Reasons Why Car Insurance Rates Go Up Without an Accident
- Changes in Driving Record: Driving history plays a major role in car insurance rates. Even if you haven’t been in an accident, tickets such as speeding tickets or traffic violations can cause rates to rise.
- Changes in Vehicle or Vehicle Usage: New cars are generally more expensive to repair and replace while using your car more frequently such as for longer commutes can lead to a higher risk of accidents due to being on the road more.
- Changes in Credit Score: In many states, insurance companies will utilize your credit score as part of the underwriting process.
- Increase in Local or National Rates: Insurance companies may raise rates across the board due to changes in the broader market or an increase in local or national accident and crime rates. For example, natural disasters, uninsured drivers, insurance fraud, and more can cause an increase.
- Changes in Drivers: Adding a new driver to the policy can raise insurance rates especially if the driver is young or inexperienced.
- Inflation: The overall cost of living has been increasing each year and with that, insurance companies may adjust premiums to ensure they can cover potential claims. This is especially true for modern cars with high-tech features and advanced safety systems.
- Changes in Location: The address where you keep your car “garaged” can increase your rate. A change in ZIP code may cause your insurance costs to rise.
- Loss of Discounts: Insurance rates may increase if you no longer qualify for discounts. Common discounts include safe driver discounts, going paperless, or bundling policies.
- Changes in State Laws or Regulations: States may enact new laws that increase the minimum coverage requirements, higher liability limits, or stricter uninsured motorist requirements.
Why Does Car Insurance Go Up After an Accident?
Insurance companies evaluate the risk associated with insuring a driver and if you’ve been involved in a car accident, the insurer may see you as a higher risk for future claims.
When accidents occur, insurance companies may need to cover damages, medical bills, or repairs. The financial payout associated with an accident puts a burden on the insurance company and, as a result, this can lead to increased rates to recover those expenses and prepare for future claims.
Learn more about dealing with insurance companies after an accident
Does Insurance Go Up If Not at Fault After an Accident?
Yes, insurance rates can increase even if you are not at fault in an accident. When determining rates, insurance companies look at overall risk and examine various factors including your claims history. If you were involved in an accident, even if you are not responsible, it can indicate a higher likelihood of future accidents.
Can Car Insurance Increase Without Notice?
Insurance companies are required to notify you of any changes in your rates. Oftentimes, this notice is included with the policy renewal, giving you time to shop around for other options if you choose to.
In other instances, such as increases due to driving records, or adding drivers, the insurance company will likely update you immediately or within a few days.
Most of the time you can expect these notifications to come in the form of an official letter sent to through mail or email that includes a revised billing statement and/or a policy update.
DM Injury Law: Your Car Accident Attorneys
If you’ve been injured in a car accident, a skilled personal injury attorney can help you seek the compensation you deserve. Navigating the aftermath of an accident can be overwhelming, especially when faced with rising insurance premiums.
Consulting a lawyer can help you understand your rates and ensure you aren’t being penalized for an accident that isn’t your fault. Don’t hesitate to contact our team for a free consultation to discuss your case.