If A Car Crash Isn’t Your Fault, Does Your Insurance Go Up?

AutoGuide.com Staff
by AutoGuide.com Staff
Photo by Robert Crum/Shutterstock.com

No one wants to think about being involved in a car crash. Whether the incident is your fault or not, stress and paperwork (not to mention the crumpled metal) mean little good can come out of incidents such as these. Well, except for that time your author found a crisp $50 bill after ditching his car during a snowstorm in his first year of university. Hey, there are exceptions to every rule.


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Still, while stress levels are likely to be high after a vehicle crash, those feelings can be mitigated by being well informed. A major question many drivers pose to an insurance agent centers around any sort of post-crash rate increase – especially if one is found not to be at fault for the incident. Like all good answers about topics involving a myriad of legalities: it depends.


Agencies such as Toyota Insurance act as unbiased independent agents, representing more than one insurance company and working for the customer to secure them the best deal on a package which fits their lifestyle. By being appointed with multiple carriers, Toyota insurance can help consumers potentially find better rates. Some insurance companies offer a product called accident forgiveness which can be added to a policy and can really save one’s bacon (or at least their bank account) should calamity strike.


Generally called an endorsement onto an existing insurance policy, accident forgiveness could prevent your insurance premium from increasing as a result of a crash. In some cases, the insurer may forgive the incident, meaning it won’t directly result in increased premiums. Yes, such an add-on will increase one’s yearly premium (or monthly payment) just like adding heated seats to a car causes its sticker price to increase; however, the peace of mind that comes with knowing one is likely not to be in for a rate hike should calamity occur is an expense this writer is more than willing to bear. Besides, should the unthinkable happen and an incident transpire, the lack of premium increase will pay for itself instantly.


Absent this handy piece of insurance coverage, insurance rates will generally spike for drivers who are at fault in a crash. Car insurance premiums are typically calculated, in part, by using one’s driving record and looking at events like traffic tickets and past claims. It is important to remember that auto insurance is calculated using risk factors. Statistically speaking, the more crashes in which a person is involved or the more tickets they have, the higher the risk for an insurance company when they decide to take you on as a customer.


In most instances, a person’s rate is not likely to increase if they are not at fault in a collision (I don’t envy the insurance company that has to explain THAT to a customer), especially if it can be proven the other driver was negligent through speeding or running a red light (just two examples). When you are involved in an accident that is the other driver’s fault, it is best to have the other driver’s carrier handle the insurance claim, because you will not be responsible for paying a deductible. However, if the other driver is uninsured, or if you handle the claim with your insurance carrier, you will have to recover against your own policy, and be responsible for paying the deductible. Check with your provider.


By the way, “fault” term is widely misunderstood and should refer to how any claims are handled, not that no one is to blame for an incident. Through the gathering of proof (you have a dash cam, right?), a study of traffic laws, and interviews with people involved, an insurance company will look at what happened to determine who is at fault for a crash – or at least what percentage. Yes, an insurance company can apportion blame if they feel it is appropriate to do so, say 75% to Driver A and 25% to Driver B.


Essentially, there is indeed a chance one’s insurance premiums may go up – especially after a collision in which they were at fault. It is a wise idea to talk directly to your insurance company (like the pros at Toyota Insurance) to get the best estimate of how much more, if any, you’ll be on the hook since they can give you details that fit one’s specific situation.

AutoGuide.com Staff
AutoGuide.com Staff

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