Will A Car Accident Increase My Insurance Rates?
In many cases, yes. If you've been in a car accident, your insurance rates may increase, but the extent of the hike depends on factors like fault, driving history, and your insurer’s policies. A lawyer can help you challenge fault determinations and minimize rate hikes. If you’re concerned about rising insurance costs, contact our experienced Los Angeles car accident lawyers today.
Factors That Influence Insurance Rate Increases
Fault in the Accident
One of the biggest determinants of whether your insurance will go up after a car accident is fault. If you’re found at fault, expect an increase. If the other driver is at fault, your rates may stay the same, depending on your insurer.
Severity of the Accident
The higher the claim amount, the greater the chance your rates will increase. Significant damage and injuries raise insurance costs more than minor fender benders.
Your Driving History
A clean driving record can help limit the increase. If it’s your first accident, your insurer may be more lenient than if you have multiple claims or violations.
Accident Forgiveness Programs
Some insurers offer accident forgiveness, which prevents rate hikes for a first at-fault accident. Check if your policy includes this benefit.
Policy Renewal Period
Insurance rate increases typically take effect at renewal. If your rates are set to rise, use this period to shop around for better coverage.
California Regulations on Insurance Rate Increases
Proposition 103: Protecting Drivers
In California, insurance rate increases are regulated to prevent excessive hikes. Proposition 103 ensures:
- Insurers must justify rate increases.
- Public participation in rate-setting.
- Your driving safety record is the main factor in determining rates.
California Insurance Code Section 1861.02
- Under California Insurance Code Section 1861.02, if you’re at fault, your insurer can increase your premium by up to 20% above a clean-record driver’s rate.
- Insurance companies can only increase premiums if damages exceed $1,000 or injuries occur.
The Long-Term Impact on Your Insurance After a Car Accident
Duration of Rate Increases
Typically, rate increases last 3-5 years before returning to normal—provided you maintain a clean driving record.
Improving Your Insurance Standing
Reduce your long-term rates with these strategies:
- Maintain a clean driving record.
- Take a defensive driving course.
- Bundle insurance policies for discounts.
- Shop around for better rates as time passes.
What If You’re Wrongly Assigned Fault?
Being incorrectly deemed at fault can unfairly raise your rates. Fault determination relies on:
- Police reports
- Witness statements
- Physical evidence
- Traffic laws
Steps to Challenge Fault Determination
- Document everything – Take photos, videos, and get witness contact details.
- Obtain the police report – Check for errors or omissions.
- Notify your insurance company – Dispute the determination.
- Seek legal help – An attorney can fight to correct the fault assessment and prevent unjust rate hikes.
Find the Right Car Accident Lawyer in Los Angeles
While insurance rate increases after a car accident are common, they are not inevitable. By understanding California’s insurance laws, knowing your rights, and working with experienced attorneys, you can reduce the financial impact.
At Tulekyan Law, we’re dedicated to protecting your rights. Don’t let insurance worries add stress after an accident. Contact Tulekyan Law today for a consultation and let us fight for the best outcome for you.
