In many cases, yes. Your insurance rates may go up after a car accident, but how much they go up depends on various factors, including whose fault it was, your driving history, and insurance company policies.
That decision rests in the hands of your insurer, but a lawyer can also help keep prices down by showing that you had less fault than the other driver. Contact our Los Angeles car accident lawyers if you’ve been in a car accident and have insurance worries.
Factors That Influence Insurance Rate Increases
Several factors can affect whether your insurance will go up after a car accident. Here are the most common ones:
Fault in the Accident
One of the primary factors is whether you were at fault for the accident. If you were not at fault, your rates are less likely to increase significantly, if at all. However, if you were at fault, you may see a substantial rate hike.
Severity of the Accident
The extent of damage and injuries resulting from the accident can impact your insurance rates. More severe accidents with higher claim payouts are more likely to increase premiums because the accident either cost the insurance company more money or showed you were a greater risk to insure
Your Driving History
Insurance companies consider your overall driving record when determining rates. If this is your first accident in an otherwise clean driving history, the impact on your rates may be less severe than if you have a history of accidents or traffic violations.
Accident Forgiveness Programs
Many insurance companies offer accident forgiveness programs, which may prevent your rates from increasing after your first at-fault accident. Check if your policy includes this feature.
Policy Renewal Period
Rate increases typically don’t take effect until your policy renewal period. This allows you to explore your options and find better rates with other providers if you fear your rates will increase after a car accident.
California Regulations on Insurance Rate Increases
Insurance rate increases are subject to state regulations. In California, there are certain protections in place to prevent excessive rate hikes. Proposition 103:
- Requires insurance companies to justify rate increases
- Allows for public participation in the rate-setting process
- Mandates that driving safety record be the primary factor in determining premiums
Under California Insurance Code Section 1861.02, if you’re found to be at fault in an accident, your insurance company can typically only increase your premium by up to 20% above the rate of a driver with a clean record.
California insurance companies can only increase premiums after an accident if the damage exceeds $1,000 or if there are injuries. This threshold helps protect drivers from rate hikes due to minor fender benders.
(310) 526-8383The Long-Term Impact on Your Insurance After a Car Accident
While an accident may lead to short-term rate increases, an accident’s impact on your insurance isn’t necessarily permanent. Here’s what you should know:
Duration of Rate Increases
Typically, accidents affect your insurance rates for three to five years. After this period, the effect on your premiums should diminish or disappear entirely. However, this assumes you do not get into another accident.
Improving Your Insurance Standing
You can take proactive steps to improve your insurance standing over time:
- Maintain a clean driving record
- Consider taking defensive driving courses
- Bundle your insurance policies for potential discounts
- Shop around for better rates as time passes since your accident
What If You’re Wrongly Assigned Fault?
Being wrongly assigned fault in a car accident can seriously affect your insurance rates and legal standing. If you’re deemed at-fault after a car crash, you could have to pay more insurance and pay for any damages you’ve suffered. Fault is typically determined through:
- Police reports
- Witness statements
- Physical evidence at the scene
- Traffic laws and regulations
Sometimes, these determinations can be flawed or incomplete, leading to incorrect fault assignments. If you believe you’ve been wrongly assigned fault:
- Document everything: Gather all accident evidence, including photos, videos, and witness contact information.
- Obtain the police report: Review it carefully for any inaccuracies or omissions.
- Contact your insurance company: Inform them that you dispute the fault determination.
- Seek legal representation: An experienced attorney can help protect your rights and challenge the fault assignment. They can also help you get compensation if you’re the actual victim in the case.
Remember, time is of the essence in these situations. The sooner you act to challenge an incorrect fault determination, the better your chances of a favorable outcome.
Protecting Your Interests After an Accident
While insurance rates going up after a car accident is common, it’s not inevitable or irreversible. Taking appropriate actions and seeking professional guidance can significantly change how your insurance costs will change after an accident.
At Omega Law Group, we’re committed to letting our family take care of your family. Don’t let concerns about insurance rates add to your stress after an accident. Contact Omega Law Group today for a consultation. We’ll help you understand your options, protect your rights, and work towards the best possible outcome for your situation.
