As you begin the insurance claims process after a car accident, you’ll encounter specific industry terms that can impact your finances for years to come. For example, the accident may be classified as "chargeable" or “non-chargeable.” What is a chargeable accident, and how could it affect your insurance premiums down the road?
What Does ‘Chargeable Accident’ Mean?
“Chargeable accident” is an incident where your insurance provider determines you’re 50% or more at fault for the collision. In the insurance industry, "chargeable" essentially means the company can charge you more for your policy because they’ve deemed you a higher risk.
While a chargeable accident may result in a surcharge or premium increase for several years, it doesn’t mean that you’re legally liable for the accident.
What Does ‘Non-Chargeable Accident’ Mean?
A non-chargeable accident is one where you’re not responsible for the crash. This usually happens when something outside your control caused the damage, like a tree limb falling on your parked car or another driver hitting you after running a red light.
If you’re clearly
not at fault, your insurance company often will not raise your rates based on that specific incident, depending on the insurer’s rules and state law. This classification protects drivers from being unfairly penalized for the negligence of others.
What Types of Accidents Are Usually Considered Chargeable?
Generally, a
car accident is considered chargeable when the insurer decides your actions directly caused the crash. Common examples include:
- Rear-end collisions where you struck the car in front of you.
- Single-vehicle accidents, such as hitting a guardrail, a tree, or a building.
- Accidents that involve a serious moving violation, such as DUI or reckless driving.
- Collisions that happened while you were speeding or failing to yield the right of way at an intersection.
When accident costs
exceed your policy limits, you may face out-of-pocket financial risk. In those higher-stakes cases, a chargeable designation can have more serious consequences. This is why it’s important to speak with a personal injury lawyer, who can review how the insurance company assigned fault.
Who Decides Whether an Accident Is Chargeable?
