How Car Insurance Is Affected after an Accident

While in some states, being the cause of a car accident might impact your rates for up to five years, the national average rate increase for drivers with a clean record is forty-one percent. This is according to Forbes Advisor’s analysis.

The Effect of a Car Accident on Insurance

Being found at fault for a car accident is definitely going to see an increase in your car insurance rates at renewal time because it is considered as a chargeable accident which suffices to say, means that you are more than fifty percent at fault and the accident either caused damage to someone else’s property (another car or a fence), or bodily injury or death to someone else, or both.

When this happens, your car liability insurance policy will cover the property damage or injury to the victim. A claim made against your liability insurance then results in a surcharge which is the actual rate of increase after a chargeable car accident.

As an insurer cannot surcharge you in the middle of a policy period, the surcharge will start when you renew your policy.

The two things that can cause an impact on your insurance rates are, the severity of the car accident, and the cost of an insurance claim resulting from it. For example, a minor parking lot fender bender typically won’t have the same impact as a major accident and in certain states like Massachusetts, you won’t get a surcharge for claims under a thousand dollars or a certain dollar amount.

Car Accidents That Don’t Cause an Increase in Insurance Rates

A car accident is only non-chargeable when you didn’t cause the accidents, as only accidents caused exclusively by you, resulting in damage or injury to others, will increase your car insurance rates.

Some of the instances of non-chargeable car accidents are as follows:

  • When your car is struck in a hit-and-run accident.
  • When your car is damaged after being parked legally.
  • When your car is struck in the rear end by another vehicle, and you aren’t convicted of a moving traffic violation in relation to the accident.

To provide evidence, as may be requested by your car insurance agency, that you weren’t the cause of a car accident, some of the documents mentioned below will be needed.

  • A police report related to the accident.
  • A statement from the other driver’s insurance company accepting responsibility for the accident.
  • The other driver’s written statement, under penalty of perjury, attesting to fault.
  • A legal document showing that you were reimbursed for the damage.

Other accidents that do not result in a rate increase include collisions with animals, and damage caused by falling or flying objects. For assistance with all your insurance needs, contact the experts at Pierce Insurance Group today. We are ready to help you with all your coverage needs and questions.