Call Us!How Much Does Car Insurance Go Up After an Accident?
A car accident can impact many aspects of your life. You could end up facing hefty medical bills, missing days of work, and dealing with property damage. All of these consequences can affect your finances.
One factor you may not have thought about, however, is your insurance. Do accidents affect insurance rates? Unfortunately, they can in some cases.
If you’ve been in a collision, having dependable legal assistance can prevent you from ending up with serious financial losses. The Colorado car accident lawyers at Bachus & Schanker can guide you through the complex aftermath of your accident, including how it might affect your insurance rates and what you can do about it.
How Much Does Car Insurance Go Up After an Accident?
So, how much will insurance increase after accidents? Depending on the circumstances of the accident, your insurance rates could increase anywhere from 20% to 50%. The average increase is around 42%.
Does Car Insurance Increase After an Accident if You’re at Fault?
Colorado is an at-fault state when it comes to motor vehicle accidents. As such, if you’re found to be responsible for the crash, you could see your insurance rates go up.
The state follows a modified comparative negligence law, so it’s also possible that you could be found partly at fault. Your degree of liability may also impact your insurance rates.
Does Insurance Go Up After an Accident if You Aren’t at Fault?
Under Colorado law, your insurance carrier is prohibited from increasing your rates if you’re found to be completely blameless for a crash. An insurer also can’t cancel your policy or place you in a higher-risk tier. If you contributed to the accident in any way, however, your rates could go up.
Moreover, an insurance company may be able to increase your rates if you’ve filed multiple claims, even if none of the accidents were your fault.
What Factors Determine How Much Your Insurance Rates May Increase?
Fault is just one of the factors insurers look at. They also consider the severity of the accident. Minor accidents, like fender benders, won’t generally cause rates to increase as substantially as accidents that result in property damage or injuries. The more serious the injuries, the higher the rates will climb.
You can expect your insurer to look at the full cost of the damage, as well as whether your vehicle is a total loss. Injuries that require hospitalization or ongoing care will typically result in steeper rate increases as well.
Your previous driving record also plays a role. Your insurer may not raise your premiums as much if you have a clean driving record. You may even be eligible for accident-forgiveness programs that can prevent rate spikes.
On the other hand, if you have a history of collisions or traffic violations, your rates could skyrocket because the company considers you a high-risk driver.
There are also different insurance company policies to be aware of. Some companies may be more forgiving than others when a policyholder is responsible for an accident. You should shop around before deciding on a carrier to find the one that best fits your needs.
How Long Does an Accident Affect Your Insurance Rates?
The good news is that the hike in your insurance rates isn’t permanent. If you were at fault for the crash, the new rates might remain in place for three to five years. Certain companies may also lower your surcharge with each year that passes.
Can You Prevent Your Insurance From Increasing After an Accident?
It may be possible to prevent your insurance rates from increasing in some instances. If there’s only minor damage to your vehicle, for example, you could choose to pay out of pocket to avoid a claim. Accident-forgiveness programs might also be an option if you have a clean driving record.
Some insurers offer discounted rates to policyholders who voluntarily take a defensive driving course. And, as mentioned, you should take the time to compare multiple insurers. Not all insurance companies operate the same way, and many calculate risks differently.
What Should You Do if Your Insurance Company Raises Your Rates After an Accident?
The first thing to do is to verify that your insurer has assessed the accident correctly. If you weren’t at fault, but your insurance has gone up, there may have been a mistake.
Under Colorado law, you have the right to file a complaint if an insurer wrongfully increases your rates. They must notify you of the steps you can take to dispute the rate change. This most often involves requesting a hearing before the Colorado Insurance Commissioner.
When Should You Contact a Car Accident Lawyer After a Crash?
It’s always a good idea to contact a lawyer after a car crash. Even if you assume the accident is straightforward and won’t lead to disputes, you could benefit from legal assistance.
Since Colorado is an at-fault state, the other party may try to pin the blame on you. If they have legal counsel, you could end up being assigned a percentage of liability, which could cause your rates to increase. Your attorney will assert your rights and prevent you from being unfairly blamed for the collision.
Even if you choose not to hire an attorney when first filing a claim, you should do so as soon as you notice that your insurance rates have increased. Filing a complaint with the Insurance Commissioner is a complex process that requires knowledge of state laws. Without trustworthy legal aid, your complaint could be disregarded.
How Can Bachus & Schanker Help After a Car Accident?
Being involved in a car accident can leave you dealing with ongoing pain, economic losses, and stress. The last thing you need to worry about is seeing your insurance rates go up if you weren’t responsible for the crash.
At Bachus & Schanker, our attorneys know how difficult the aftermath of an accident can be. We provide compassionate assistance that you can count on, no matter how complex your case may be. We’re here to help you get a positive outcome.
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Kyle Bachus & Darin Schanker
Top-rated Colorado-based personal injury lawyers and co-founders of Bachus & Schanker, Kyle Bachus and Darin Schanker, have represented car accident victims and families across Colorado for more than 30 years, earning a reputation as some of the best car accident attorneys for serious injury cases. The firm is structured to handle car accident cases of all types and severities, with a team organized to provide focused support and guidance throughout the process. Kyle and Darin guide victims through the legal process with the support of a dedicated team of car accident specialists and Victim Advocates, ensuring care and advocacy from start to finish so clients can stay focused on healing.
Both Kyle and Darin are nationally recognized for their trial skills and leadership in the legal community. They are members of the Million Dollar Advocates Forum, an exclusive group of attorneys who have achieved million and multi-million-dollar verdicts and settlements, a distinction earned by fewer than 1% of U.S. lawyers. In addition, they have been named Colorado Super Lawyers every year for nearly two decades, included in the Lawdragon 500 Leading Plaintiff Lawyers in America, named Top One Percent by the National Association of Distinguished Counsel, Top 10 Personal Injury Attorneys in Colorado by America’s Best Advocates, and recognized as top civil plaintiff attorneys by The National Trial Lawyers. Beyond the courtroom, they support the Colorado community through the Bachus & Schanker Cares Foundation, which sponsors local nonprofits and initiatives. See Kyle Bachus and Darin Schanker on Super Lawyers.
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