How Much Will My Insurance Go Up After an Accident?

One of the biggest worries people have after a crash is how it will affect their insurance rates. While every situation is different, there are some general things to know about how accidents impact car insurance premiums. This guide will explore what factors influence rate increases, what you can expect to pay, and how working with a Southfield car accident lawyer may help protect your interests.

What Happens to Your Insurance After an Accident?

After you're in a car accident, one of the first things you should do is seek medical care if you're hurt. Your health and well-being should always come first. Once any immediate medical needs are addressed, you'll need to report the accident to your insurance company.

When you file a claim, your insurer will review the details of what happened. They'll look at police reports, talk to witnesses, and assess the damage. Based on this information, they'll determine who was at fault for the crash. If you're found to be fully or partly responsible, you can expect your insurance rates to go up at your next renewal.

Even if you weren't at fault, some insurance companies may still raise your rates simply because you were in an accident. This is why it's so important to have a car accident lawyer on your side. They can help make sure you're not unfairly blamed and advocate for you with the insurance companies.

How Much Will Your Rates Increase?

The amount your insurance goes up after an accident depends on several factors. These include things like:

• Your driving history


• The severity of the accident


• How much the insurance company had to pay out


• Your insurance company's specific policies


• Where you live

These increases typically last for three to five years after the accident. Over time, if you maintain a clean driving record, your rates should start to go back down. But those first few years can be tough on your wallet.

This is another area where having a car accident lawyer can pay off. They may be able to negotiate with the insurance company to minimize your rate increase. They can also make sure you're not being overcharged based on an incorrect assessment of fault.

Does the Type of Accident Matter?

The nature of the car accident does play a role in how much your insurance rates will increase. Generally speaking, more severe accidents lead to bigger rate hikes. This is because they usually result in larger insurance payouts.

For example, a fender bender where no one was hurt might only cause a small increase in your rates. However, a majorhead-on collision withsevere injuries and totaled vehicles could lead to a much larger spike in your premiums.

The type of claim you file also matters. Property damage claims tend to have less impact on your rates than bodily injury claims. This is because injury claims are usually much more expensive for insurance companies.

Again, this is where having a car accident lawyer can be helpful. They can guide you through the claims process and help you understand how different types of car accident claims might affect your insurance rates.

How Long Will Higher Rates Last?

Most insurance companies will keep your rates higher for three to five years after an accident. Each year that passes without another incident, your rates should go down a little. After the three to five-year period, the accident will typically "fall off" your record, at least as far as your insurance company is concerned.

However, this doesn't mean your rates will automatically go back to what they were before the accident. Other factors, like general rate increases or changes in your driving record, can affect your premiums during this time, too.

While your insurance company may stop considering the accident after a few years, it can stay on your official driving record for much longer. In some states, accidents remain on your record for up to 10 years.

Choosing the right car accident lawyer can help you understand how long an accident might affect your rates in your specific situation. They can also advise you on steps you can take to potentially speed up the process of lowering your rates.

Can You Switch Insurance Companies to Avoid a Rate Increase?

Some people think they can avoid a rate hike by switching to a new insurance company after an accident. While this might work in very rare cases, it's usually not a good strategy.

When you apply for a new policy, insurance companies will check your driving record. They'll see any recent accidents and factor them into your rate. In fact, you might end up paying even more with a new company because you won't have any loyalty discounts or safe driver bonuses built up.

That said, it can still be worth shopping around after an accident. Different insurance companies have different ways of calculating rates. You might find one that doesn't penalize you as heavily for your specific situation.

A car accident lawyer can be a valuable resource here, too. They often have experience dealing with many different insurance companies and may be able to recommend ones that are more forgiving when it comes to accidents.

What About Accident Forgiveness?

Some insurance companies offer a feature called accident forgiveness. This means they won't raise your rates after your first at-fault accident. If you have this benefit, it can save you a lot of money.

However, accident forgiveness usually isn't free. You typically have to pay extra for it or earn it by maintaining a clean driving record for a certain number of years. And even with accident forgiveness, you might lose other discounts after an accident, which could still result in a higher overall premium.

It's also worth noting that accident forgiveness usually only applies to your first accident. If you have a second one, you'll likely face a significant rate increase.

If you're not sure whether you have accident forgiveness or how it works with your policy, a car accident lawyer can help you understand your coverage and rights.

How Can a Car Accident Lawyer Help with Insurance Issues?

First and foremost, a car accident lawyer understands the ins and outs of insurance law. They know your rights and can make sure insurance companies aren't taking advantage of you. If an insurer tries to unfairly raise your rates or deny a claim, your lawyer can fight back on your behalf.

A car accident lawyer can also help ensure that the fault in your accident is correctly determined. This is incredibly important because being found at fault can have a huge impact on your insurance rates. Your lawyer will investigate the accident thoroughly, gather evidence, and argue your case to make sure you're not unfairly blamed.

When it comes to dealing with insurance adjusters, having a lawyer can be a game-changer. Insurance companies are known for trying to settle claims for as little as possible. They might pressure you to accept a low offer or trick you into saying something that hurts your case. A car accident lawyer can handle all communication with the insurance company, protecting your interests and fighting for fair compensation.

If your car accident resulted in injuries, a car accident lawyer becomes even more important. They can help you understand the full extent of your damages, including future medical costs and lost wages. This ensures you don't settle for less than you deserve, which could leave you struggling to pay bills down the road.

A lawyer can also advise you on when it might be worth fighting a rate increase. In some cases, they may be able to negotiate with the insurance company to minimize or even eliminate a rate hike. This could save you thousands of dollars over the next few years.

Finally, a car accident lawyer can help you explore all your options for coverage and compensation. They might identify sources of recovery you hadn't considered, like underinsured motorist coverage or third-party liability. This can be especially helpful if the accident wasn't your fault, but your rates are still going up.

What Steps Should You Take After an Accident?

While we're focusing on insurance impacts in this article, it's worth briefly touching on what to do immediately after an accident. These steps can help protect both your health and your legal rights.

First, as we mentioned earlier, seek medical attention if you're hurt. Even if you feel fine, it's a good idea to get checked out. Some injuries, like whiplash, might not show symptoms right away.

Next, report the accident to your insurance company. Be honest, but stick to the facts. Don't admit fault or speculate about what happened.

Finally, consider contacting a car accident lawyer as soon as possible. The sooner you have legal representation, the better protected you'll be throughout the claims process.

Remember, the actions you take right after an accident can have a big impact on your insurance rates and any potential legal case. A car accident lawyer can guide you through these crucial early steps to help minimize negative consequences.

Understanding Your Policy

One of the best ways to prepare for the possibility of an accident is to understand your insurance policy before anything happens. Many people don't really know what their policy covers until they need to use it.

Take some time to review your policy documents. Pay attention to things like your coverage limits, deductibles, and any special features like accident forgiveness. If there's anything you don't understand, don't hesitate to ask your insurance agent for clarification.

It's also a good idea to review your policy annually. Your insurance needs can change over time, and you want to make sure you're always adequately covered.

If you find your policy confusing or overwhelming, a car accident lawyer can help. They can review your coverage and explain what it means in practical terms. They might even be able to suggest ways to improve your coverage or save money on your premiums.

What if You Can't Afford Your New Rates?

If your rates go up significantly after an accident, you might struggle to afford your new premiums. In this situation, you have a few options.

First, talk to your insurance company. They might be willing to adjust your coverage or offer additional discounts to help lower your rate. For example, you could increase your deductible or remove optional coverage from older vehicles.

You could also consider taking a defensive driving course. Many insurance companies offer discounts for completing these classes.

Shopping around for new insurance is another option. While your rates will likely be higher with any company due to the accident, some insurers might offer better prices than others.

If you're really struggling, some states have low-cost auto insurance programs for eligible low-income drivers. A car accident lawyer can help you understand if these programs are available in your area and if you qualify.

Remember, while it might be tempting, never drive without insurance. It's illegal in most states and can lead to severe penalties if you're caught or get into another accident.

Don't Hesitate to Reach Out to a Car Accident Lawyer

If you've been in an accident and are concerned about your insurance rates, don't hesitate to reach out to a car accident lawyer. Many offer free consultations, so you can get expert advice on your situation without any obligation.

Remember, while dealing with insurance issues might seem overwhelming, you don't have to face it alone. A Southfield personal injury lawyer can save you money and stress in the long run. Don't let insurance companies take advantage of you - get the legal help you need to protect your rights and your wallet.