Will My Insurance Premiums Go Up After a Car Accident?
A car accident can not only result in physical injuries and property damage, but may also lead to increased auto insurance premiums. When a driver is at fault for a car crash, the average increase in their insurance premium rate is 34%, according to Coverage.com.
However, your insurance premium rates can go up even if you were not at fault for the collision. Speak with a Winter Haven car accident attorney at The Turnbull Firm to determine how your insurance rates will increase following your crash.
How much will your insurance premiums increase following a car crash?
It is nearly impossible to determine how much your insurance premiums would go up following a car accident. Typically, the percentage of the premium rate increase depends on the following factors:
- Your state
- Your auto insurance company
- Your age
- Whether you were at fault for the collision
- Whether you received a traffic ticket
- Whether you have prior crashes or moving violations on your record
- The amount of damage you cause
As a rule of thumb, auto insurance companies calculate insurance premium increases based on how risky a motorist is and how likely they are to be involved in another accident.
Depending on the above-mentioned factors, your insurance premiums could rise between 10% and a staggering over 70%. As you can see, the premium rate increases after a car accident vary greatly, which is why it is advised to contact an experienced attorney to evaluate your particular situation.
Why do auto insurers raise premiums rates?
Contrary to popular belief, increasing premiums rates is not an insurance company’s attempt to punish you. Instead, the auto insurer is trying to get you to pay more for car insurance because, in their eyes, you are more likely to be involved in a motor vehicle crash than drivers who have no accidents on their record.
Also, do keep in mind that increased insurance premiums are not permanent. In most cases, premium rates drop to the pre-accident level after a few years pass.
How can you avoid insurance premium increases after a car crash?
In some cases, car drivers can avoid insurance premium rate increases following a car accident if they qualify for their insurer’s accident forgiveness program.
For example, some insurers offer accident forgiveness for motorists who were not at fault for the accident. If you qualify for the program, your auto insurer may not raise your insurance premiums following the crash.
Many insurers offer the program for free to existing policyholders with no accidents and moving violations on their record. Others, meanwhile, offer new policyholders to sign up for the accident forgiveness program for an additional fee.
All of the following auto insurance companies offer the accident forgiveness program:
- State Farm
In Florida, a car accident will stay on your driving record for three to five years, depending on the severity of the crash and other factors. If you were involved in a car accident in Winter Haven, Lakeland, or other parts of Florida, speak with our attorney Sanga Turnbull to help you seek compensation for your damages. Call 863-324-3500 to schedule a consultation.