How Much Does Your Insurance Go Up After an Accident?

Your car insurance costs can go up if you are involved in an accident and found at fault. The amount that your insurance goes up depends on multiple factors, including the cause of the accident and whether any other party was at fault. Some reports indicate that an accident can raise your rates as much as 40 to 50%.

There is no specific value that impacts all insurance increases. Each company sets its own rules and guidelines, and in some cases, policy features may reduce costs. However, in all cases, working with a Chicago accident lawyer could help you avoid fault and reduce the risk of your insurance rates increasing.

Potential Increases in Rates

On average, your liability insurance costs can increase by 40-50%. This implies that if you are found at fault for the accident, the insurance company will determine that you are a higher risk to them.

Those who have filed a claim once are more likely to file a claim again. That increases the costs they charge you. If you’ve experienced this, a skilled car accident attorney can review the police report and insurer assessment to challenge inaccurate fault assignments.

Factors That Play a Role in How Much Your Policy Cost Increases

No single rule applies to every situation. Each insurance company has the ability to set its own terms for these updates to costs and even whether it will continue to provide insurance to you. Some of the factors that may play a role include:

• Whether you are fully at fault. If you are fully at fault for the accident, the insurance company will have to pay more. If the insurance company says another person is at fault even partially, that reduces the amount of compensation they pay. If you were not at fault at all, most insurance companies do not raise your costs.
• Your previous driving record. If you have a history of filing claims due to accidents or numerous points on your license, that increases the risk to the insurer. For example, if you have numerous previous claims in which you were at fault and the insurance company had to pay for them, the insurer will likely raise your costs.
• Your policy features. Some insurance policies have fault forgiveness features that restrict when or how much the insurance company will apply rate increases. For example, if this is your first accident and the insurance company offers accident forgiveness, they may not increase your costs at all.

It’s important to understand your policy’s terms and conditions and protect your financial well-being. To do that, you need to avoid being blamed for an accident you didn’t cause. Partnering with a knowledgeable car accident lawyer in Chicago can make all the difference in presenting a solid claim.

Hire a Chicago Accident Attorney to Guide You Through the Legal Process

If you are involved in an accident and are either partially or fully at-fault, a Chicago car accident lawyer can help you. Your car accident attorney will gather evidence and investigate the case to determine who is at fault. They will try to reduce claims made against you.

If the accident lawyer can demonstrate you were not at fault through evidence and prove that to the insurer or the courts, you may not see an increase in your insurance coverage in any way. Ultimately, that is the safest way to protect your rights and financial well-being over time.

To protect your finances and prevent unfair rate increases after a crash, contact a Chicago car accident attorney at Taxman, Pollock & Bekkerman today at (312) 586-1700 to schedule a free consultation.