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Will My Insurance Rates Go Up After a Car Accident?

insurance rates after a car accident

Car accidents can be a scary and traumatic experience for anyone involved. But beyond the initial shock and injuries, many drivers also have to worry about the potential impact on their insurance rates.

It’s common to wonder, Will my insurance rates go up after a car accident? The answer isn’t always clear-cut, as there are a variety of factors that can come into play.

Keep reading to learn how insurance rates are affected by car accidents.

At Pickford Law, we understand the challenges that come with being involved in a car accident. Our team of experienced Memphis car accident lawyers is here to help you navigate the legal and insurance processes.

If you need assistance with your car accident case, please don’t hesitate to contact us today for a free consultation. Let us help you get the compensation and justice you deserve.

Factors That Determine If Insurance Rates Will Go Up After a Car Accident

Car accidents can have a significant impact on a driver’s insurance rates. However, whether or not rates will go up after an accident depends on several factors.

Here are the key factors that insurance companies consider when determining if rates will increase:

  • Who was at fault — One of the most important factors in determining if rates will go up is who was at fault for the accident. If the driver is found to be at fault, their rates will likely increase.
  • Severity of the accident — The severity of the accident can also impact insurance rates. Accidents that result in significant damage, injuries, or fatalities are more likely to result in rate increases.
  • Insurance company policies — Different insurance companies have different policies when it comes to car accidents. Some companies offer accident forgiveness programs or have policies that do not increase rates for the first accident.
  • Driver’s history — A driver’s history of accidents and traffic violations also determines insurance rates. Drivers with a history of accidents and violations are considered high-risk and may face higher rates.
  • Location of the accident — The location of the accident can also play a role in insurance rates. Drivers in high-risk areas, such as those with high rates of accidents or theft, may face higher rates.

How Insurance Rates Are Affected After a Car Accident

After a car accident, insurance rates can be affected in several ways.

Here are some of the most common ways that rates are impacted:

  • Increase in premiums — One of the most common ways that insurance rates are affected after a car accident is through an increase in premiums. Drivers who are found to be at fault for an accident may see a significant increase in their premiums.
  • Loss of discounts — Some insurance companies offer discounts for safe driving, such as for maintaining a clean driving record or taking defensive driving courses. However, these discounts may be lost after a car accident.
  • Policy cancellation — In some cases, insurance companies may choose to cancel a driver’s policy after a car accident. This is more likely to occur if the driver has a history of accidents or violations.
  • Length of impact — The impact of a car accident on insurance rates can last for a varying length of time. Rates may stay elevated for several years, depending on the severity of the accident and the driver’s history.

What to Do After a Car Accident to Minimize the Impact on Insurance Rates

After a car accident, there are steps drivers can take to protect themselves and minimize the impact on their insurance rates.

Here’s what to do after a car accident to minimize the impact on insurance rates:

  • Collect information at the scene. After a car accident, it’s important to collect information from all parties involved. This includes contact information, insurance information, and details about the accident itself.
  • File a claim properly. Drivers should file a claim with their insurance company as soon as possible after an accident. Be sure to provide all necessary information and follow the proper procedures.
  • Consider legal action if necessary. If the accident was not your fault or you were injured, it may be necessary to consider legal action to protect yourself. A Memphis car accident lawyer can help you understand your options.

By taking these steps, drivers can protect themselves and minimize the impact of a car accident on their insurance rates. However, it’s important to remember that every accident is different, and the impact on insurance rates can vary depending on the circumstances.

For drivers concerned about a car accident’s impact on their rates, it may be helpful to consult with a car accident lawyer who can provide guidance and support. An experienced car accident lawyer can also help you maximize your car accident case to increase your settlement amount.

At Pickford Law, we can help you navigate the claims process after getting into a car accident. We’ll do what it takes to win fair compensation for your damages.

Contact us today to schedule a free case review.

Author Bio

Shalondra Grandberry Pickford

Shalondra Grandberry Pickford is a highly skilled attorney and the founder of Pickford Law. Her legal practice is committed to representing clients on various legal matters, including social security disability, veterans’ disability, estate planning, and personal injury. With over ten years of experience in law and a license to practice in Tennessee and Arkansas, Shalondra is committed to providing personalized and effective legal representation to each client.

Shalondra received her Juris Doctorate from The University of Memphis Cecil C. Humphreys School of Law and is a member of the Tennessee and Arkansas State Bar Associations. She has received numerous accolades for her work, including the exclusive Rising Stars award from Super Lawyers in 2017 and again in 2022.

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