Life gets busy, which makes it easy to forget that a car accident can happen at any time.
Although the number of crashes has declined, the potential risk always exists. While safety remains the priority, the effects of an accident may also have a financial impact. Even if you did not cause the accident, your insurer may still raise your rates.
What accident factors affect insurance rates?
While the severity of the incident, insurer and specific policy factor into rate increases, a no-fault accident may not affect insurance at all. Unfortunately, as a risk-based industry, a person who gets involved in multiple no-fault accidents will still likely see a hike in annual insurance costs. Additionally, if the at-fault person had minimal or no insurance, your insurance company may balance the costs by raising your rates.
How much will insurance rates go up?
Even if your rates increase, they will not go up as much as they would when at fault. For a person with a good record and no previous accidents, the rate hike may only have a minimal effect on the budget. A recent study by Zebra noted that on average, no-fault accidents raised rates by $67 a year.
How long will the increased rate last?
Paying more money for insurance comes with stress and hassle, but it does not last forever. As long as no other claims happen, most people see their rates start to drop in around three to five years.
Even a seemingly small car accident comes with potentially long-term consequences, making it important to stay focused during every ride.
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