Car Insurance Rates After An Accident- How Will It Impact You?

If you are involved in an automobile accident, chances are that your insurance rates have increased. Some states require insurance companies to raise rates when a driver is involved in an accident, even if there are no injuries. Others will only need to increase if certain circumstances apply, such as moving violations or a DUI conviction on one’s driving record.

Key Factors

If you’re not sure how your rate might change after a crash, other factors may be considered, like age and location of the crash. This article will go over all of those details and provide helpful information about how car insurance works.

Car accidents happen daily and result in property damage and injuries that cost motorists money with their car insurers every time they drive down the road. Rates are constantly changing based on your car insurance company’s data collected and official statistical reports.

So, if you’re a victim in an auto crash or were involved in one that was not your fault, it’s best to get detailed information about the status of your rates as soon as possible.

When an insurance company proposes increasing your policy rate for several reasons, you should question whether all of these factors are covered under the higher premium.

It could be that you don’t need to pay such a high rate anymore and could make do with less coverage. Before signing up for a new policy, it’s usually a good idea to have a thorough discussion with your agent regarding each element involved in those monthly payments.

Your insurance premiums will rise if you are involved in a car accident since the company is required to do so.
This is true even if you’ve had no previous property damage or claims. The new premium amount may be higher and applied depending on the crash severity and who was at fault.

On the other hand, many insurance companies will only raise your rates if there were injuries or if the motorist had a traffic infraction or conviction on their record.

Video On Car Insurance Rates After Accident

Can you get lower rate after an accident?

It depends. For instance, if you present documentation that there was no harm or that you had no moving infractions during the accident or license suspensions in the previous 12 months. Most insurance companies will automatically give you a discount on the following policy period.

Your insurance company may not go any lower for these reasons after the accident. Your insurance agent can also give you a better rate to compensate for the additional expenses associated with being in an accident. Like all insurance companies, it pays to shop around and take advantage of discounts available for other factors besides crashes or accidents.

Crash rates do not necessarily stay at the same level as long as they are below a certain threshold.

The Top States That Will Increase Your Car Insurance After An accident are :

New Jersey – $6000-$15,000 Hit-and-Run Insurance Rates after an accident in New Jersey can change if the victim is injured when filing a claim. Suppose you are in the hospital, and your rates jump due to your injury or hospitalization.

You may be compelled to pay some of these additional charges in that case. It depends on each case, but it could add up to thousands of dollars. It’s crucial to note that most insurance companies will not raise rates this high unless they have another accident within the next six months, regardless of injuries.

Arizona – $3500-$12,000 hit-and-run insurance rates after an accident in Arizona can rise depending on the actual damage incurred and the amount of property damage that occurs when someone causes an accident.
Many factors influence whether you will face a premium hike and whether you will be forced to pay hundreds or thousands of dollars simply for being in an accident. You may also see a jump in your rate when you are convicted of a moving violation, regardless if there were any injuries or not.

New York – $5000-$15,000 hit-and-run insurance rates after an accident in New York can increase if you are a victim. The company will not raise your rates unless there were injuries or moving violations and if you have a history of these events on your driving record.

It’s important to note that if your insurance company found out about these incidents during the policy period, they will have no choice but to raise premiums for everyone and even drop coverage altogether.

North Carolina – $1500-$12000 hit-and-run insurance rates after an accident in North Carolina can rise to five times higher depending on the damages sustained during the accident.


These rates, however, may change if the driver is at fault or inebriated at the time of the accident. Your policy rate may increase if you have injuries that require medical attention if you have a history of traffic violations and alcohol related on your record.

Pennsylvania – $3500-$12000 hit-and-run insurance rates might be higher based on the severity of the accident and the injuries caused. Your rates will not increase until you have caused an accident.

You have been convicted of a moving violation, regardless of any other factors involved in your rate increase. It is one of the many reasons why it is always a good idea to avoid moving infractions and always respect the law.

Florida – $1500-$12000 hit-and-run insurance rates after accidents. Florida can increase many times if the victim is injured. The cause of their injuries is determined to be the driver’s fault. It will also go up if you are convicted of a moving violation and if your license was suspended. Other factors can lead to a rate increase, but none as significant as these two events.

California – $3500-$12000 insurance rates after an accident in California go up if you cause an accident and have a moving violation on your record. However, regardless of how serious the moving violation was or any injuries sustained during the crash, the premium rate will not increase.

Georgia – $3500-$12000 insurance rates after an accident in Georgia can go up if you cause an accident in which the victim has been injured. Suppose this is determined to be the driver’s fault through a police investigation or witness testimony. In that case, they will have to pay higher premiums for the next three years and are likely to see rate increases through their next renewal period.

Virginia – $3500-$12000 insurance rates after an accident in Virginia may increase after a crash if you are at fault and convicted of a moving violation. If injuries were sustained during the collision, the premiums would not be raised, even if severe. This is what sets Virginia apart from the majority of other states when it comes to hit-and-run premiums.

Alternative car insurance for high-risk drivers

Suppose your auto insurance company has decided to raise your rates or cancel your policy due to a hit-and-run accident. In that case, there are some options to consider. Many alternatives for finding an auto insurance carrier that can offer you with the coverage you need at the price you want are available on the internet.

You can find policies with a smaller deductible to lower your monthly premium or look for discounts based on factors such as your credit score, positive driving history, or other membership benefits. Look for additional discounts in areas such as anti-theft devices installed in your vehicle. Many sites should offer free quotes before making a final decision on which company to use.

How Much Hit-and-Run Insurance Should I Get?

Per National Highway Traffic Safety Administration data, 84 percent of all drivers engaged in hit-and-run accidents were first- or second-time offenders.

There are options to consider if your auto insurance carrier has opted to raise your premiums or cancel your policy altogether following a hit-and-run accident. Multiple options for choosing an auto insurance provider that will give you the coverage you require at the price you want are available on the internet.

How Can I Save Money on Car Insurance?

The key to lowering your monthly auto insurance premium is to find an online car insurance provider that offers cheap car insurance quotes. Since each state requires different coverage, you must compare car insurance quotes from multiple insurers before deciding which policy will be right for you.

These sites often have representatives available to answer all your questions. They will even provide reviews, so you know what others are saying about the companies.

What You Should Know About Car Insurance

An insurance agent an assist you compare policies and prices.

Many will have agents available to answer any questions you may have about your current or past insurance coverage. Most car insurance companies sell additional optional coverage such as liability protection, fire or theft coverage, and uninsured/underinsured motorist protection (UMPD).

There is also collision and comprehensive coverage, which pays for any damages to your vehicle resulting from an accident. In the case of an accident, Personal Injury Protection (PIP) will pay your medical bills and missed wages.

When you purchase car insurance, your car insurance company will provide you with a certificate of liability insurance. Make sure you have a copy of this with you at all times.

It will include minimum liability limits and other companies designated as extra insureds who may be required to participate in any claims settlement. Depending on the type of coverage chosen, it may pay out cash if the insured party requests it.

While many states require drivers to carry basic liability insurance, also known as “liability” or “bodily injury” coverage, they do not require the purchase of UM/UIM or comprehensive coverage.

A small percentage of states require the purchase of collision insurance as well.

It is worth noting that if your state does not require UM/UIM coverage, you cannot be liable for damages if you are involved in an accident and that another party is injured.

Suppose UM/UIM is not required or purchased by you in a no-fault state. In that case, it can be difficult to recover from medical expenses or lost income resulting from a car accident.

how to fight a 50/50 insurance claim

The most common form of insurance coverage is liability coverage. It covers the legal expenses that may require if you are found responsible for causing an accident. Suppose you have been involved in a hit and run accident. In that case, your policy will cover the legal expenses associated with this type of claim.

A person who another driver’s negligence has injured can file a claim for medical expenses, wage loss, and other losses that have resulted from the accident.

In some states, you may also be able to file a claim for property damage resulting from actions by another driver. Your claims are settled based on your deductible, which your insurance company pays before they will pay anything out to you.

Conclusion

You should know that there are many benefits to taking out a car insurance policy. You must be aware that rates will increase if you cause an accident or have a driving fault and could lead to a loss of coverage.

If your car insurance provider is giving you too much trouble and wants to cancel your policy, there are alternatives to consider. Online sites offer multiple options for finding an auto insurance carrier to provide you with the coverage you need and the price you want.

You can find policies with a smaller deductible to lower your monthly premium or look for discounts based on factors such as your credit score, positive driving history, or other membership benefits.

Look for additional discounts in areas such as anti-theft devices installed in your vehicle. Many sites and insured agents should offer free quotes before making a final decision on which company to use.

Check our recent article on Are you shopping for a high risk car insurance? – (autoandtechmedia.com)

References

Motorists Insurance Claims Association. (2012). About the national claim association.

http://www.claimsca.org/About-the-NCA/The-NCA-Story United States Department of Transportation.

National highway traffic safety administration: hit and run data overview

http://www.nhtsa.gov/HitAndRun/researchabouthitandrun National highway traffic safety administration: hit and run data overview

Auto & Tech Media — (autoandtechmedia.com)

Images By Pexels Free Stock Photos · Pexels