Examples of Accidents That Impact Car Insurance Premiums

August 19, 2023 by in Uncategorized

 Insurance companies have specific criteria for determining what qualifies as an accident and assessing fault. Car insurance rates are calculated based on the potential costs of covering injuries and damages resulting from accidents involving you, your vehicle, and others. While insurance companies aim to provide coverage and make a profit, they also consider your driving record to gauge the likelihood of future accidents and adjust your premiums accordingly.

Fortunately, insurance companies recognize that not all accidents are avoidable and that fault cannot always be attributed to the policyholder. Although each insurance company has its own methodology for rate adjustments, accidents are generally treated similarly across the industry, with prices being adjusted based on the type of accident. Here are several common examples of accidents that may increase your car insurance rates.

  1. Single car accident: This refers to an accident involving only one vehicle, such as crashing into a tree or driving off the road. While single car accidents may not significantly impact your rates due to the absence of damage to another vehicle, your provider may view them as a sign of irresponsible driving, potentially resulting in increased premiums, particularly if injuries were sustained.
  2. Minor multiple car accident: If you were at fault in a minor car accident, such as a parking lot collision or fender bender, it may be challenging to avoid an increase in your car insurance rates. While minor accidents may not lead to significant rate hikes as long as the damage to the other vehicle is minimal, involvement in multiple minor accidents can result in higher premiums.
  3. Major multiple car accident: Being at fault in an accident that causes major injuries will significantly increase your car insurance premium. Insurance companies bear substantial costs when such accidents occur, and your driving history will be negatively impacted for several years. However, if you maintain a clean record for three to five years following a major accident, your rates may return to normal.
  4. Accidents caused by a DUI: Accidents involving driving under the influence (DUI) have the most substantial impact on insurance premiums. Even if there was no accident involved, receiving a DUI can result in increased rates. If you are involved in a car crash while under the influence, your car insurance rates will skyrocket, and it may become difficult to find coverage with multiple DUI-related accidents on your record.
  5. No-fault accident: A no-fault accident occurs when you are involved in an accident that you did not cause. While insurance companies acknowledge that such accidents can happen even if you are a responsible driver, some states with no-fault car insurance still increase rates regardless of fault. If you reside in one of these states, your rates may rise even if you were not responsible for the accident.
  6. Hit-and-run accident: A hit-and-run accident occurs when another party involved in the accident flees the scene. In most cases, you will not be held responsible for the accident, and your rates will not increase. However, you will need to provide evidence that another vehicle was involved and left the scene.

Car Insurance Prices By State Following An Accident

The following lists the potential increases in vehicle insurance rates in each state following an accident. 

Keep in mind that these rates can change depending on the year and other elements. 

Always get specific pricing and information from your auto insurance provider.

StateYearly Insurance RatePost-Accident Rate% Difference
Michigan$6,882$14,131105
New Jersey$2,387$4,53990
California$1,932$3,55084
Louisiana$3,082$5,22670
Texas$2,497$4,19468
North Carolina$1,379$2,30967
Florida$2,751$4,54965
Illinois$2,049$3,34063
Indiana$1,441$2,33962
Georgia$2,204$3,52860
Arizona$2,753$4,40160
Nevada$2,986$4,74459
Oregon$2,304$3,65959
Maryland$2,303$3,63158
Maine$1,286$2,01156
New Hampshire$1,955$3,03855
Wyoming$1,776$2,75555
Minnesota$2,099$3,24855
Kentucky$2,831$4,29552
South Carolina$1,996$3,02351
Utah$2,423$3,62249
Massachusetts$2,234$3,30448
Vermont$1,668$2,44046
Missouri$2,458$3,59246
Virginia$1,613$2,34545
Wisconsin$1,568$2,27245
Mississippi$2,215$3,19844
Alabama$2,087$2,98443
Colorado$3,255$4,65043
Connecticut$2,852$4,06242
Delaware$2,915$4,13242
New York$2,565$3,62741
West Virginia$2,108$2,96741
Arkansas$2,200$3,09441
Hawaii$1,680$2,35840
Ohio$1,576$2,20340
Alaska$1,526$2,13240
Washington$1,814$2,53040
Oklahoma$2,551$3,55039
Montana$2,370$3,19435
Iowa$1,748$2,33734
North Dakota$2,315$3,07733
Rhode Island$3,300$4,24929
Tennessee$2,045$2,60127
Pennsylvania$2,095$2,64826
South Dakota$2,561$3,20125
New Mexico$2,338$2,90424
Idaho$1,886$2,29222
Nebraska$2,674$3,10416
Kansas$2,571$2,7678

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