You’ve been in a car accident. It wasn’t your fault, but you reported it to your auto insurance provider, as required by the terms of your policy. Now you may be wondering: will your premiums go up, even though someone else is to blame for what happened?
Can Your Insurance Go Up Even If the Accident Wasn’t Your Fault?
In an ideal world, you would not have to pay the price of a car accident that wasn’t your fault. However, some insurance companies do increase drivers’ premiums whenever they have an accident or file a claim. The likelihood of an increase in your insurance premium after a no-fault accident will depend on various factors, such as whether you’ve filed a claim against your policy or whether you have an accident forgiveness provision.
Why Is Car Insurance Going Up After a Not-At-Fault Accident?
Car insurance companies make their money by collecting more in premiums than they pay out in claims. One way they do this is by carefully assessing each policyholder’s likelihood of costing them money. As such, a driver’s car insurance premium depends in part on the insurance company’s assessment of their likelihood of filing a claim or incurring liability after a car accident. So, some insurers choose to increase drivers’ premiums after a car accident, even if the driver didn’t cause the crash.
Average Insurance Increases After an Accident in Houston
How much does insurance go up after an accident?
The amount a policyholder’s premiums increase after an accident in Houston depends on several factors, including:
- Whether the driver is found to be at fault for the crash
- The severity of the accident and the resulting insurance claims
- Whether the driver has accident forgiveness
An insurer might not increase a policyholder’s premiums at all in the event of a fender-bender that wasn’t the policyholder’s fault. On the other hand, a driver who causes a severe collision may see their premiums increase by as much as 50 percent.
Tips to Avoid Higher Insurance Premiums After a Not-Your-Fault Accident
Here are some best practices for avoiding higher insurance premiums after a not-at-fault accident:
- Purchase accident forgiveness – Many insurers allow drivers to purchase or earn accident forgiveness coverage, under which the insurer agrees not to increase the driver’s premium after an accident.
- Request copies of the police report – You might convince your insurer to forego a rate increase with evidence of the other party’s fault, such as a police accident report, showing that you did nothing wrong.
- Seek legal counsel – An experienced attorney can deal with the insurance company on your behalf and advocate for you if your insurer increases your premiums.
What Texas Law Says About Fault and Insurance Rates
Texas follows a modified comparative fault system for car accidents, which recognizes that multiple drivers may share fault for a crash. A driver who suffers injuries or property damage in an accident can still recover compensation so long as they bear less than 51 percent of the fault for causing the crash.
A driver found to bear the majority of responsibility for a car accident will likely see significant increases in their insurance rates. However, a driver who bears some portion of the fault may also see their rates increase. Insurance rates can stay high for as long as three years after an accident.
Steps You Can Take If Your Insurance Premium Increases After a Not-At-Fault Accident
Here are some important steps you can take to mitigate the effects of an insurance premium increase after a car accident you didn’t cause:
- Explore rate reduction programs – Some insurance companies offer rate reductions to drivers who participate in various programs, such as completing a safe driving course or installing a device on their car’s computer that monitors their driving behaviors. Many insurers offer discounts if you bundle your auto policy with a homeowner’s or renter’s insurance policy.
- Request an explanation from your insurance company – You can contact your insurance provider after your rate increases following a not-at-fault accident to ask the company to explain the reason(s) for the rate hike. You might negotiate a reduction in your insurance premium if you explain to your insurer that you did not cause the accident.
- Adjust your coverage – You can also reduce your insurance premiums by increasing your deductibles or reducing the policy limits on your coverages.
- Shop around – You can request quotes from other insurance companies to see what premiums they charge for the coverage you have.
FAQs About Car Insurance After a Not-At-Fault Accident in Houston
Below are the answers to some common questions that people have after getting into car accidents through no fault of their own:
Can my car insurance go up if I didn’t cause the accident?
Unfortunately, your car insurance rates can increase after a car accident, even if another driver is found to be at fault. Some insurance companies increase drivers’ rates after an accident, no matter who caused it. Other companies only increase a driver’s rate if they bear a majority of the fault for an accident.
Why did my insurance rate increase even though I wasn’t at fault?
Insurers factor not-at-fault accidents and claims against coverages like uninsured/underinsured or collision/comprehensive into a driver’s risk profile. They do so because having an accident or filing a claim can indicate a greater likelihood of a future accident or claim, even if you didn’t cause the accident or claim.
Is Texas an at-fault or no-fault state?
Texas operates under an at-fault system for car accidents, entitling accident victims to pursue legal action against the driver(s) or parties at fault for causing the accident.
How can I lower my insurance rate after a not-at-fault accident?
You may have several options for lowering your insurance rate after a not-at-fault accident. For example, if you have an accident forgiveness clause in your car insurance policy, the insurance company won’t increase your rates after a qualifying accident. Most insurers allow drivers to purchase accident forgiveness or offer it as a complimentary benefit after several years of accident-free driving and continued customer status with the insurance company.
Contact Our Houston Car Accident Attorneys to Learn More
Have you been hurt in a car accident in Houston? Contact the experienced team with Fibich, Leebron, Copeland & Briggs for help protecting your rights and seeking fair compensation. We can explain your rights and options during a free consultation.
