If you are injured in a car accident, the last thing you should have to worry about is insurance rates going up after the accident. However, even a minor car accident can have a lasting impact on your car insurance costs. Forbes recently dove into this issue and the findings are startling.
How Does a Car Accident Affect Insurance?
Insurance premiums are based on statistical data and the likelihood that you will be in a wreck.
If you cause a car accident, insurance coverage rates will likely go up. The amount they go up will depend on the severity of the car accident and the cost of the insurance claim.
Car insurance companies can hike up insurance rates for “chargeable” accidents, which are those in which their insured is more than 50 percent at fault and caused property damage, injury, or death to someone else. Once a claim is made against your liability insurance, a surcharge is added. The surcharge is equal to the rate increase. You will begin paying this surcharge when you renew your insurance policy.
Average Car Accident Insurance Rate Increase After an Accident
According to the Forbes Advisor analysis, the average car accident insurance rate increase after an accident they cause is 41 percent for drivers with a clean record. Here in Georgia, the average insurance rate increase after an at-fault accident is 45 percent. The rate increase generally lasts for three to five years.
The amount of the insurance rate increase also depends on your car insurance company. The Forbes Advisor analysis calculated the average rate increase nationwide for an accident for drivers with 100/300/100 collision and comprehensive insurance. According to this analysis, State Farm had the lowest average rate increase after an at-fault car accident, with 25.2 percent nationwide. MetLife had the highest average rate increase, with 62.5 percent.
Other insurance companies and their surcharge include:
- Travelers – 32.5 percent
- USAA – 37.5 percent
- Allstate – 41.9 percent
- Farmers – 45.1 percent
- Geico – 45.3 percent
- Nationwide – 54 percent
- Progressive – 62 percent
Need a Car Accident Lawyer? Contact Spaulding Injury Law
The potential for hiked insurance premiums if you are blamed for an accident that was not your fault is one more reason why it is vital to hire an experienced car accident lawyer after a crash. You should not have to spend years paying higher insurance rates for an accident that was not your fault.
Our experienced legal team can investigate your claim and gather evidence to prove you were not at fault for the accident, such as:
- The police report
- A statement from the other driver accepting fault
- Eyewitness testimony about how the accident happened
- Physical damage that corresponds with the other driver hitting you
- Photos or videos of the accident
At Spaulding Injury Law, we are real lawyers helping real people. We have achieved remarkable results for our clients, including a $1.5 million recovery for the family of a man who died in a head-on collision and $350,000 in a rear-end collision case.
Find out more about how we can help with your claim by calling us or contacting us online today.
