Will My Insurance Rates Go Up After An Accident?
If you are unfortunate enough to have an accident, you may be surprised to see that your insurance premiums suddenly skyrocket. There are various reasons why this happens.
If you think about it, your insurance company is insuring you based on your driving history. If you have proved to be an excellent driver with no claims against your name, they will consider you to be a low-risk candidate and be able to keep your rates competitive.
If, however, you do have an accident they will start to consider you as a higher risk driver and they will increase your rates to potentially cover and further pay-outs they will have to endure, should you have any further accidents or insurance claims.
Fault vs Non-Fault
If you were not to blame for what happened, then you will usually be lucky enough to keep your rates the same. Even if you are injured in the accident and file an insurance claim to cover your medical care, your insurer may still be willing to keep your rates competitive.
But, if you are found to have been at fault in any way, the situation becomes more complex. Your carrier could decide to raise your rates based on a number of differing factors.
If you were totally at fault in a crash then you can absolutely expect your rates to rise. If you are found to have intentionally caused an accident, your carrier could even cancel your insurance cover completely.
Multiple Offenders
If you have multiple car accidents, your car insurance rates will increase significantly. If you have been involved in accidents that also resulted in serious charges such as DUI or reckless driving, expect major changes to your car insurance rates.
If you face criminal charges as a result of an accident, you can expect to see your rates triple in price as you become considered to be a “high-risk” driver by insurance providers.
How Does This Effect Your PIP Coverage?
Because Florida law requires everyone to have a basic insurance coverage called “personal injury protection,” or “PIP.”, your PIP rates should not increase even if you are involved in a crash that is believed to have been your fault. This is because PIP doesn’t make determinations based on fault.
What About “Accident Forgiveness”
Because insurance providers want to retain their customers, many will offer what they call “Accident forgiveness” incentive programs. Accident forgiveness allows you to avoid having your premium increased if you are in involved in a one-off accident.
The accident will still remain on your driving record though, the details of which will be easily available if you ever choose to switch insurance companies.
How Much Of An Increase Should I Expect To See?
This, of course, will depend very much on the insurance provider you use, and the nature of the accident. But as a guide, you could see our rates rise between 10-40% after a first at-fault accident, and subsequent claims could see them skyrocket as much as 150%.
In Summary
Even for residents living in a no-fault state like Florida, you may still see an increase in your monthly premiums following an at-fault accident. If the accident was considered to be very serious, they could spike substantially.
Advice On Insurance Rate Increases From The Experts At Sena Group
Our experienced and highly knowledgeable insurance agents will be able to offer you advice on what to expect following a crash. Call us today at 561-391-4661 to find out more.
For more information about how The Sena Group can help you with any
of your insurance needs, please contact us at 561-391-4661.
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The Sena Group
6501 Congress Ave., Ste. 100
Boca Raton, FL 33487
561-391-4661
