Will my car insurance go up if I’m not at fault for an accident? Yes, it’s a possibility. How much it will go up depends on many factors, such as the model of your car, the accident that happened, its overall damage cost, etc.
Insurance companies do this to save money and minimize risk. Regardless of fault, what matters to them is how likely you are to end up in another accident. The worse your driving history, the higher the chances of accidents; thus, the price will increase.
Below, we’ll explain the factors that affect insurance prices and how much, on average, the price can go up. We’ll also answer how you can prevent insurance prices from going up. So, let’s get started!
Does Insurance Go Up If It’s Not Your Fault?
Yes, insurance goes up even if it’s not your fault in many cases. It’s a higher possibility, especially in cases where the accident was serious and you also have a bad driving history, such as many other minor accidents, traffic violations, etc.
The scenario mentioned above can label an individual as a “risky” driver who is more likely to cause another accident in the future. The insurer’s increased risk perception often results in higher premiums.
How Much Does Insurance Go Up After An Accident?
How much insurance premiums go up after an accident depends on the accident, the driver’s overall driving history, and the insurance company. Some companies have higher premiums after an at-fault accident than others.
For instance, some insurers may raise premiums by up to 20% or even 40%, depending on their risk analysis. The greater the perceived risk associated with insuring a driver, the more the insurance company will charge.
However, it’s important to remember the insurance premium won’t be high for the rest of your life. If you maintain a claim-free record and avoid traffic violations for a few years following the accident, your insurance premium will return to normal.
5 Factors That Affect The Insurance Premium
Let’s find out how the insurance company does the “risk analysis,” what factors it considers, and how they affect the insurance premium.
1. The Vehicle
Your vehicle’s model number and age are important factors for risk analysis. If you own a luxury vehicle with the latest technology, the insurance company would have to pay more to compensate for damages in case of an accident.
Due to the higher compensation required, insurance companies usually charge more to insure such vehicles. At the same time, a not-so-expensive model car without the latest technology can be insured for a lesser amount.
