Getting into a car accident causes many problems that you are forced to deal with, but there’s one question that’s on most people’s minds: If I report a car accident to my insurance, will my insurance rate go up? What if I report an accident that was not my fault? Will I still see an increase in my insurance premium?
These are questions we are asked quite often as car accident injury lawyers. In this article, we will provide answers to some of the most pressing concerns people have about their insurance rates when they get into an auto accident. However, this information is for general purposes only, so we will need to speak with you in person if you have specific questions about your rights and legal options. Our lawyers are here for you day and night, so contact Normandie Law Firm to speak with one of our legal experts.
Why Did My Insurance Rates Go Up after I Report an Accident?
An increase in your insurance rate is inevitable if the accident is your fault. In particular, rates go up the most when you cause an accident that resulted in bodily harm to another individual. How much your premium goes up depends on various factors, but in California, your premium may go up by as much as 69%. This percentage can vary from one insurance company to another, so the increase in your rates ultimately depends on the terms of your insurance policy.
What happens, though, if the accident was not your fault? Can your car insurance company still penalize you with a higher rate even if you are the victim of an auto accident?
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Will My Insurance Premium Increase after a No-Fault Accident?
In theory, it is illegal for car insurance companies to increase a driver’s premium for a no-fault accident. The problem, though, is that California is a comparative negligence state, meaning each party in an accident is assigned a percentage of fault. Under this system, it’s very rare that one side has 0% fault in an accident. That’s why it’s possible for your rates to go up, though it should only increase by a small percentage.
Is There Any Way I can Lower My Insurance Rates?
Regardless of the laws concerning auto insurance premiums, any increase in your monthly bills is an unwelcome prospect after an accident. The good news is that your insurance rates will eventually go back down as long as you don’t get into another accident. However, this process can take 3 to 5 years on average. And if you are involved in another accident during this time period, your rates will likely go up again, making it even harder to bring your insurance rates back down.
Fortunately, you are not without options when it comes to lowering your rates after it was increased by your car insurance company after a no-fault accident. These are not guaranteed methods, but they can still help you to bring your rates down and make your monthly payments more manageable:
- Find out if your insurance company offers a safe-driving program.
Some companies offer safe-driving and accident forgiveness programs, where rate increases are waived or reduced in the event of an accident. The key here is that you’ve had a clean driving record since you’ve had coverage through the company, or you have not been in an accident in many years.
- Lower your insurance deductible.
This is one of the easiest ways to lower the overall amount you pay each month for car insurance. Keep in mind, however, that a lower deductible comes with the risk of having to pay more if something happens to your car in the meantime.
- Adjust your coverage amounts.
Here’s another common sense way to reduce your auto insurance payments. Just make sure to follow your state’s requirements for minimum coverage.
- Shop around.
This will take more time and work than the previous two methods, but it can be worth it if you find a company that’s willing to offer you a better rate.
- Improve your credit score.
It’s possible that your insurance company will reward you with a better insurance rate if you increase your credit score. Please be aware that this is up to each company’s discretion, so you should always check to make sure this is an option with your insurance provider.
One thing you want to avoid after a car accident is cancelling your insurance policy – at least, not until you can find a better rate somewhere else. For one thing, you are legally required to carry auto insurance in the state of California. That means you can face legal action, including heavy fines, if you are caught without insurance coverage for your vehicle.
Auto insurance also provides coverage for property damage and bodily injuries to you, your passengers, and other parties that are involved in an auto accident, whether you caused the accident or not. It’s very dangerous to be without this coverage for any amount of time, so we do not recommend that you cancel your car insurance just to avoid high insurance premiums after an accident.
Can I Sue my Car Insurance Company for Raising My Rates?
Yes, it is possible to sue a car insurance provider for raising your insurance premium after an accident. But you have to prove that the increase in your rates was unlawful. As we’ve mentioned before, you would have to show that you were 100% not responsible for the accident in order to avoid an increase altogether. But even if you are liable to some degree, there may be a safe-driver program that can minimize the overall increase.
Even if such a program is not available, an insurer cannot raise your rates on the basis of illegal circumstances, like discrimination. This may be grounds for a lawsuit against a car insurance company, though you will need extensive evidence and sound legal arguments to prove your case. The auto accident lawyers of Normandie can help you determine if you are eligible for an unlawful rate increase lawsuit against a car insurance company. Contact us for a free consultation if you have questions about your rights after a car accident in California.
Legal Advice from a California Car Accident Injury Attorney
An insurance policy is meant to provide you with coverage in the event of an accident, but there are consequences to being in an accident that you may not have anticipated. This includes an increase in your insurance premiums, even if the accident is not your fault. The lawyers of Normandie are here for you if you are wondering:
- How much will my insurance payments go up if I got into an accident?
- Why did my insurance raise my premiums when it was not my fault?
- Can I file a lawsuit against my insurance company if they unlawfully raised my insurance rates?
- What can I do if I have a lawyer already, but I want a second opinion on my case?
With our many years of experience in auto accident claims, we are more than ready to protect your rights and ensure that you receive fair treatment from your insurance company. This includes taking care of your monetary losses after an accident and making sure that your rates do not go up without legal justification.
To protect your finances as much as possible, we will provide you with free legal services, starting from the initial consultation. Under the Zero Fee Guarantee, our payment comes from winning your case and receiving a fraction of your settlement award. If we don’t bring you payment from a successful lawsuit, you won’t be responsible for any legal expenses, no matter how much time and work we invested in your case.
For a free case evaluation or free second opinion from one of our attorneys, don’t hesitate to give us a call.
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