Auto Accident and Insurance Increases


The consequences of having an auto accident can vary and haunt your for years afterward. Accidents impact not only obvious things like auto insurance rates, driving records, and property; they also affect physical and mental well-being as well as one's financial status.

When it comes to auto insurance, if you're involved in an automobile accident, premium increases are possible but not necessarily probable. How much premiums go up, if they do at all, depends on several factors:

  • Accident Factors: Factors that affect insurance premiums include the severity of the accident and whether you were at fault or not. Even though you may be found blameless or equally at fault, your insurance company may still raise your rates. Also, an accident involving property damage is less likely to raise your rates than one involving bodily injury. How much of a premium rate increase is going to depend upon whether your insurance company views you favorably.
  • Driving Record: It's pretty simple to understand that the worse your driving record is, the more your insurance company will see you as a high risk. Insurance companies will typically keep any black marks on your record for three years from the date the premium increases.
  • Insurance Company: All auto insurance providers approach claims in their own way. Some raise rates automatically while others take a more conservative approach wherein they weigh all the accident's factors before raising premiums. Still others may forgive an accident altogether. Again, it is largely going to depend on your history and whether you're in good standing with your insurance company.
  • Previous Claims: Making frequent claims on your policy will likely increase your rates. The best approach is to only make a claim when absolutely necessary. Things like minor bumps and scratches may not warrant a claim if you end up paying more for insurance premiums in the long run.