Will My Car Insurance Go Up if I’m Not at Fault for an Accident? - Wakeford Law Firm (2024)

FAQs

Does your insurance go up after a claim that is not your fault? ›

Under California law, an insurer cannot increase your premiums when you aren't at fault.

Often people are of the opinion that the mere filing of a legitimate bodily injury claim will raise their rates. In fact, this is not true!

Unfortunately, the simple answer to this is yes. Whether the accident was your fault or not, making a claim will usually lead to an increase in your car insurance premium the next year and you could see an increase even if you don't make a claim.

If the insurer refuses a reasonable settlement offer within policy limits, it is playing a risky game. If, ultimately, “the judgment exceeds the policy limits,” the insurance company is liable “for the entire judgment,” including the amount in excess of policy limits.

If you file a claim with your carrier when you are not at fault, your carrier will eventually begin a process called subrogation. Essentially, this means that once liability is determined, your insurance carrier will send a demand to the at-fault party's carrier to pay back the damages that were paid out to you.

If you file claims often your insurer may view you as a greater risk, which may lead them to non-renewing your policy. Insurers may not drop a customer after their first one or two incidents. The first step is often to increase your car insurance rate.

In many situations, insurance companies will respond to offers and counteroffers quickly, usually making a decision within a few days to a few weeks. However, this can go on much longer. There are some situations where it can take weeks to months before you can agree to the settlement amount offered.

Let's say your vehicle is damaged due to another driver's negligence. Once GEICO settles your claim, we'll likely seek to recover your deductible, as well as the amount we paid, from the negligent party or that party's insurance company.

Dragging Out a Case

The insurance company knows that you need money. It might want to wear you down by delaying settlement so that you give up and accept a lower offer so that you can get money in your pocket. The other reason for delaying a case might be to create a statute of limitations defense.

Even if the other driver is not admitting fault, they're still legally obliged to share this information; if they refuse, it's a red flag, and you should note the vehicle's registration number and report it to the police.

Do I pay excess if I am not at fault? ›

You pay the excess in the event of any claim made on your insurance policy regardless of who is to blame. However, if it's proved the accident was the other person's fault and the full cost is recovered from their insurer, you may be able to recover this amount.

In general, when you make a claim against your insurance policy above a specific amount due to an incident that is primarily your fault, an insurer will increase your premium by a certain percentage.

Obligation of insurance companies: It is worth noting that when a settlement exceeds the policy limit, the insurance company is only responsible for paying the policy limit amount. The remaining balance is the responsibility of the at-fault driver.

In approximately 4% of auto accident cases, the settlement amount awarded to the victim exceeds the policy limit set by the insurance company. This percentage varies based on the severity of the accident. But this is not the end of the story. A Waco car accident lawyer at The Zimmerman Law Firm, P.C. is ready to help.

A limit is the highest amount your insurer will pay for a claim that your insurance policy covers. Think of it this way: It's like filling up a fishbowl. If you file a covered claim, your insurance policy will pay up to a certain amount. You're responsible for any expenses that exceed the limit.

Cancellation. Every insurance company sets its own benchmark for triggering a cancellation, but it is more likely that you'll face cancellation or non-renewal if you've made three or more claims within a three-year period. Most cancellations occur within the first 60 days of a policy, usually due to non-compliance.

Rates are raised much more if the accident is the policyholder's fault, but even if you weren't at fault, it is very possible your rate will increase.

Generally, your car insurance will not go up after a claim that is not your fault in Florida. This is according to Florida Statutes §626.9541(1)(g)3).

At-Fault. Most states, including California, operate on an at-fault insurance system. In simple terms, this means the at-fault party can be directly sued for causing the accident. It also means you can file a claim against the at-fault driver's insurance policy rather than going through your own coverage.