Explaining Auto Insurance Rates Following Not-at-Fault Accidents

Accidents are never pleasant experiences. Besides, the potential medical consequences, an auto accident can have a significant impact on insurance and result in dramatically increased premiums. Generally, the cost of auto insurance after an accident depends on who caused it. Continue reading to learn more about how auto accidents may affect your premiums especially when you are not at fault.

Understanding No-Fault Accidents

If an accident is considered to be no-fault, it signifies that you were not the one who caused it.

This is a crucial consideration to make since it allows vehicle insurers to determine which insurance company is responsible for payments. While each insurer might have their own fault assessment guidelines, a lot also depends on the state in which they do business. For instance, in the United States, there are both no-fault and at-fault states. Florida, Massachusetts, New York, New Jersey, Pennsylvania, Kentucky, Kansas, Michigan, Minnesota, North Dakota, Utah, and Hawaii are among the 12 no-fault states that exist at the moment. In these states, regardless of who caused the accident, auto insurance companies pay out claims submitted by their respective policyholders to cover personal injuries.

The Burning Question: Are Premiums Unaffected by a No-Fault Accident?

Most of the time, you won’t have to pay for higher premiums after a no-fault accident. It’s unlikely that your auto insurance rates will rise if the at-fault party is found responsible for the accident and you file a claim against them. In such instances, your medical bills and vehicle repairs will be covered by the insurance company of the at-fault driver. Note that insurers keep track of your driving and accident history, and if you were involved in an accident or filed a claim, your insurance premiums can increase even after a no-fault accident. Nevertheless, this premium hike varies depending on the insurer and state’s legislation.

Determining Fault in an Accident

Insurance companies investigate potential claims by reviewing police reports and comparing the evidence with the relevant state legislation. Depending on the liability, claims investigators in some states determine how much each driver’s insurance will pay.

Lowering Costs on Your Auto Insurance

Here are some ways to lower your auto insurance premiums:

  • Increase your deductible – Your deductible is the sum of money you have to pay out of pocket each time you submit an auto insurance claim. This is especially beneficial if you don’t drive very often and are therefore at a lower risk of accidents or car damage.
  • Bundle Policies – Buying multiple insurance policies from the same provider can make coverage more affordable. This way, you may even qualify for a discount. You may also be eligible for a discount if you have more than one vehicle insured with the same provider.
  • Explore Discounts – Policyholders who have neither been in accidents nor traffic violations are eligible for discounts. Additionally, if your car is equipped with anti-theft systems you may qualify for lower premiums. Talk to your insurer to learn about discounts available on auto insurance

Contact the Experts at Family Financial Insurance Group

Are you looking for affordable auto insurance that does not compromise on coverage? With Family Financial Insurance Group‘s auto insurance services, you can feel secure at all times. Contact us today to get a quote!

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