How Much Does Car Insurance Go Up After an Accident?

After an accident, car insurance can go up by anywhere from 20% to 50%. However, the exact amount by which your car insurance premium goes up will depend on the severity of the crash and the circumstances surrounding the collision.

If you were involved in a collision and you’re wondering, “How much does car insurance go up after an accident?” contact a Raleigh car accident lawyer as soon as possible. Your attorney can look at the details of your situation and help you understand what to expect moving forward. 

The Basics of Car Insurance in North Carolina

In North Carolina, drivers are required to carry a minimum amount of car insurance coverage. More specifically, the state mandates that all drivers have liability insurance, which includes:

• Bodily injury liability: This covers the cost of injuries caused to others in a collision where you are at fault.
• Property damage liability: This compensates others for the damage that is caused to their property in a crash where you are at fault. 
• Uninsured/underinsured motorist coverage: This will protect you if the other driver is either uninsured or does not have enough coverage to pay for the extent of your damages.

While these are the minimum requirements, many drivers opt for higher coverage—including comprehensive and collision insurance—to protect themselves even better in the event of a collision. 

After getting into an accident, your insurance premiums may increase—especially if you file a claim and regardless of who’s at fault for the crash. However, the amount of money by which your insurance will increase depends on several factors. 

How Much Will My Car Insurance Go Up After an Accident?

There is no fixed or universal percentage increase that insurance premiums abide by after an accident. Insurance companies assess each case individually before increasing how much the insured parties have to pay. 

However, many factors can influence how much your rates will rise. These include the severity of the accident, your fault in the crash, your driving history, and your insurance company’s policies.

Severity of the Accident

The more severe the accident, the higher the potential increase in your car insurance rates. Insurance companies evaluate the total cost of the accident when determining the premium increase. This includes the amount paid for vehicle repairs, medical bills, and any legal costs. 

In cases where the accident involves major property damage or serious bodily injury, insurance companies are more likely to raise your premiums substantially. High-cost accidents pose a greater financial risk to the insurer. 

This often prompts insurance providers to adjust your rates in a way that reflects the increased likelihood of having to pay out additional claims in the future due to the newfound collision on your driving record.

At-Fault vs. Not-at-Fault Accidents

Another element that is factored in when determining how much your insurance rates will go up after an accident is whether or not you are at fault. In North Carolina, insurance premiums are likely to increase more if you are deemed to be at fault in an accident. 

If you cause an accident, your insurer will need to pay for the damage to the other driver’s vehicle and any injuries that occur. As a result, they will likely raise your rates to offset the cost of that claim. 

On the other hand, if the accident was not your fault, your insurance company may not increase your rates as much, though there can still be a premium hike eventually if not immediately after the incident. 

Your Driving History

Your driving history will play a role in how much your insurance premiums will increase after a crash. If you have a clean driving record without any previous accidents or traffic violations, your insurance company may be more lenient when it comes to raising your rates. 

However, if you have a history of accidents, speeding tickets, or other traffic violations, your insurance company may be more likely to raise your rates after an accident. 

In general, drivers with clean records are considered lower risk, so their premiums may not increase as much after a single accident. Conversely, drivers with a poor driving history or multiple previous accidents may face a higher increase in their premiums. 

Your Insurance Company’s Policies

Each insurance company has its own policies regarding rate increases after accidents. Some insurers may increase rates immediately after an accident, while others may offer accident forgiveness programs. 

Accident forgiveness programs are designed to prevent your rates from going up after a first-time accident, or they may forgive minor infractions, such as a fender bender. However, your insurance company might raise your rates if they view you as a higher risk. 

Some insurers may also increase your rates if you have a history of frequent claims, regardless of fault. These companies may see you as a higher-risk driver, and thus, your premiums will go up to reflect that risk.

How the Type of Insurance Coverage You Have Can Affect How Much Your Premium Increases 

The type of coverage you have can also impact how much your premiums increase after an accident. If you have comprehensive collision coverage, your insurer will pay for the damage to your own vehicle, and this can contribute to an increase in your premium. 

On the other hand, if you only have liability coverage, your rates may only go up due to the payout for damages to the other party. Now, let’s say you are involved in an accident where the other driver does not have insurance or sufficient coverage.

In this case, having uninsured/underinsured motorist coverage will make it possible for you to file a claim with your insurer. While you could still experience a premium increase, this type of coverage is especially useful when the at-fault party cannot be held financially responsible. 

Call Our Raleigh Car Accident Law Firm Today to Learn More About How Much Car Insurance Goes Up After an Accident 

The impact that a car accident has on your insurance premiums in North Carolina will depend on several factors. For example, whether or not you are at fault, the severity of the accident, your driving history, and your insurer’s policies can influence the outcome. 

As a driver, it’s important for you to be aware of the potential for rate hikes following a collision. If you were in a crash and you’re wondering what to expect to happen to your insurance rates, don’t hesitate to contact our Raleigh car accident attorneys right away. 

At Whitley Law Firm, we have over 120 years of combined experience. In that time, our attorneys have focused on protecting our clients, empowering our team, and serving our community. We answer the call, and we’re here to help.