Car accidents can be stressful, especially when you notice your insurance company begins to charge you more after the accident. Many drivers in Georgia are unaware that insurance companies have their reasons for increasing rates after someone gets involved in an accident.
Why Your Insurance Goes up After a Car Accident
If you’ve recently been involved in a car accident, you may notice you have to pay a higher monthly rate on your insurance. The main reason you may see this is that insurance companies measure your coverage based on certain factors. Insurance companies don’t want to provide coverage to a driver who is frequently reckless and gets into accidents often. If you still wish to have coverage, they’ll charge you more to have it, as they don’t want to cover you and your behaviors.
Insurance Companies View You as Risky
If you constantly find yourself in car accidents, you’re showing the insurance companies that you’re a risky driver. You don’t abide by the laws set in place, and you threaten other drivers on the road with your behavior. Insurance companies take notice of your driving history and can determine if you’re too risky. That said, insurance companies may still provide coverage, but they’ll raise your rates first.
Minor and Major Accidents Can Raise the Rates
Whether it’s a small dent in another vehicle or a severe collision, any car accident can result in increased rates. If the insurance company has to pay for the accident, they may increase your rates moving forward, even for small accidents.
However, some insurance companies may offer forgiveness programs. These programs mean your rates won’t increase after your first at-fault accident. Also, if you have a solid driving record free of constant accidents, your rates may still increase, but only slightly. Every insurance company handles its rates differently, so be sure you know exactly what your insurance company’s policies are.
Will My Rates Increase If I’m Not at Fault?
If you’re not at fault for an accident, your insurance rates may not increase. However, this ultimately depends on your insurance policies, as well as the specifics of your situation. If the other driver is ruled to be at fault and their insurance covers the damage costs, your rates shouldn’t be changed.
If the driver doesn’t have insurance but is at fault, then your rates may increase if your insurance company cannot recover the costs of the damages.
How Much Can Rates Increase?
Increasing rates is up to the insurance company, and they can determine how much they’ll increase your rates. If you experience a minor accident, you may see your rates only increase by roughly $10 a month. However, if you constantly get involved in accidents, or your accident is severe, your rates could increase to over $100 a month.
Several factors influence how much your raise, including:
- The severity of the damages
- Cost of the claim
- Driving and accident history
- Qualifications for forgiveness programs
After considering these factors, the insurance company will determine how much to raise your rates should you get into an accident.
Let a Qualified Law Office Help
At Lamar Law Office, LLC, our team has several years of experience working with clients who have been involved in car accidents in Georgia. Insurance as a whole can be difficult to understand and navigate, but we can help you make sense of it all. We’ll work with you every step of the way and provide legal advice at your request. While you recover from any injuries you’ve sustained, we’ll talk with the insurance company to reach the best outcome possible.
Contact us today to learn more.