How a Car Accident & Tickets Affect Your Insurance Rates
Feb. 3, 2020
One of the main concerns for drivers is whether an accident or a speeding ticket. The answer is that both have the potential to seriously increase your car insurance rates.
How Car Accidents Affect Your Insurance Rates?
Generally, you will not see an increase in your rates until you renew the policy. That said, getting involved in an accident does not necessarily mean you will see an automatic increase in your insurance rates. Minor fender benders, for example, typically do not result in rate hikes. Additionally, if you were not at fault for the accident, your premium will likely remain the same.
Why Insurance Rates Increase
Insurance rate premiums tend to go up after a major at-fault accident. However, insurance companies also consider a driver's record. If you have an impeccable driving record, an accident might seem like an anomaly rather than the norm. However, if you have a safe-driving discount on your policy for remaining accident-free, you will likely lose it, resulting in a rate increase.
If you have a particularly colorful driving record, you can most certainly expect a rate increase when you renew your car insurance policy.
How Much Will My Rates Increase?
The claim type and the amount of damage involved will generally dictate how much your rates go up. For example, if the claim type is an at-fault bodily injury, your rates can increase by as much as 30%. For a comprehensive claim under $2,000, your rates might only increase by about 3%. However, every insurance company varies.
How Speeding Tickets Affect Your Insurance Rates?
In most cases, a speeding ticket will increase your insurance rates, but exactly how much it goes up will vary depending on a number of factors, including which insurance company you use.
How much your insurance will go up after a speeding ticket also depends on how many other violations are on your record, how fast you were going, how your insurer surcharges for a speeding ticket, and your state laws, among other factors. But in general, expect your rates to increase 20% to 30%, on average, according to a rate analysis done by Insure.com. That's about $280 to $430 extra a year.
How Long Will the Rate Hike Last?
Rate hikes do not last forever, but they do follow drivers around long enough to become an inconvenience. Depending on the severity of the accident and the costs involved, your rate hikes might last for a considerable amount of time. However, they will gradually decrease each year you go without getting involved in another accident. In many cases, over a span of three years, an accident will cease to impact a driver's insurance rates as long as no other accidents occur.
Another factor in accident-related rate hikes is, surprisingly, age. Although car insurance is usually higher for new, young drivers, this same demographic usually faces smaller rate hikes than older drivers. The discrepancy in rate hikes is due to the fact that insurance companies already take the risk factor of younger drivers into account when selling a policy.
Contact an Experienced Personal Injury Attorney Today!
If you were recently injured in an accident, you need an experienced attorney to advocate on your behalf and stand up to the insurance company. At Cornell Injury Law, our personal injury team has the knowledge and insight necessary to help you smoothly navigate your case, no matter how complex it may be. We will use our experience and skill to conduct a thorough investigation, negotiate, and litigate for you in court, if necessary. Our goal is to ensure you receive the compensation you deserve, so you can recover from your injuries without bearing the financial burden.
Reach out to our law firm today to set up a free initial consultation with our trusted personal injury attorney!