Car Insurance Go Up After an Accident

How Much Does Car Insurance Go Up After an Accident?

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Were you involved in a car crash in Magna, Utah? Injuries and vehicle damage are your primary concerns – and if you did not cause the collision, the expenses should not be yours to bear. A car accident lawyer can provide you with much-needed guidance, protecting your rights and your financial future.

That said, collisions can result in other ramifications, like seeing your insurance rates rise. So, how much of an increase can you expect?

The amount depends on several factors, including your driving record, the severity of the crash and whether you were at fault. Here, an experienced Magna car accident lawyer explains the impact a collision can have on what you pay for coverage.

Average Insurance Rate Increase After a Car Accident

According to MarketWatch.com, for a driver with a clean driving record, a single collision results in an average rate hike of 45 percent. Some insurance providers are more affordable, raising rates by less than 30 percent, but others opt for increases as great as 69 percent.

Drivers in every state pay more for car insurance after an at-fault accident, and indeed Utah is not at the top of the scale. Residents of Utah are hit with an average 48 percent increase, which is much less than what drivers in California, Massachusetts, Maryland, New Jersey, North Carolina and many other states pay. However, drivers in the states that neighbor Utah – Arizona, Colorado, Idaho, Nevada and Wyoming – all receive lower rate hikes than drivers here.

In any case, the average 48 percent rise in car insurance we see in Utah adds up to a significant amount of cash. With a clean driving record, the average cost for coverage is $1,928, or $161 per month. After an accident, Utah drivers could pay as much as $2,855 annually, or $238 per month.

Why Insurance Rates May Rise After a Car Accident

Any car crash – even one you did not cause – represents a heightened risk for your insurance provider. You might live or drive in a geographic area where a higher number of collisions occur. Or, perhaps you have high-risk driving habits or other factors that make car accidents more likely.

Insurance companies look at risk profiles when calculating rates, and if a driver is seen to be more at risk of requiring an insurance payout, their rate will rise. Car accident lawyers say that this is the probable outcome with the following:

  • An at-fault accident, as insurance providers see drivers who are to blame for car crashes as high risks for future claims
  • An accident with serious injuries, as higher insurance premiums are intended to reflect the high costs of pursuing compensation
  • An accident involving a violation of traffic laws, like speeding or driving under the influence (DUI), as these can result in higher claims costs
  • A history of filing multiple claims, as several claims within a brief period indicate a pattern of risk to insurers

Do Insurers Raise Rates When a Driver is Not at Fault?

Experienced car accident lawyers know that Utah law prohibits insurance companies from increasing rates after a not-at-fault collision. Despite this, insurers sometimes find ways to raise rates. The reasons they get away with this are many:

  • Insurance companies use obscure, complex formulas to calculate rates.
  • Insurers define fault for a car crash differently than the state of Utah.
  • In cases where fault is unclear, insurance providers blame their customers.
  • Increasing premiums at the end of a policy period is not against the law.

So, you might see your rates rise, even though you were not to blame for your collision. However, your insurance company might still have to pay for your initial damages through your PIP coverage, no matter who was at fault. Or, if you were hit by an uninsured driver, your insurer may have to cover the costs. As such, the increase is understandable.

Does Hiring a Car Accident Lawyer Cause Rates to Rise?

While many people in Magna, Utah, think that hiring a car accident lawyer automatically results in an insurance rate hike, this is not the case. The misconception likely stems from concerns about the potential for litigation and how that is seen as a risk factor by insurance providers.

In reality, your decision to have an experienced car accident lawyer manage your case will not be reported to insurers, nor does having legal representation factor into the formulas they use to calculate rates.

Having a qualified car accident lawyer on your side ensures you receive fair treatment throughout the claims process. However, the outcome could indirectly affect your future insurance premiums. For instance, if your attorney’s efforts help to establish that you were less at fault for a car crash, that would reflect positively on your risk profile. If the opposite happens, of course, that could have a negative impact on your insurance rates.

When to Contact a Lawyer About a Car Accident

If you were recently injured by another driver in Magna, Utah, you could benefit from the assistance of a skilled car accident lawyer – like Chris Cockayne at Cockayne Law.

Contacting an attorney early on helps ensure you get the maximum compensation for your injuries and losses, and with legal experts taking charge of your case, you can focus on healing. At Cockayne Law, we offer free, no-obligation consultations, so there is no need to wait to get the assistance you need. To explore your options after a Magna collision, contact our office and speak with an experienced car accident lawyer today.