Car accidents are an unfortunate reality of modern life. According to the National Highway Traffic Safety Administration, there were over 6 million car accidents in the United States in 2019 alone. These accidents can result in serious injuries, property damage, and financial losses.
One of the most significant financial impacts of a car accident is increased car insurance premiums. Here, you can learn how much car insurance typically goes up after an accident and what factors influence the increase.
Factors That Influence the Increase in Car Insurance Premiums
Several factors can influence the increase in car insurance premiums after an accident.
These factors include:
The Severity of the Accident
The accident’s severity plays a significant role in determining how much your car insurance premium will increase. If the accident resulted in significant property damage, bodily injury, or death, your premium would likely increase more than if the accident was a minor fender-bender.
Your Driving Record
Your driving record is another important factor that can influence the increase in your car insurance premium. If you have a history of traffic violations or accidents, your premium will likely increase more than if you have a clean driving record.
Your Insurance Provider
Different insurance providers have different policies regarding accidents. Some providers may offer accident forgiveness programs that allow you to avoid a premium increase for your first accident, while others may increase your premium even for a minor accident.
Your Insurance Coverage
Your insurance coverage level can also impact how much your premium will increase. If you have comprehensive coverage that includes collision and liability insurance, your premium will likely increase more than if you only have liability coverage.
Your location can also play a role in determining the increase in your car insurance premium. Insurance providers consider the frequency of accidents in your area and the likelihood of theft or vandalism.
How Much Does Car Insurance Typically Go Up After an Accident?
The amount that car insurance typically goes up after an accident can vary depending on the abovementioned factors. However, according to a study by InsuranceQuotes, the average increase in car insurance premiums after an accident is about 31%. If your current premium is $1,000 per year, you can expect to pay an additional $310 per year after an accident.
It’s important to note that this is just an average, and your premium increase may be higher or lower depending on the circumstances of your accident and your insurance provider. Some providers may increase your premium by as much as 50% or more, while others may only increase it by 10% or less.
How Long Does the Premium Increase Last?
The length of time that your car insurance premium increase will last can also vary depending on your insurance provider and the specific circumstances of your accident. You can expect the increase to last for three to five years. However, some insurance providers may only increase your premium for a year or two, while others may keep the increase in place for up to ten years.
How to Reduce the Impact of a Car Accident on Your Insurance Premium
While there’s no way to completely avoid an increase in your car insurance premium after an accident, there are some steps you can take to reduce the impact.
Choose a Higher Deductible
You can lower your monthly premium by choosing a higher deductible. While this won’t reduce the amount of the premium increase after an accident, it can help offset some of the cost.
Shop Around for a New Provider
If you’re unhappy with the premium increase from your current insurance provider, consider shopping around for a new provider. You may be able to find a provider that offers lower premiums or more lenient policies for accidents.
Take Advantage of Accident Forgiveness Programs
Some insurance providers offer accident forgiveness programs that allow you to avoid a premium increase for your first accident. If your provider offers this program, take advantage of it.
Consider Bundling Your Insurance
If you have multiple insurance policies, such as home and auto insurance, consider bundling them with one provider. Many providers offer discounts for bundling, which can help offset the cost of a premium increase after an accident.
Improve Your Driving Record
While it won’t immediately impact your current premium increase, improving your driving record can help lower your premiums over time. By avoiding traffic violations and accidents, you’ll be seen as a lower-risk driver and may qualify for lower premiums.
Understand Your Rights and Options After a Connecticut Accident
Car accidents can have a significant financial impact, including increased car insurance premiums. The increase can vary depending on several factors, including the accident’s severity, your driving record, and your insurance provider.
On average, car insurance premiums increase by about 31% after an accident. However, you can take steps to reduce the impact, such as choosing a higher deductible, shopping around for a new provider, and taking advantage of accident forgiveness programs.
By being proactive, you can minimize the impact of a car accident on your finances and get back on the road with peace of mind. If you or a loved one has been involved in a car accident and are facing insurance issues, don’t hesitate to contact a Connecticut car accident lawyer.
At Jonathan Perkins Injury Lawyers, we have the experience and knowledge to help you navigate the complex world of car insurance and get the compensation you deserve. Contact our office to schedule a free consultation.