Car Insurance Costs After an Accident By William Chanfrau, Jr. on July 14, 2020

Insurance claim for car accidentCar accidents often cause significant damages, which result in costly financial losses. When an accident occurs, drivers need to file a claim with their insurance company so that those costs can be covered by their provider. Unfortunately, in most cases, car insurance premiums increase after an accident claim is made.

The car accident lawyers at Chanfrau & Chanfrau, with offices in Daytona Beach, FL, and Palm Coast, FL, have helped many clients collect the compensation they are due following an accident. We have extensive knowledge regarding collisions, insurance coverage, and insurance rates. Here we prepare our clients for how they can expect their insurance rates to be impacted following an accident.

How Much Will My Rates Increase after an Accident?

There are many factors that go into determining how much car insurance rates will go up after an accident. Rate increases are dependent on what type of insurance claim was made (i.e. a bodily injury claim, property damage claim, or a comprehensive auto claim), what state the driver resides in, how much damages the accident caused, whether the driver was at fault, and the driver’s accident record.

With all the variables that can affect insurance rates, we cannot say exactly how much a premium will increase after an accident. However, in a study performed by Insurancequotes and Quadrant Information Services, it was found that, on average, drivers could expect their insurance premium to increase by 44.1 percent after filing a single accident claim with $2,000 in damages or more.

How Long Will My Rates Stay Up?

Unfortunately for those who have been involved in an accident, once insurance rates go up, they tend to stay that way for quite some time. Again, this can vary based on the insurance provider, the driver’s accident record, and the state of residence. An at-fault accident that results in $2,000 in damages or more will typically result in a premium increase for three to five years.

What If the Accident Isn’t My Fault?

Insurance rate increases are far more likely when an at-fault accident is reported. However, even if an accident is not a driver’s fault, the insurance premium may still go up. Drivers who are considered “at risk” have higher premiums. While drivers are unlikely to be classified as at risk after a single accident that was not their fault, they may be considered risky if they have been victims of several not-at-fault accidents.

In some cases, an insurance company may deny accident liability, leaving other involved drivers to pay the costs of an accident that wasn’t actually their fault. This is when it is especially beneficial to work with a knowledgeable car accident lawyer, such as those at Chanfrau & Chanfrau. Our attorneys can gather the evidence necessary to prove liability, so that our clients can be compensated for accident damages, and potentially save themselves from insurance rate increases.

Tips for Lowering Insurance Rates

Insurance rate increases can be difficult to handle after an accident, but there are some tips that people can try to keep their rates low:

  • When shopping for car insurance, ask if they offer accident forgiveness
  • Ask about other driver discounts offered by insurance companies
  • Consider increasing your deductible (if affordable) to decrease premiums
  • Shop around; rates can vary greatly between insurance companies
  • Do not accept liability for an accident that isn’t your fault
  • Ask about taking a driving class to lower premiums after an at-fault accident

Contact Our Practice

The car accident attorneys at Chanfrau & Chanfrau can be invaluable in the aftermath of a collision. If you have been injured in an accident and would like to find out how our lawyers can help you collect compensation for damages, send us a message at your earliest convenience, or call (386) 258-7313 to schedule a consultation.

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