How Much Does Car Insurance Go Up After an Accident?

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 attorney SLC 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 car insurance rates rise, even when seeking insurance for minor accidents. So, how much of an increase can you expect in your car insurance after an accident?

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.

Does Insurance Always Go Up After An Accident?  

No, insurance doesn’t automatically increase after every accident. Whether your premium rises depends on a lot of factors, including the size of the claim, who caused the crash, your insurer’s rating system, and your driving history. 

Some drivers qualify for accident forgiveness programs that prevent a first accident from affecting rates. Others might avoid a surcharge if the claim amount is small or if they have maintained a clean driving record for several years. 

What’s more, insurance companies evaluate each claim in a different way. While at-fault accidents are more likely to trigger a premium case, many drivers are surprised to learn that some accidents have little or even no impact on renewal rates.

Here are some common factors insurers typically review:

• Injury claims
• Fault determination
• Prior accidents
• Repair costs
• Traffic violations
• Claim severity
• Accident forgiveness eligibility
• Traffic violations 

The only way to know for sure how an accident affects your premium is to review your renewal notice or directly speak with your insurance provider. 

Average Car Insurance Rate Increase After a Car Accident

According to BankRate, drivers with a single at-fault accident pay around 43% more, on average, for complete coverage compared to drivers with clean records. 

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.

How Much Do Major Insurance Companies Raise Rates After An Accident?  

Well, there’s no specific rate increase after an accident, as every insurance company uses its own risk assessment model and underwriting. 

Companies like State Farm, Farmers, Allstate, Progressive, and GEICO evaluate accident claims differently when calculating future premiums. 

In Utah, a single at-fault accident raises your car insurance premium by 20% or 50% on average, depending on your provider. For the average Utah driver, that means an annual increase from roughly $2,294 to over $2,850.

Here’s how major factors affect your rates:

• At-Fault Accidents → Rates jump by about 40% on average, as per claim severity.
• Not-At-Fault Accidents → Under Utah Code §31A-19a-212, insurers can’t raise your rates in case you’re 0% at fault.
• Comparative Fault → If you’re found even partially at fault (i.e., 20%-30%), your rates can still rise, and your payout will be reduced. 
• Duration → These surcharges usually remain on your record for 3-5 years, after which your rates should return to normal.
• Accident Forgiveness → Many major companies waive rate hikes for the very first minor at-fault crash if you purchased this particular coverage beforehand.

How Much Does Insurance Go Up After A Minor Accident?  

There’s no fixed percentage increase after the minor accident, as every insurance company evaluates a claim in a different way. 

Generally, accidents involving only minor vehicle damage tend to have less impact on insurance premiums compared to collisions with extensive repairs, bodily injuries, or multiple vehicles.

For most drivers, a first minor at-fault accident may result in only a modest increase at renewal. 

Anyhow, drivers with speeding tickets, previous claims, or a history of traffic violations often see larger increases because insurers view repeated incidents as indicators of future risk.

Remember:

• Insurance companies also look beyond the visible damage to a vehicle. 
• Even a relatively small collision can become costly if rental car expenses, medical treatment, or supplemental claims are involved.

Consequently, two accidents that appear similar on the surface might affect premiums differently. Factors like property damage vs. injury claims, total claim costs, and violations also influence rate increases to some extent. 

Some insurers offer accident forgiveness programs that prevent a driver’s first qualifying accident from triggering a surcharge. Because underwriting rules differ substantially between carriers, comparing quotes can sometimes help drivers find lower rates. 

Why Does Car Insurance Go Up After an Accident?  

Insurance companies calculate their premiums based on risk, and there’s no second opinion on that.

When the accident occurs, especially an at-fault crash, insurers may view the driver as more likely to file future claims. 

Car 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.

Personal injury lawyer Rose Park believes that this is the possible outcome with:

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

Does Insurance Go Up After a Not-At-Fault Accident?  

In many cases, a not-at-fault accident has little or no impact on insurance premiums. But the answer depends on your insurance company, state, and claim cost. 

Some insurers primarily focus on at-fault accidents when calculating future premiums. Others might still consider a not-at-fault claim as part of your whole insurance history, particularly if many claims occur within a short period.

Also, what drivers most likely assume is that being innocent guarantees their rates will remain unchanged. But that’s not always true.

While that is mostly the case, it’s not guaranteed, which is why reviewing your renewal documents carefully after the claim is super crucial. 

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

Experienced car accident lawyers know that Utah car accident laws prohibit car 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 during insurance company investigations and premium reviews.
• Insurers define fault for a car crash differently than the state of Utah.
• In cases where fault is unclear, car 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, depending on how car insurance pays for medical bills after an accident, no matter who was at fault.

Or, if you were hit by an uninsured driver, your insurer may have to cover the costs through uninsured and underinsured motorist coverage.

Does A Hit-And-Run Affect Insurance Rates?  

A hit-and-run accident can affect insurance premiums, although the outcome depends heavily on the circumstances of the crash.

If another driver strikes your vehicle and leaves the scene, your insurer may cover damages through collision coverage or uninsured motorist property damage coverage. While you may not be found at fault, the claim itself can still become part of your insurance history.

Several factors influence whether rates increase after a hit-and-run:

• Whether the responsible driver is identified
• The amount paid by the insurer
• State insurance regulations
• Previous claims history
• Available accident forgiveness benefits

Some drivers see little change after a hit-and-run claim, while others experience premium adjustments at renewal. Reviewing your policy and speaking with your insurer can help clarify how a specific claim may affect future rates.

What Happens If You Have Multiple Accidents?  

Multiple accidents can drastically increase insurance premiums because insurers view repeated claims as evidence of higher future risk. Each additional accident becomes part of your claims history.

That said, it may impact underwriting decisions during policy renewals. Hence, drivers with multiple accidents may face reduced discount eligibility, huge premium increases, higher deductibles, and sometimes, non-renewal of coverage.

Apart from this, insurance companies place considerable weight on claims frequency. Even if individual accidents are comparatively minor, multiple claims within a short period can lead to higher insurance costs.

Maintaining a claim-free driving record after the accident is the best way you can rebuild a favorable risk profile and prevent rate increases in the future. 

When Does Car Insurance Go Back Down After An Accident? 

For many drivers, the impact of a car accident decreases with time, as it is expected. Most insurance companies consider at-fault accidents while calculating premiums for about 3-5 years, although exact timelines differ by state and insurer.

As the accident becomes older, insurers place less weight on it during risk evaluations. Drivers who maintain a clean record after the course see their premiums improve at renewals most of the time.

Other factors that influence the timelines include driving violations, the number of claims filed, insurance company guidelines, and, not to mention, the accident severity.

So, make sure you maintain safe driving habits during this time to stay safe and reduce insurance costs.

Can You Lower Insurance Rates After An Accident?  

Yes, you can.

Although it’s not possible to erase the accident completely from your insurance history instantly, there are many ways to reduce your future premium increases.

Here’s what you should do:

• Compare insurance quotes regularly
• Maintain a nice driving record
• Avoid any additional claims 
• Bundle insurance policies
• Try increasing deductibles
• Finish defensive driving courses when available

Some insurers also offer discounts for telematics programs, safe driving habits, long-term customer loyalty, and low annual mileage.

Note:- If your rates significantly increase after the accident, shopping around can usually produce substantial savings, as insurers evaluate accident history differently. 

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 car insurance providers view it as a risk factor.

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, especially when dealing with insurance adjusters. However, the outcome could indirectly affect your future car 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 car insurance claim timelines and 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 determine whether filing a personal injury lawsuit is necessary. 

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.