Will my rate go up if I’m not “at-fault” in an accident?

In a perfect world, no one would have to pay for other people’s mistakes. Unfortunately, that’s not always the way things work. For example, when you get into an auto accident, and it is clearly the other person’s fault, there is a chance your car insurance rates will go up. This is unless you live in either California or Oklahoma, in which case such increases are prohibited.

Who Pays For The Accident?

One major factor in car insurance rate increases is who pays for an accident. If both parties stop and exchange information like they are supposed to, and one person is clearly at fault, the damages are normally paid by that person’s insurance. However, if the at-fault person doesn’t take responsibility, or their insurance doesn’t cover damage to your vehicle, and you have to make a claim against your own insurance company, there is a good chance you will see some increase on your next billing cycle. This is one reason why many people start shopping around for a new car insurance provider after that fender bender.

Is Raising Rates Fair?

A lot of people would claim that it is not fair to raise rates if an accident wasn’t your fault. What matters, however, is what your policy says. People like to assume that they won’t be in an accident, and they certainly won’t be at fault, but that isn’t always the case. When you are shopping for insurance, it is important to ask more questions than what is the rate. Many insurance companies raise rates a bit, even if an accident is not your fault, so this is an important question to ask when shopping.

Another thing that some insurance companies will look at is your history of making claims. If you file a claim over every scratch, it is more likely that insurance companies will look for any reason they can to raise the rate. In any contract it is important to look at all the terms, not just the sticker price before agreeing to anything.

What if My Rate Does Go Up?

If your car insurance rate goes up, and it is not something you just want to accept, you may want to shop for a new provider. At Rate Navigators, we can help with that. We can look at different providers based on your driving record and other factors and find you quotes from multiple insurance companies. You can investigate these offers and decide if you want to switch to another option or stay with the carrier you have. If you don’t want to change companies, it is also possible to let your current provider you are shopping and see if you can lower or prevent an increase — it never hurts to ask.

To learn more about shopping for auto insurance, contact Rate Navigators today!