Does A Car Crash Affect Insurance If You Are Found Not At Fault?

Insurers need to figure out who was at fault after an accident. This affects the insurance claim payout. However, fault in an accident is not always easy to prove. Your state’s laws and your insurer’s policies will determine how your rates are affected after an accident.

If you’re in an accident and you’re at fault, your insurance rate may increase. Insurance companies see drivers who are frequently involved in accidents as high risks and, therefore, need to pay higher premiums.

Do Not at-fault Accidents Affect Insurance

Unfortunately, even if the accident was not your fault, your insurance rate may still increase because your involvement in accidents is deemed as high risk. Your insurance premium could increase depending on the situation of your accident, your history of making claims, and your type of insurance coverage.

Fault and Insurance Rates

According to data compiled in The Zebra’s 2021 state of insurance analysis, auto insurance rates increased by $67 per year on average for a not-at-fault accident. Not-at-fault claims are filed against the at-fault vehicle owner’s insurance policy.

However, when you file against the at-fault party, you are less likely to see an increase in your insurance rate. Chicago accident lawyers can help you file a claim against them. Even if you need to file against your policy, some insurance carriers still won’t raise your rate for a not-at-fault claim.

Even no-fault accidents can increase the cost of doing business for your insurance company, and that cost gets passed on to you. Although this can be frustrating, you can always try to shop for a better rate with a new company if you are dissatisfied.

If Your Insurer Raises Your Rates

If you file a not-at-fault claim, and your insurance carrier raises your rate, then it could be in your best interest to look for a new policy. New charges won’t be applied until your insurance renewal date, so that could give you time to shop for a better, more affordable, policy.

No-Fault Insurance

In most states, it is mandatory to have the minimum required car insurance to drive. This includes bodily injury liability and property damage liability coverage. In a no-fault insurance state, drivers must add Personal Injury Protection coverage, or PIP.

In a no-fault state, you file a claim with your insurer for medical expenses, regardless of who was responsible. PIP coverage also handles lost wages up to your policy limits. No-fault insurance has two purposes—it saves time and money. In no-fault states, PIP pays out immediately, regardless of fault.

Protect Yourself After A Car Crash

After an accident, the first step to protect yourself is to call the police and file a police report. You may also want to call your insurance company and explain what happened. When conversing with the other driver, refrain from making statements about culpability or accepting responsibility. Calling a car accident lawyer can also ensure you protect your rights and your insurance premiums.