Yes, after you get into an accident, your car insurance rates will likely go up. The amount your monthly payment increases can depend on several different factors.
At Simmrin Law Group, our car accident lawyers in Los Angeles explain the different factors and how our legal team can help after you’ve been in a car accident. Our team is here to help you after your insurance rates increase due to an accident.
Factors That Could Increase Your Insurance Rates After a Los Angeles Car Crash
After getting into an accident, car insurance companies view you as a liability and, in turn, will increase your insurance rate. While this is unfortunate, and insurance is expensive, to begin with, it’s good to know what factors can increase your rates so you can discuss these with one of our Los Angeles car accident attorneys and get advice. Common factors that could result in a payment increase include:
At-Fault Determinations
Insurance companies thoroughly review all documents pertaining to how the accident occurred, including the police report, witness statements, evidence of traffic violations, damage to the vehicles, and injury claims. They will assess whether actions by the insured violated any statutes in the California Vehicle Code, such as running through a red light or stop sign, illegal lane changes, exceeding the speed limit, distracted driving, or DUI.
Being found primarily at fault, especially if cited by law enforcement, will result in the largest increase in rates compared to other factors. Policyholders can challenge the determination by requesting an internal appeal with their insurer, providing their evidence collected from the accident scene, or hiring an experienced car accident attorney to argue the other driver was more at fault under California liability laws.
Severity of Damages
Even minor accidents under $2,000 may only lead to a small, temporary increase. However, more substantial repairs over $5,000 often trigger higher and longer-term surcharges.
Rates rise exponentially higher for total losses where the salvage value exceeds repair costs. This is because total losses represent the maximum payout an insurer has to pay.
Medical bills and injury claims also increase rates, especially when you request over $1,000 from the insurer. At this level, insurance companies see the crash as more high-risk and costly when factoring in future potential claims.
Location of Accident
Insurers analyze accident statistics reported to the California Highway Patrol to identify intersections, roads, or specific areas with frequent crashes. Being involved in an accident in one of these high-incident locations raises red flags about increased risk levels.
This is due to factors like road design, traffic volumes, speed limits, and the conduct of other drivers frequenting that territory. It signifies a hazardous environment with a higher probability of future claims appearing. Rates rise as insurers see continued exposure to such risky places as more threatening to their financial obligations.
Prior Accident History
Just one minor crash years ago may only carry a temporary small surcharge. However, multiple at-fault incidents packed within a shorter time frame, such as two in three years, indicate an ongoing pattern of dangerous driving necessitating higher long-term premiums.
This shows poor driving decisions have not been corrected as the behavior keeps resulting in avoidable collisions. Insurers expect a driver with repeating mishaps to remain high-risk without intervention or change likely.
How Much Could Your Monthly Insurance Payment Increase?
The amount of your payment increases depending on your specific situation, but a Nerdwallet analysis can give you some insight if you have one of the major insurance companies. Nerdwallet examined the average monthly payment increase after a person was at fault for an accident, and these are the results:
- State Farm rates increased an average of 28% ($1,431 to $1,833) after an at-fault accident, reflecting a higher premium following the crash.
- Allstate rates jumped an even larger 41% ($3,110 to $4,405) for drivers at fault for accidents, showing significant consequences on future insurance costs.
- Progressive rates also rose by 46% ($2,075 to $3,029) for at-fault motorists as their high-risk status necessitated substantial premium markups.
- Geico imposed nearly a 60% rate hike on at-fault drivers, switching from $2,009 to $3,216 average premiums after an accident.
- USAA drivers saw rates increase 42% from $1,120 to $1,590 as an accident resulted in steep rate consequences despite originally low premium costs.
If you’re looking for a way to save money on your car insurance payment, Nerdwallet suggests switching to a cheaper car insurance company after your accident. However, switching insurance companies can be a stressful task right after an accident. Our Los Angeles car accident attorneys at Simmrin Law Group can help you figure out the best action to take after your accident.
For a free legal consultation, call (626) 709-2523
How a Car Accident Attorney Can Help After Your Rates Increase
If your car insurance rates go up significantly following an accident, speaking to an experienced car accident lawyer in Los Angeles can benefit you. Even if the increase seems justified based on the circumstances, an attorney can review your case closely and identify potential avenues for rate reduction or appeal. Here are some ways we can help:
- Challenge at-fault determination: Our Los Angeles car accident attorney can analyze accident reports and liability assessments for defects. Misinterpreted evidence or violations of vehicle code may allow the fault to be contested.
- Dispute severity designation: Repair costs, injury claims, or accident location designations used to justify rate hikes could prove inaccurate or inflated.
- Request internal insurance appeal: Most companies offer an appeals process, but having legal representation strengthens the case made to obtain a fairer premium.
- File complaint with state regulator: Rates that unlawfully or unreasonably penalize drivers based on inaccurate analytics may warrant regulatory investigation.
- Negotiate payment plans: Working with insurers, lawyers can arrange installment plans for covering premium increases to prevent policy cancellation.
- Consider legal action: In rare situations involving improper claims handling practices, pursuing litigation to address violations becomes an option.
Learn More About Increasing Insurance Rates
Car insurance is already expensive before a crash, so when your rates go up after you’ve been injured, you may feel at a loss for what to do. Our Los Angeles car accident attorneys at Simmrin Law Group can help you get through this stressful time.
Contact us for a free consultation and learn more about how we can help you after an accident causes your car insurance rate to increase.
Call or text (626) 709-2523 or complete a Free Case Evaluation form