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Navigating Potential Increases in Car Insurance After an Accident

Nov 15, 2023

Auto Insurance

Navigating Potential Increases in Car Insurance After an Accident

Car accidents can be stressful, and dealing with the aftermath can be equally challenging. One of the common concerns that drivers have after an accident is whether their car insurance premiums will increase. In this blog, we will delve into the factors that influence insurance rates after an accident, focusing on understanding the concept of being substantially at fault and acting in good faith.

What Is Substantially at Fault?

Being substantially at fault in an accident means you are primarily responsible for the collision. This determination is made based on factors such as traffic laws, eyewitness accounts, and the assessment of the insurance companies involved. If you are found to be substantially at fault, it is more likely that your insurance premiums will be affected.

What Is Good Faith?

Insurance companies must operate in good faith, meaning they must act honestly, fairly, and ethically when handling claims. It includes accurately determining faults in accidents. If an insurance company finds that you were not substantially at fault, they should not raise your premiums.

Raising Insurance Rates for Policyholders Who Were Substantially at Fault

If you are determined to be substantially at fault in an accident, your insurance rates may go up. This increase is based on the higher risk associated with your driving behavior. However, it's important to note that not all accidents will lead to a rate hike. Factors such as the accident's severity, your driving history, and the specific policies of your insurance provider will all play a role in the final decision.

Can an Accident Affect My Policy If I Was Not at Fault?

If you were not at fault in an accident, your insurance premiums should not increase as a direct result of the collision. It is because you are not considered to be substantially at fault. However, it's crucial to inform your insurance company about the accident and provide all necessary details to ensure a smooth claims process.

While being substantially at fault in an accident can lead to increased car insurance premiums, it is not a guaranteed outcome. Factors such as good faith handling of claims and your specific insurance provider's policies will also come into play. If you find yourself in this situation, it's essential to consult with your insurance agent to understand the potential impact on your policy thoroughly. Remember, being informed is the first step toward making the best decisions for your coverage.

Get Personalized Assistance with Your Car Insurance Needs at Humble Insurance Agency

At Humble Insurance Agency, we understand the concerns and questions that arise after an accident. Our experienced team is here to guide you through the process and provide you with the support you need. Contact us today for personalized assistance with your car insurance needs.

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