Do Insurance Rates Rise After an Accident?
#1 How Severe Was It?
Insurance companies not only look at who was at fault for an accident before deciding to raise insurance rates, but they also consider the severity of the wreck. A major-fault collision will be assessed differently than having a windshield replaced after a tree branch falls on your vehicle. Most experts agree that how much it costs to fix the damage (aka the severity) is the number one factor that goes into an insurer’s decision to raise rates. Still, many people try to avoid filing claims at all and make DIY fixes for minor issues like dents and bumper problems. This is a common but costly mistake since quick fixes often lead to more damage and a higher tab when you eventually have to take your vehicle in for auto body repairs.
#2 Who Was At Fault?
You’re driving down the road, and as you pass through a green light intersection, another car blows through and T-bones your vehicle. Thankfully, no one was hurt, but you are worried about the possibility of an increase in your insurance rates. If you live in the state of Arizona, this shouldn’t be a concern. According to Zachar Law Blog, insurance companies cannot raise your rates just because you were involved in an accident that wasn’t your fault. The Arizona law states that specifically that insurers cannot increase insurances costs for a driver that did not “cause or significantly contribute to the accident,” so be sure to be on the lookout for any illegal hikes following a collision that wasn’t your fault.
If you do find yourself in the unfortunate position of having been involved in an accident of any kind, allow Orlando Auto Body to make the repair and insurance claim process easier by calling us at 480-418-4737.