If you’re a driver, the chances are that you’ll be in an accident between three to four times throughout your driving lifetime. But what happens to your auto insurance after these crash events? The answer is that it can go up by up to 49% or around $348 per year on average! However, some factors determine how much your rates go up after an incident. Read on to find out more information about this complicated topic!
Why do auto insurance rates rise following a collision?
Your car insurance rate increases after an accident because a claim-filing fee, which isn’t included in the original premium, is triggered when you file a claim on your policy. The filing fee for a claim includes the charge of a claim adjuster’s time, claims representative fees, parts and labor expenses, and costs associated with preliminary analysis. Your provider will raise your rates to cover these extra fees.
After an accident, your insurance provider serving Orlando, FL, now considers you a greater risk to insure than someone with a clean driving history. According to industry data, drivers in crashes are more likely to have another crash later on. So your provider will account for this risk by charging you more for insurance.
However, there are some ways you can avoid high premiums from claims-related surcharges by avoiding them altogether or settling out of pocket if possible – as long as it’s not too serious and there aren’t any injuries involved.
Not-at-fault accidents and your insurance
Have you been in a not-at-fault accident? You may be wondering how that impacts your insurance rates. It’s important to know that there are many factors at play. In some states and with certain insurers, premiums will never increase after a not-at-fault accident. For example, in 2017, State Farm insured drivers who had an accident caused by someone else didn’t see their rates go up at all. However, after a non-at-fault accident, drivers’ rates typically rise by 4%, though it is usually determined by the state laws and the insurance company’s policies.
If you’ve been in an accident and you weren’t the one at fault, your insurance company might still have to pay for medical expenses or car shipping. The specifics will depend on what type of coverage you have and which state you live in, resulting in your insurance provider increasing your rate. You need to use professional service to shipping a car in Canada
The average car insurance rates increase after an accident in different states
If you get into an accident in which you are at fault and someone is injured, your car insurance rates could go up by $1,157 on average. There are significant differences among states regarding how much a typical premium would rise after a crash where there is an injury event.
For example, if you have a collision in the state of Kansas, your average insurance premium could rise by 8% after a crash in which someone is injured. Meanwhile, if you live in Michigan and have the same coverage types on your policy, your rate would typically go up by 105% after a crash. Therefore, it’s important to know what your state laws say after an accident and how that affects your car insurance rates.
Which insurance provider offers the lowest rates following an accident?
When you’re in a car accident, your insurance company hugely impacts how much your rates go up. Different insurers have different policies about how they treat accidents. Some companies allow for the first accident to be ignored in terms of raising rates. However, you can use the general rules of thumb to help guide you through the process. After any type of collision with another driver or object, you should call your insurer and report the incident as quickly as possible.
We looked at five of the largest car insurers in America and found that State Farm had a 24% rate increase after a bodily injury claim while USAA increased by 42%. Allstate was next with a 53% increase, Progressive had a 54% average rate change, and Geico increased by 58%. Therefore, if you are looking for an insurance service provider, it’s important to know how they treat your bodily injury claim.
There are many ways to avoid the high premiums associated with claims-related surcharges, so you should be proactive about your insurance. Knowing what type of coverage you have and which state you live in will help guide how your rates go up after an accident. In some cases, a company might allow for the first accident to be ignored as far as rate increase goes, while other companies could see a 24% average change or more from bodily injury claims. After any collision, it’s important to report the incident right away and call your insurer.