You've been in a car accident. It was your fault, and no one was hurt, but there was damage to both cars. You exchange insurance information with the other driver and return to your car to go home. As you drive, you're thankful you pay for full coverage auto insurance, but you can't help but wonder, how much will this cost me? And more importantly, how much will my car insurance go up after an accident?
While it's impossible to give a definite answer without knowing all the situation details, we can turn to some expert sources to get a ballpark estimate. So let's see what the actuaries have to say.
How Will My Rates Go Up
Actuarial increases are caused when an insurance company experiences an increase in its overall claims. This can be due to several factors, such as more accidents or an increase in the cost of medical care. When an insurance company experiences an actuarial rise, it will often raise rates to ensure they are making a profit.
So what does this mean for you after you've been in a car accident? Unfortunately, it means your rates are likely going to go up. How much they will go up depends on several factors, such as the severity of the accident and your insurance company's current rate schedule. But it's safe to say that your rates will be higher than before the accident.
You must talk to your insurance agent if you're worried about how an accident will affect your rates. They can give you a better idea of how much your rates might go up and help you find coverage that fits your needs and budget. Actuarial increases after an at-fault accident fall into a few different categories.
Coverage Premiums
The first is an increase in your car insurance premium, which you pay yearly for coverage, typically from 20% to 50%.
Deductible
The second is an increase in your deductible, which you must pay out-of-pocket before your insurance policy kicks in. This usually goes up by $500 or $1,000.
Additional Fees
Finally, you may have to pay additional fees if your insurer drops you from their coverage altogether.
What Factors Will Affect How Much My Rates Go Up?
Now that we know how much car insurance rates could go up after an accident, let's look at some factors that affect how much your rates will increase.
Who's Fault
First, insurers look at whether the accident was your fault or not. If it was partially or not your fault, you're less likely to see a significant increase than if it was entirely your fault.
How Bad Was It?
Second, they'll consider the accident's severity, and a fender bender is less likely to result in a rate hike than a multi-car pileup.
Your History Behind the Wheel
Third, they'll look at your driving history. If you've been in accidents in the past or have speeding tickets on your record, you're more likely to see a more significant rate hike than if this is your first infraction.
Your Insurance Provider and Other Factors
Finally, your insurance provider will consider several other factors when deciding how much, if any, your rates should increase. These include your driving history, age, gender, credit score, type of car, and more.
Talk to Your Agent About Rate Increases After an Accident
The best way to figure out how much your car insurance rates will increase after an accident is to talk to your insurance provider. They can give you a more accurate estimate based on the details of your accident and ongoing factors that may play into your rate hikes.
And if you're worried about this increase or want alternative coverage options, they can help you find the best plan for your needs and budget. So don't hesitate to reach out if you have any questions or concerns. With the right insurance coverage, you can feel confident and protected on the road no matter what life throws your way.
Your agent will also be able to help you go through the legal checklist to avoid further issues down the road with your claim and any law enforcement involvement. It's important to know what information to exchange with whom and what paperwork needs to be filed with officers at the accident scene.
Prevent Accidents and Drive Safely to Avoid Rate Increases
In addition to talking to your insurance agent, you can do a few other things to help prevent rate increases after an accident.
- Drive safely and avoid accidents as much as possible
- Always use caution when driving on the road
- Obey traffic laws
- Be aware of your surroundings
- Stay current on your car maintenance, including regular checkups and repairs.
- Remember always to drive sober – no alcohol or drugs behind the wheel!
- Avoid distracted driving by parking your phone until you park your car
Following these tips can reduce your risk of accidents and help keep your rates reasonable. Good luck!
It's Not Magic or Rocket Science - But Rising Rates Aren't Fun
So there you have it! While there's no magic number for how much car insurance rates will increase after an accident, we now have a better idea of what actuaries consider when coming up with their rates. And as always, be sure to shop around and compare rates from different insurers before making a decision.