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Auto insurance after an accident, does it always go up? You just got in a car accident, and now you�re faced with the prospect of car repairs and the hassle of filling claims and scheduling those car repairs. The last thing you want to worry about is your car and auto insurance rates going up. You wonder if your auto insurance premiums will automatically go up because of the accident.
The truth is that your car and auto insurance rates do not always go up because of an accident, but they frequently do. Calculating auto insurance rates is complex. Each insurance company uses its own algorithm to determine the type of risk that each driver presents and assigns rates based on that risk. Car insurance companies consider gender, age, marital status, driving record, claim history, and type of vehicle. A car accident can affect two of the main factors that insurance companies consider when calculating rates: your driving record and your past claims.
One auto accident may not have the same effect on insurance rates as another accident. Depending on the state, car accidents can be classified as �at-fault� or �no-fault.� An accident that was the other driver�s fault should have the least impact on your car and auto insurance rates. Many insurance companies look upon a �no-fault� accident as something that was partially your fault, so they are likely to raise your rates. If you get into a car accident that is determined to be your fault, you will very likely experience a rate increase unless your insurance company offers accident forgiveness.
The amount that auto insurance rates increase depends on may facts. A minor accident that was deemed your fault and that has low-cost claims may raise your insurance rates around 10 to 25 percent. A major accident with expensive claims, traffic violations written, and bodily injuries can even double your auto insurance rates.
If there is good news, it is that the increase in auto insurance rates after a car accident is not permanent. Instead, your car and auto insurance rates are likely to decrease in a few years, depending on the quality of your driving since the accident.
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