Does My Insurance Premium Increase When I’m In An Accident?

In today’s fast-paced world, car accidents have become an unfortunate and inescapable part of life. The National Highway Traffic Safety Administration reported a staggering 6 million car accidents in the United States in 2019 alone, leading to grievous injuries, property damage, and financial loss.

One critical financial repercussion of a car accident is the surge in car insurance premiums. So, how much does your car insurance go up after an accident? Let’s explore the factors that contribute to this increase.

A multitude of factors can cause your car insurance premiums to soar after an accident.

How serious was the accident?

The intensity of the accident holds considerable weight in determining the rise in your insurance premium. A severe collision resulting in remarkable property damage, injuries, or fatalities will undoubtedly lead to a more significant hike compared to a minor fender-bender.

What does your driving record look like?

Your driving history also plays a vital role in shaping the increase in your car insurance premium. A record marred by multiple traffic violations or accidents inevitably results in a more substantial increase than a spotless driving history.

Who is your insurance company?

Insurance providers have varying approaches when it comes to handling accidents. While some may provide accident forgiveness policies, sparing you from a premium hike after your first mishap, others may amp up your rate even over trivial accidents.

How much insurance coverage do you have?

The extent of your insurance coverage can significantly affect the post-accident rise in your premium. Having comprehensive coverage that includes collision and liability insurance is likely to cause a more significant surge than if you only carry liability coverage.

Where in Texas do you live?

Lastly, your geographic location can impact the increase in your car insurance premium. Insurance companies will account for local accident rates as well as the probability of theft or vandalism when adjusting your premium.

So how much will my insurance actually go up?

The amount that car insurance typically goes up after an accident can vary depending on the above-mentioned factors. However, according to a study by InsuranceQuotes, your premium could increase by as much as 76%! That means if your current 12-month premium is $1,000, you can expect to pay an additional $760 per year after an accident.

Keep in mind, your own premium hike could be less, depending on your accident’s circumstances and your insurance provider. You might experience a jaw-dropping 50% (or more) increase with some providers or breathe a sigh of relief with a modest 10% (or less) bump from others.

Will my rate ever go back down?

Well, that again varies based on your insurer and the specifics of your accident. You can generally anticipate the increased rates to hang around for three to five years. Still, there’s a silver lining: some providers might only raise your rates for a year or two. But beware – others could keep them elevated for up to a whopping ten years!

If you’ve been involved in a car, truck, or motorcycle accident, contact us today!

Named one of the “Best Car Accident Lawyers in Dallas” by Expertise.com, Brian Brunson is Texas personal injury lawyer who is dedicated to helping clients who have suffered a car, truck, or motorcycle injury through the negligent or wrongful conduct of other drivers. In addition, his professionalism is unmatched and his 5-star, A+ rating by the Better Business Bureau and client reviews speak for themselves.

We proudly serve the Dallas-Fort Worth metroplex and surrounding areas, our office supports the legal needs of a wide variety of clients. Let the Law Office of Brian Brunson be your advocate in your time of need and help you put your life back together. If we can’t win or settle your case, you don’t pay a dime! We know it can be daunting to take that first step after you’ve been hurt. Contact Brian Brunson today via email or call us toll-free at 1-844-41-WRECK. We can help, when no one else will.