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Will My Car Insurance Rate Go Up After an Accident?

Posted on November 21, 2022

The last thing anyone wants to worry about after a vehicle accident is that their insurance premiums may go up. However, the fact of the matter is that vehicle accidents could certainly result in a change to premiums. Here, we want to examine why insurance premiums go up after accidents as well as how much your insurance could go up if you or a loved one have filed a car accident claim.

Why Insurance Premiums Tend to Rise After an Accident

In most situations, premiums will only go up for individuals involved in an accident if they are found to be the at-fault party for the incident. Why is this the case?

Well, after an individual is found to be responsible for causing an accident, the insurance carrier will now deem that individual a higher-risk driver, meaning they expect that you will be more likely to file a claim in the future than someone who has not been an accident.

Insurance carriers evaluate risk all the time. They do this when you first apply for an insurance policy, and some of the factors they examine are the driver’s age, driving history, how long they have been driving, the type of vehicle they have, their geographic location, the claims history, and more. These insurance carriers use complex algorithms to determine how much a person’s premiums will be, and after an at-fault accident, the algorithm will almost certainly assess an individual as a higher risk.

How Much Will Insurance Premiums Rise After an Illinois Car Accident?

The total amount that a person’s premiums will rise after an accident will depend on various factors. The algorithm will again reassess the same factors we just mentioned above, but will now factor in the accident.

When we examine information available from bankrate.com, we can see that, on average, premiums for full coverage insurance went up an estimated $750 after an accident. For example, suppose an individual was already paying $1,000 a year and insurance premiums. Based on the average estimate for a premium rise after an accident, the new annual premium would amount to $1,750. This equates to approximately $62 more each month that a person would have to pay.

According to another financial website, WalletHub, insurance premiums go up by an average of 50% after an accident.

What You Can do if Your Premiums go Up

If you have been involved in a vehicle accident and your premiums are about to increase, we suggest that you shop around to look at rates at different insurance carriers. Often, individuals get stuck on one insurance carrier and do not think about moving to another one. However, individuals are regularly able to find better deals when they begin to compare rates. Additionally, many insurance carriers do offer various types of discounts that you could take advantage of.

If you decide to go to a new insurance carrier, they will know about your vehicle accident. Not only do you have to tell them about your driving history, but lying on official forms and documents is never a good idea. Let the new insurance carrier know all the information and see if you can get a rate that’s lower than what you are already paying.