Will My Insurance Go Up if I Wasn’t at Fault for an Accident?

When you are involved in a car accident claim, your main focus is proving the other driver’s fault and recovering the compensation you deserve. But beyond the resolution of your claim, you may be wondering how a car accident can affect your life in the long term.

One of the most significant long-term concerns for people who are involved in car accidents is how the collision will impact their car insurance rates. It is a common assumption that the price of car insurance will always raise after a car accident, but this may not be true in your case.

Why Does Insurance Increase After an Accident?

The price of insurance is based on your insurance company’s predicted likelihood of having to pay claims in the future. To determine the initial cost of your auto insurance plan, insurance providers evaluate your age, gender, location, type of car, driving history, and a number of other factors to predict the statistical probability that you will be involved in an accident (and therefore, the probability that they will need to pay a claim.) When you are involved in an accident, it can show the insurance company that you are an at-risk driver, hence contributing to a rise in the price of your insurance rates.

Is My Insurance Company Allowed to Increase My Rates After an Accident that was Not My Fault?

The state of Arizona is an at-fault state, meaning people who are injured in car accidents (and are not at fault for the collision) must file a claim with the other driver’s insurance company in order to recover compensation. If you are not liable for a car accident and your claim goes well, you should be able to receive compensation without the help of your own insurance company. However, you will still need to report the accident to your insurance provider in most cases. Even if a car accident was not your fault and your insurance company did not have to pay your claim, they could still increase your rates. This will depend on the terms of your car insurance policy. Read your policy carefully to determine if rate increases are a possibility under your plan.

The Rafi Law Group legal team is dedicated to helping the victims of car accidents recover the compensation they deserve. If you were injured because of another driver’s negligence, contact us to discuss your case.

To schedule a free case evaluation with our legal team, complete our contact form or call (623) 207-1555.

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