Car accident survivors deal with many financial concerns. The first major concern is who is responsible for the accident. The determination of liability will determine whether you can get financial compensation for your car accident injuries. Then, you are also worried about paying your medical bills. Your share of the medical costs can be considerable, even when you are awaiting payment from an insurance company.
Although it may seem like a minor concern, you might also feel stressed about having to pay more for your car insurance after an accident. Many factors guide insurance companies in determining whether you should pay more and how much more you should pay.
The last thing you need is for your insurance expenses to increase, but this should never keep you from considering an insurance claim for your accident-related losses. Your premiums should not increase in many situations, and you need the right car accident lawyer to help you prove someone else was at fault for your crash and injuries.
Reach out to a car accident attorney near you to discuss your options today.
Car Insurance Rates Can Go up After a Claim
Your car insurance rates may go up after an accident, regardless of whether you were at fault. However, they will increase far more if you were the one who was at fault for the accident because your insurance company might need to pay damages, both to repair your car and to compensate the other drivers or passengers involved.
So long as you make an insurance claim, the car accident can appear on your driving record. It does not matter whether you were at fault for the accident. The crash can stay on your record for up to five years.
No-Fault Claims Can Even Raise Your Car Insurance Premiums
Even if you were not at fault, your car insurance company can use the accident as an excuse to raise your rates. The main consideration is whether your claim forced your insurance company to pay anything. For example, if you suffered an injury in an accident with a driver who either did not have insurance or enough coverage, your own insurance company will need to pay for your claim in whole or in part. Then, your insurance provider will possibly raise your premiums the next time that you are up for renewal.
If you have filed multiple claims in a short time, you may still see a price hike, regardless of whether you were at fault. The fact that you have been in numerous accidents can show that you are more of a risk, even though you did nothing to cause them.
However, this hike is usually not that much. Some people report paying around 10 percent more in premiums after a no-fault accident. Nonetheless, you might consider a new policy before the renewal rates take effect, especially because you did nothing to cause the car accident.
At-Fault Accidents Will Result in a Large Premium Hike
A driver can expect to pay far more after an accident in which they were at fault. Insurance companies are in the business of taking on risk. A driver with a track record of causing an accident is much riskier for the insurance company. They need to take in enough premiums to both cover claims and earn a profit. If a driver has a past record of causing their insurance company to pay out money, the insurance company will demand more to cover them.
If a car accident involves injuries, the rates might increase even more than if there was just property damage. Claims with injuries can result in the insurance company paying out tens or hundreds of thousands of dollars. Not only will the insurance company believe that you are more of a risk, but they may also want to recoup some of the money they paid in a claim.
You Will Pay Far More in Premiums in Certain States
Each state’s residents will experience different increases in insurance premiums. For example, in Missouri, the average increase in car insurance premiums after an at-fault accident is 43 percent. This amount is lower than the national average, but it will still put a bite in your wallet. In contrast, the average car insurance premium will increase for California drivers by nearly 70 percent after an at-fault accident.
So long as your accident resulted in more than $500 in damages, Missouri law allows car insurance companies to raise your rates. Let’s face it – $500 will barely even cover a scratch to your car, given the astronomically high prices to repair your vehicle.
Save Money by Shopping Around
First, the car insurance company may have an accident forgiveness program. If they do, it can save drivers a significant amount of money. The accident forgiveness program may not raise the insurance rates for the first at-fault accident in a certain period. However, these programs are often only for drivers who have been with the car insurance company for a long time. Most major carriers have some form of an accident forgiveness program.
Several considerations will apply when the insurance company is calculating your new insurance rate. Your rate may be lower previously because you qualified for a safe driver bonus. The at-fault accident can mean that you may lose that incentive. You may also lose other bonuses and breaks that you previously received.
Insurance Companies Vary in How Much They Raise Rates
The first factor is how much the insurance company paid on the claim for the accident where you were at fault. The car insurance provider must adequately price the specific risk of insuring you. Once you become a higher-risk driver, the insurance company must price your policy accordingly. You might pay additional premiums until the accident comes off your driving record.
The amount that your policy goes up depends on the insurance provider. Some carriers may raise your premiums by more than 50 percent when you are at fault for an accident. The premium increase can be even larger if the crash was serious with a large payout. GEICO is known for raising rates by a large amount when you are responsible for an accident.
On the lower end of the spectrum, some auto insurance companies will raise your rates by around 25 percent. Each company will have its own unique underwriting factors that it considers in calculating the rates for a new policy. Either way, you should expect to pay hundreds of dollars more for coverage each year.
You will learn of the new rates before your policy is up for renewal. If you have sticker shock from your new policy premiums, you should consider shopping around and getting quotes from several providers. Your driving record will reflect your accident, so the new rates can factor the accident into the premiums.
However, you should at least try to save money if you think the new policy charges you too much. It costs nothing to get quotes from multiple insurance providers.
Your Rates Will Remain Elevated for Some Time
The accident will stay on your driving record for at least three years afterward. Accordingly, your rates will remain elevated for that period of time. In the meantime, you may consider various options to lower the cost of your policy, although you should never cut the amount of your coverage. You may also consider taking a safe driving course to reduce the cost of your premiums.
If you need to make an insurance claim, you should never let the prospect of potentially increased rates keep you from trying to get the money you need and deserve. The difference in the amount of your claim and the increased premium is large enough that you need to file the claim. If your claim is large enough, it might take hundreds of years of increased payments to exceed the amount you might receive in financial compensation.
The insurance company will do what it normally does as its business practices, and you should not let it keep you from getting the money you deserve. Do not be afraid of the insurance company and the legal process. An attorney can help you deal with the insurance company, allowing you to handle other things as necessary.
You Need to Fight to Have Your Story Heard After an Accident
Increased auto insurance is just one reason why you need to fight to keep the other driver’s insurance company from steamrolling you in the claims process. There are so many things at stake that you need someone fighting for you during the legal process. The insurance company may try to blame you for the accident, even when the crash was their own driver’s fault. Their main goal is either to pay as little as possible or to avoid paying the damages altogether.
Your insurance company and the other driver’s insurance company may jointly determine who was liable for the accident. For your side of the story to prevail, you will need evidence that backs up your account of what happened. It is not easy for you to investigate your car accident and gather the evidence you need to prove what transpired. Not only are you dealing with physical injuries, but you may also not have the investigative skills that an experienced attorney has.
How Your Lawyer Will Help You Prove Liability for a Car Accident?
When you hire a lawyer, they will immediately get to work to assemble the case you need to prove that someone else was responsible.
The following evidence can help your car accident claim:
- Eyewitness testimony from people who saw what happened in the accident
- Dashcam footage from your car or another vehicle in the area
- The police report from the accident (which is only usable with an insurance claim and not in court)
- Testimony from an accident reconstruction expert
- Pictures from the scene of the crash
If it is even a close call, it is in your interests to fight if you face accusations of fault, even to a small degree. Then, your insurance company will still need to pay out money, and they will raise your rates. The insurance company does not get the last word in your car accident case.
You Can Fight Back When You Face Wrongful Blame
If you are wrongfully facing blame for the car accident, or the insurance company claims that you are partially at fault, you will need to fight back legally. Your lawyer may file a lawsuit on your behalf, and a jury will be the one who decides fault in the car accident. You may not get a fair shake when you are trying to handle your case on your own. An experienced car accident lawyer will tell your side of the story and work to prove what really happened in the car accident.
If you can receive financial compensation, you are entitled to payment for the full amount of your damages. Your settlement check should include both the economic damages that came directly out of your pocket and the non-economic damages that compensate you for the experience of the car accident. Your car accident compensation can be substantial, and it is worth it for you to hire an attorney to represent your interests. Accident victims who hire an attorney for their case will do far better financially than those who try to take matters into their own hands.
It Will Cost Money from Your Pocket to Hire a Lawyer
Car accidentAttorney, Phillip J. Barkett
The good news is that hiring an attorney does not mean that money comes out of your pocket. An attorney will take your case on a contingency basis, meaning they will not receive a penny for their services unless you win your case.
Until then, your attorney will not ask you for any payment, which is an important consideration when dealing with the financial expenses that accompany a car accident. When your financial situation is on the line, you need the experience that a car accident attorney can bring to your case.