Does your insurance go up after a claim that is not your fault? In short, the answer is no, your insurance coverage is not likely to increase after a car accident you do not cause directly, but there are times when car insurance costs can rise after you file a claim.
Be sure to speak with a North Charleston car accident lawyer about your case.
Most People Do not See a Substantial Change in Insurance Costs
You were in a car accident someone else caused, and you want to ensure that you cover your medical bills and losses. You file an insurance claim with the at-fault driver’s insurance policy, expecting to recoup your losses and move on. Then, you learn your insurance company is raising your rates.
Most of the time, drivers in an at-fault state like South Carolina are not likely to see their car insurance rates increase in a scenario like this. If you are not responsible for the accident, you are not likely to have to pay more for your own insurance protection. That is especially true when you file a claim against the at-fault party’s insurance.
Notably, in states that are considered no-fault states, where drivers are responsible for maintaining their own coverage for most types of accidents, rates are likely to increase. In this situation, you are filing a claim against your own policy to cover your losses since the fault is not a factor considered in most claims. Yet, in South Carolina, this does not apply.
How Does an Accident that is Not Your Fault Increase Your Rate
While most people will not see a drastic increase in their insurance costs if they are in a car accident that is not their fault, they may still see rates increase. How can that happen? It depends on various factors.
Insurance companies determine the rate they charge a policyholder based on various factors, all of which are focused on whether or not you are likely to file a claim. Even though you were in an accident you did not cause, you still filed a claim. That could mean that you are more likely to file another claim at some point in the future.
The exact amount of your insurance rate increase is dependent on many other factors, including the insurance provider’s specific policies. Some indications are that rates can rise as much as 10% after a car accident claim in a non-fault accident, while others only increase rates by 2% when asking if insurance rates go up after an accident. That is still a significant increase to pay for no change in insurance coverage.
Filing a Claim Against Your Insurance Policy
There are some situations in which you must file a claim against your own insurance policy for the damages someone else caused to you. For example, if you are in a car accident in which the other driver does not have insurance or has limited coverage, you may need to file a claim with your own uninsured/underinsured policy. This is a policy you purchased that covers you in the event the other person cannot pay for their losses.
Because this is your policy, your insurance company may determine that you are at a higher risk for filing another claim at some time in the future. That could mean that they raise your rates the next time you renew your coverage. The increase in this number is dependent on numerous factors, including the insurance company’s policies.
Again, that may not seem fair, and it may be possible for you to file a lawsuit against the at-fault party to recover damages so you do not have to file such a claim. It is important to consider all factors when filing a lawsuit and filing a claim against your insurance, and a South Carolina personal injury lawyer can answer your questions.
If a person does not have enough insurance, they may not have the assets to pay for a lawsuit either, which could impact whether or not your insurance goes up after a claim that is not your fault.
How to Protect Your Car Insurance Rates After a No-Fault Accident
When you are in a car accident, your first step is to recover from it physically and financially. That often means pursuing a claim against the at-fault party and holding them responsible for your losses. Doing this simply makes sense to most people because the losses sustained in an accident are much higher than any added cost from insurance increases.
You have insurance to cover you from substantial losses in accidents like this. Even filing an uninsured/underinsured insurance claim after an accident may be necessary to help you recoup your losses with the help of a South Carolina uninsured motorist accident lawyer. If you are unsure if you should do so, speak to your attorney about the options, and keep the following in mind:
- Some insurance companies have accident forgiveness policies. If you have this on your policy from your provider, that initial accident claim is not likely to increase your overall costs. There are different levels of potential accident forgiveness possible, and no single method is applicable to all policies.
- Switch insurance providers if your rates climb. If your insurance company increases your rates to a level that is not applicable to your budget, you may want to seek out quotes from other providers. Often, you may find a rate that is lower, and there is no detrimental outcome from switching to a new provider.
- Open the conversation with your insurance company if you need to do so. Find out if there are other discount programs or ways to reduce risks further that could minimize your risk of having to pay more for insurance coverage. You may also want to consider adjustments to your policy if you are overpaying for coverage.
Set Up a Free Consultation with Our Legal Team for More Insight
Does your insurance go up after a claim that is not your fault? It could, but you can also seek to maximize your recovery of damages and, therefore, offset that increase by filing a robust claim.
Set up a free consultation with a North Charleston car accident lawyer at Shelly Leeke Law Firm to learn what your options may be.
