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How Not-at-Fault Accidents Impact Auto Insurance Rates

Mar 23, 2023

Auto

How Not-at-Fault Accidents Impact Auto Insurance Rates

As a driver, you are likely aware of how at-fault accidents impact your auto insurance rates. However, you may be surprised to learn that even being involved in an accident where you weren't at fault could harm your auto insurance rate. Here's a closer look at how not-at-fault accidents could impact your auto insurance rate.

Determining Who's at Fault

Once an accident occurs, most insurance companies research police reports and evidence to help determine who caused the accident. Insurers will also rely on state insurance laws. According to the investigators, some states calculate auto insurance rates based on the percentage of fault they have for the accident.

How Not-at-Fault Accidents Impact Auto Insurance Rates

It's basic knowledge that causing an auto accident will damage your auto insurance rates. However, a not-at-fault accident could raise your premiums. This is based on variables such as the damage your vehicle sustained and the location of the accident. Your auto insurance rate may increase because the at-fault driver does not have auto insurance. Consider purchasing uninsured motorist coverage to protect you in this situation. Adding forgiveness coverage is another variable to consider. Accident forgiveness coverage helps stabilize your premiums even if an accident occurs. You may qualify for accident forgiveness coverage if you have an established track record of safe driving. It's also recommended that you research the state's auto insurance laws. In some states, auto insurance companies are illegal to raise premiums if the driver was involved in a not-at-fault accident.

What About No-Fault Insurance?

Many states require drivers to purchase no-fault insurance. No-fault insurance covers your medical treatment if you sustain any injuries in an auto accident. The policy also covers your passengers if they sustain an injury as well. No-fault insurance is an asset because it covers your injuries even if you caused the accident.

Finding Coverage

It's recommended that you shop around while searching for an auto insurance rate that fits your budget well. It's the easiest way to find an affordable rate. You may need to switch carriers to find the coverage you're looking for at an appropriate rate.

Things to Consider

Your policy deductible is another factor that influences your auto insurance rate. Increasing your policy deductible lowers your premiums. However, that also increases your financial burden. You'll be expected to cover more repair costs even if you're involved in a not-at-fault collision. Assess your financial situation carefully before making this decision. Bundling your auto insurance with your home and renter's home insurance can also help you save money on your auto insurance rate through a discount. Practicing safe driving habits can also help you qualify for a discount.

Consult with Fuller Insurance Agency

Being involved in an accident is a frustrating situation. If you need help with how to proceed, contact the team here at Fuller Insurance so we can help you explore your coverage options.

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