises your rates in these cases. However, to determine this, you can expect the insurance company to consider factors that go beyond this single incident:
- Have you been in other car accidents in the last year?
- Did you file a claim previously with the insurance company for an at-fault accident?
- Did you contribute to any degree to the fault of a major accident in the past?
Insurance companies may look beyond the coverage they provide to you to consider previous claims you made with a previous insurer as well.
Previous claim history can be shared by auto and home insurance companies with other providers, which enables better risk assessment for the company. This can make it hard for you to find an insurer that offers a lower rate if you have numerous claims on your record.
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Why an Attorney Matters
After an accident in which there are serious injuries and losses, hiring a car accident lawyer to prove you were not at fault is often a necessary and financially savvy step.
Not doing so puts you at risk not just for fines and points on your license, but also for potential increases in your auto insurance. For that reason, always consult a lawyer before settling a claim and admitting fault. Call MartinWren, P.C., today.
Call (434) 817-3100 or complete a Case Evaluation form
