Common Fears of Filing a Claim with Your Insurance After a No-Fault Accident

According to statistics, any motorist will likely be involved in a car accident at some point in their life. The chance that one of these accidents will result in major property damage or bodily injury is likely.
For those who have been involved in a no-fault accident, you can’t help but wonder if filing a claim with your insurance will increase your premiums or ruin your driving record.
Make sure you read the fine print when purchasing insurance. Each insurance company has rules about the types of accidents that will trigger a rate increase, regardless if you are at fault or not.

When To Expect Rates to Change

Most understand that if they are involved in an at-fault accident, they expect to see an increase in their insurance premiums. However, your driving record is a major factor in determining your premium. Meaning, that multiple accidents can have a huge impact on your policy.
Changes in rates will vary depending on the state you reside in. On average, rates can go up anywhere from 12 percent to 80 percent.
For example, motorists in California, Minnesota, Louisiana, and Michigan get slammed with the highest increase rates. However, New York, Hawaii, South Carolina, and Alaska have the lowest recorded rate increase after a car crash.

Change in Insurance Rates after an Accident

Unfortunately, at-fault accidents will affect the rate that you pay for car insurance. To explain, car insurance is all about risks. Regardless of fault, and the amount of accidents you have in your driving record, there is a higher chance that your could be involved in another accident. In other words, such drivers cause a higher risk to ensure.
In addition, even if you aren’t at-fault in a crash, your insurance company can still be liable for your injuries or damage after an accident. As a responsible driver, you have auto insurance to protect yourself in the event of an accident.
Above all, these situations increase the cost of doing business for the insurance company. In fact, that cost normally gets passed on to the customers.
Therefore, it is recommended that you read the fine print in your policy, to determine if filing a claim with your insurance after an no-fault accident will increase your rate.

The Good News

If you are able to file against the at-fault party’s policy, you are less likely to see an increase in your insurance statement. Accordingly, states such as California and Oklahoma are the only two states that disallow insurance companies to increase rates after a no-fault accident.
At worst, you could see a surcharge in your statements if you file a certain amount of claims during a specified period of time.
Minor accidents such as fender benders may not automatically burn a hole through your wallet. Especially, if you have a history of safe driving and been a policyholder for many years.
Some insurance policies include accident forgiveness, which rewards safe-driving by comparing your driving record as a whole. As a result, not increasing your rate per accident rather than your driving experience through the years.

Contact an Attorney After a No-Fault Accident

Losses relating to a car accident can leave you and your loved ones with unexpected expenses. After an accident, contact the skilled attorneys at Sweet Lawyers. Our office has seen thousands of cases and we know what it takes to obtain the maximum compensation.
If you have been injured by the negligent or reckless actions of another person, let us help you get your life back together. Contact us today for a free case consultation at (800)674-7854.


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