Will My Rates Go Up If I Report An Accident?

Customers often tell us they don’t want to file a claim with their insurance company because they fear their rates will go up. The fact is, if the accident was reported to the police, the insurance company will eventually find out from public record. Also, if the other driver involved in the accident decides to file a claim, it will no longer be a secret.

“ Will my rates go up after an accident?” The answer is ‘perhaps’. Your insurance carrier considers many factors before deciding to change your rate, and sometimes it may stay exactly where it was before your accident.

It’s no myth, auto insurance companies DO have a predetermined premium schedule for increases that occur if you cause a wreck. Key phrase: YOU CAUSE.
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 Factors affecting premium increases:

They take multiple factors into consideration when determining if a claim should result in an elevated premium.

  1. Cost of the incident – cost of the claim is often the biggest factor
  2. Driving record – was this your first or second accident? If you haven’t had an accident or ticket in decades, a minor problem will likely leave you unaffected.
  3. Age bracket – young drivers are normally more accident-prone, etc.
  4. Who’s at fault – you shouldn’t have to pay for misfortune. If it’s not your fault, you’re safe.
  5. Your policy’s details – does yours include “accident forgiveness”?

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