Being involved in a car accident is never easy, especially when you’re left worrying about whether your insurance premiums will increase—despite not being at fault. While insurance is designed to protect you in such situations, the aftermath can be confusing and stressful. Understanding how to navigate these challenges can help you safeguard your finances and rights.
At Staver Accident Injury Lawyers, P.C., we’ve helped countless clients resolve issues after an accident, including dealing with rising insurance rates. If you’ve been hit and need guidance, call us at (312) 236-2900 for a free consultation.
It might seem unfair, but insurance premiums can increase even if you weren’t at fault in an accident. While each insurance company has its own policies, there are several common reasons why this happens:
Insurance companies evaluate risk based on your driving history. Even if you weren’t responsible for the accident, filing a claim can signal to your insurer that you’ve been involved in an incident. From their perspective, this increases the likelihood of future claims, leading to a potential premium increase.
Insurers may view you as a higher-risk customer if you’ve filed multiple claims in a short period—whether for minor accidents, hit-and-runs, or weather-related incidents. This is true even if none of the incidents were your fault.
Every claim filed costs the insurance company money, not just for payouts but also for administrative expenses. Insurers may adjust your rates after a claim to offset these costs, especially if they paid out on your behalf or needed to investigate the accident.
Your insurer might also raise rates based on where the accident occurred. For example, if the accident happened in an area with high traffic or frequent collisions, they may view your driving environment as riskier.
In states with no-fault insurance laws, your insurance provider may be required to pay for medical bills or other damages regardless of fault. Even if you weren’t responsible, the payout could trigger a review of your policy, leading to higher rates.
While you can’t control all these factors, there are ways to reduce the chances of a premium increase.
Immediately after being hit, focus on gathering as much evidence as possible. This includes:
Having solid documentation will support your claim and help demonstrate that you weren’t at fault, which can reduce the chances of unjustified premium increases.
A police report is an official record of the accident and often includes an assessment of fault. This document is critical when dealing with your insurance provider or pursuing compensation from the at-fault driver. Without it, your insurance company may rely on incomplete or biased information to review your claim.
Even if you believe the other driver’s insurance will cover the costs, you should still report the accident to your insurer. Many policies require prompt notification of accidents, even if you’re not at fault.
When communicating with your insurer:
Consulting an attorney before filing a claim can provide clarity if you’re concerned about how your rates might be affected.
The impact on your premiums often depends on whether your state follows an at-fault or no-fault system:
Knowing these laws can help you anticipate how your insurance company may handle your case.
Insurance companies often prioritize their profits, sometimes at your expense. Working with a skilled attorney can help protect you from unnecessary rate hikes and ensure you receive the compensation you deserve.
If you’ve been hit and are worried about your insurance premiums increasing, let us help. Our experienced Chicago car accident attorneys have years of experience handling insurance claims and navigating complex policies. We serve clients throughout Chicago, including Aurora, Naperville, Joliet, and more.
Call us today at (312) 236-2900 to schedule a free consultation. Together, we can help you move forward with confidence.
When you’re fighting for maximum compensation, we know what it takes to get it.
