When you’ve been in an accident, you may wonder if your car insurance rates will spike—and by how much. In Louisiana, auto insurance companies often increase rates after an accident, especially if you’re at fault. But even if you’re not, it’s possible that your premiums could still go up. Understanding what factors affect these changes can help you be better prepared.
Understanding the Impact of an Accident on Car Insurance
After an at-fault accident, car insurance typically increase. How much they go up depends on several factors, including your insurance provider, driving record, claims history, and even your location.
Having a comprehensive car insurance policy with features like accident forgiveness can help mitigate potential rate hikes.
Young drivers, for example, may see the biggest increases in car insurance because they are statistically at a higher risk, according to many insurance companies. In some cases, your premiums could rise even if you were not at fault—especially if your insurance company had to pay out for your claim.
The average rate increase for full coverage after an at-fault accident is about $840 annually, though this amount can vary widely depending on your circumstances.
Factors That Influence Rate Increases
Several factors can influence how much your car insurance rates will increase after an accident. Understanding these can help you anticipate changes and possibly mitigate them.
How Much Do Insurance Rates Go Up After Accident?
Understanding how much car insurance costs can rise after an accident can help you prepare for potential financial impacts.
At-Fault Accidents and Rate Increases
In general, if you’re found in an at-fault accident, your car insurance premium is likely to increase. Insurance companies see you as a higher risk to insure, which leads to increased premiums. Exactly how much your rates rise depends on factors like:
Driving Record:Â A history of accidents or traffic violations can lead to higher increases.
Claims History:Â Multiple claims in the past could mean a larger premium hike.
Geographic Location: Louisiana’s high accident rates and insurance costs can contribute to premium increases.
In Louisiana, your best bet is to talk with your insurance representative to get a clear idea of how your rates might change. Each company has its policies and methods of calculating post-accident rate increases.
No-Fault Accidents and Rate Increases
Generally, if you’re involved in a no-fault accident, your insurance premium shouldn’t go up significantly. Since the at-fault driver’s insurance typically covers the damages, your provider may not need to pay. However, some companies do increase rates slightly, even if you’re not at fault—especially if you have a history of filing multiple claims. If you’ve been in several accidents, it could make you appear to be a higher-risk driver, leading to a small increase.
How Long Does an Accident Stay on Your Record?
In Louisiana, a car accident usually stays on your insurance record for around three to five years. During this period, insurance companies may apply a surcharge to your rates due to the accident. Understanding how insurance after an accident is affected can help you manage your rates more effectively. It’s wise to keep a clean driving record and avoid any new traffic violations, as additional incidents could make your rates rise even further.
If you do receive a traffic ticket during this time, consulting a traffic attorney may help.
Working with a firm like Burnham Law Firm, to make sure your ticket is reduced to a non-moving violation. A non-moving violation is a penalty for something that happens when a vehicle is not moving (e.g., no brake tag, no seatbelt) that would not cause your insurance rates to increase.
Reducing the ticket to a non-moving violation, such as a seatbelt infraction, might prevent your insurance rates from increasing. Non-moving violations are generally less likely to impact insurance premiums, as they don’t reflect risky driving behavior.
Can I Prevent My Car Insurance Rates from Going Up After an Accident?
Full coverage car insurance rates can significantly increase after an at-fault accident, so it's important to explore options like accident forgiveness.
Strategies to Mitigate Rate Increases
Some insurance companies offer accident forgiveness programs, which can protect you from a rate increase after your first at-fault accident. With accident forgiveness, your insurer agrees to waive the surcharge for a single accident if you’ve maintained a good driving record. Some companies even provide this benefit for free after you’ve been a customer for a certain number of years.
Accident forgiveness is a policy feature that allows you to avoid an increase in your premium for your first at-fault accident. This option can be helpful, especially if you’ve had an otherwise good driving record.
How to Lower Your Car Insurance Rates After an Accident
If your car insurance premium does go up, there are several ways to manage the cost:
Shop Around:Â Getting quotes from different insurers can help you find more affordable rates.
Raise Your Deductible: Increasing your deductible can lower your monthly premium, though you’ll need to be prepared to pay more out-of-pocket if an accident happens.
Add Discounts:Â Many insurers offer discounts for things like safe driving, bundling multiple policies, or even having good credit.
Work with an Insurance Agent: A trusted insurance agent can help you shop for the best rates. Feel free to reach out to us if you’d like a recommendation for a knowledgeable agent in Louisiana.
Alternative Car Insurance Options
If you’re considered a high-risk driver due to multiple accidents or traffic violations, finding affordable car insurance can be challenging. However, there are alternative options available that might suit your needs.
Why Did My Car Insurance Rates Go Up Even if I Wasn't at Fault?
It’s frustrating, but sometimes car insurance companies may raise your insurance premium even when you’re not at fault. Here’s why:
Coverage Gaps Exposed: For instance, if a teenager involved in an accident wasn’t listed on the policy as a regular driver, the insurer may increase rates.
Location Changes: If the vehicle’s primary location has changed, such as from one state to another, it could lead to higher rates.
If an accident reveals any additional risk factors for the insurer, they might decide to adjust your premium accordingly.
Will My Car Insurance Rates Go Up If I Make an Uninsured Motorist (UM) Claim Against My Insurance Company After an Accident?
When you’re hit by an uninsured driver, you may need to file an uninsured motorist (UM) claim with your own insurer. Under Louisiana law, insurance companies are not allowed to raise your rates simply for making a non-fault UM claim. Specifically:
La. Stat. tit. 22 §1284. Motor vehicle insurance; consideration of nonfault incidents prohibited
A. No insurer shall increase the rate, increase or add a surcharge, cancel, or fail to renew any policy of motor vehicle insurance when such action is based on consideration of one or more nonfault incidents.
B. In this Section, "nonfault incident" means an accident, collision, or other incident involving a vehicle covered by a policy issued by the insurer in which the driver of the insured vehicle was not at fault, regardless of whether the incident was reported to any law enforcement agency.
This law means that Louisiana drivers should feel secure filing UM claims without worrying about a premium hike if they weren’t at fault. UM claims can help cover expenses like medical bills and vehicle repairs, providing valuable financial protection.
Accident Forgiveness and Car Insurance Rates
Accident forgiveness is a valuable feature offered by some insurance companies that can prevent your rates from increasing after an accident. This feature is typically available for an additional fee and can be a lifesaver if you have a clean driving record.
Choosing the Right Insurance Company
Selecting the right insurance company is crucial, especially after an accident. Here are some factors to consider to ensure you make the best choice.
What to Expect from Your Car Insurance Company
Each insurance company has its own approach to setting rates after an accident. Here are some general factors they consider:
Claim Amount:Â Higher claim amounts are more likely to trigger a rate increase.
State Regulations:Â In Louisiana, there are limits on what insurers can do, but they are still able to increase rates for at-fault claims.
Company Profit Goals:Â Insurance companies balance risk and profit, which is why shopping around after an accident is wise. Rates can vary widely between insurers, so finding the right coverage at the right price may require comparing options.
Your car insurance doesn’t have to stay a mystery—let Burnham Law Firm help you take control after an accident.
After an accident, it’s normal to feel uncertain about what comes next. Unfortunately, one likely outcome is an increase in your car insurance. The good news? You have options to help manage or even avoid a rate hike.
Some insurance companies offer accident forgiveness, a feature that can shield you from premium increases after your first accident. Getting familiar with how insurance rates are calculated and what factors impact them can make a big difference in the choices you make about your coverage.
Since car insurance rates vary widely, even among top providers, consulting with an insurance agent can help you find the best rates for your needs. And remember, your driving history is just one part of the picture—every insurer has its own way of weighing factors like claims history, location, and more.
If you’ve been in an accident, working with a personal injury attorney can give you peace of mind and ensure your rights are protected. Burnham Law Firm is here to help. For guidance after an accident, reach out to us today—fill out our contact form or call us directly.
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