How To Avoid an Insurance Increase After an Accident

How To Avoid an Insurance Increase After an Accident

After getting into a car accident, taking the right steps can help you avoid a big increase in your auto insurance premium.

Key Takeaways

• Watch what you say at the scene of the accident. Even a simple “I’m sorry” can be misinterpreted as admitting blame and may hurt you later.
• Having solid evidence can prove you weren’t at fault if an insurer tries to raise your rates or deny your claim.
• Legal help can protect you when insurance companies push back.
  

Getting into a car accident is stressful. Between dealing with car repairs, missed work, and phone calls from car insurance companies, it’s normal to wonder how the crash will affect your monthly bills. Many drivers fear their auto insurance rates will go up, with higher premiums that stick around for years.

You can’t change what happened, but you can control what happens next. There are practical steps you can take to protect your budget and reduce the risk of a premium hike. This guide explains how to avoid an insurance increase after an accident so you can focus on your recovery instead of worrying about higher coverage costs.

7 Ways To Avoid an Insurance Increase After an Accident

Here are seven tips to help you prevent an auto insurance premium spike after a car wreck.

1. Don’t Say the Accident Was Your Fault at the Scene

Watch what you say immediately after a crash. Avoid taking responsibility for the accident or even saying “I’m sorry” at the scene. Even if you think you might be partly to blame, it’s not up to you to decide liability on the spot. You might later find evidence showing you weren’t at fault, but an early apology could be taken as an admission of guilt.

It’s especially important not to say anything that sounds like an admission of fault if you were hit by an uninsured driver. When the other driver has no insurance, there’s no insurance company on their side to accept responsibility for the crash. If you file an uninsured motorist claim, your own insurance company may challenge who caused the crash before agreeing to pay.

If the insurer decides you were even partly at fault, your claim could be reduced or denied. That can leave you paying out of pocket for car repairs, medical bills, and other expenses that insurance would normally cover. A careless statement at the scene, such as “I didn’t see you coming,” could be used to shift blame onto you and make these costs harder to recover.

2. Take Photos and Gather Information Right Away

If you’re safe and able to, you should collect as much evidence as possible right after the accident. Use your phone to snap pictures of vehicle damage, the overall scene and any visible injuries.

You also need to exchange contact and insurance information with the other driver and get the names and numbers of witnesses. Detailed photos and witness info help tell the true story of what happened. It’s much harder for anyone to twist the facts or pin the blame on you when the evidence clearly shows the truth.

3. Know How Fault Works in Your State

Insurance rules vary by state, so learn whether your state is “at-fault” or “no-fault.” In at-fault states, the driver who caused the accident must cover the damages, usually through their liability insurance. In no-fault states, each driver’s own insurance (personal injury protection) covers their medical bills, no matter who caused the crash.

For example, Arizona has a law that generally prevents insurers from raising your premium for an accident you did not cause. However, insurers may still review your claim history in certain situations. So if you’re clearly not at fault in an accident in Arizona, your insurer can’t hike your rates for that accident. Knowing your state’s liability laws helps you anticipate how an accident claim might affect your insurance.

4. Be Careful When Giving Statements to Insurance Companies

Be very cautious about what you say to adjusters after an accident. Give your own insurance company the basic facts of what happened, but don’t volunteer unnecessary details or admit responsibility.

Remember, you’re generally not required to give a recorded statement to the other driver’s insurance company. If you feel pressured to do so, it’s OK to say you’re not ready to give a statement or that you want to speak with an attorney first. Taking this step can help protect you from having your words taken out of context or used against you later.

5. Check If Your Policy Has Accident Forgiveness

See if your auto policy includes accident forgiveness. Accident forgiveness is a perk that prevents your rate from increasing after your first accident, even if you were at fault. Without it, an at-fault accident will almost always result in a rate hike on your next policy renewal.

6. Think Twice Before Filing a Claim for Small Damage

Not every fender-bender needs to involve your auto insurance. If the damage is minor and no one is hurt, you might choose to pay for repairs out of pocket instead of filing a claim. Even small accident claims may lead to insurance premium increases, so skipping a claim for a little scratch or dent can save you money.

For instance, if the repair cost is close to or below your deductible, it may not be worth making an insurance claim. By handling a small fix yourself, you keep your claim record clean and avoid a possible rate hike.

7. Get Legal Help if Fault Is Disputed

If there’s a serious disagreement over who caused the accident, consider getting a car accident attorney involved. Sometimes the other driver’s insurer denies a claim or insists the wreck was your fault even when you believe it wasn’t. In that case, a lawyer who knows how to gather evidence and challenge the car insurance company’s decision can make a big difference in the claim’s outcome.

If an insurance company wrongfully denies your claim, an attorney can help you appeal or fight the denial. Legal help can better ensure that you aren’t stuck with unfair costs and help protect your rights.

When an Accident-Related Insurance Increase Is at Risk, Get Legal Help

It’s possible to avoid an insurance increase after an accident, even when an insurance company tries to push blame onto you. The Phoenix personal injury attorneys at Sargon Law Group know how to deal with insurers, challenge unfair decisions, and fight for the outcome you deserve.

If you’re worried about having to pay a higher premium or having your claim denied, schedule a free consultation with one of Sargon Law Group’s car accident attorneys and get clear answers about your options.