We hear this a lot: How much does insurance go up after an accident?
If you find yourself asking this question, you are not alone! You likely have questions about how an accident will affect your premium, regardless of whether you were at fault or someone else was responsible.
Your insurance company will be able to give you the most precise answers about an insurance increase after an accident based on its details, the cost of the damage, and your specific policy. However, we can give you some useful guidance about what to expect.
When Will an Insurer Raise Your Rates?
Auto insurance companies set your premium based on how safely you drive. Well, more accurately, how safely they believe that you drive!
If you are a reckless driver who is a hazard on the road, you will have much higher premiums than someone cautious and defensive in their driving habits. Their risk assessment looks like this: the worse of a driver you are, the more likely you are to be in a collision. And the more likely you are to be in a collision, the more likely it is that the insurance company will need to pay out a claim.
Why does my car insurance premium increase?
When an auto collision occurs, the insurance company wants to determine if you could have done anything to stop it.
Imagine that you were cut off in traffic by someone who slammed on their brakes. You tried to stop, but you still ended up crashing into the back of their vehicle. The fault of the accident is clearly the driver who cut you off.
However, your insurance company now sees you as a riskier driver because you did not manage to avoid the accident. They think, “Maybe you could have hit your brakes faster” or “Maybe you weren’t paying enough attention to respond fast enough to stop without hitting the other vehicle.”
Yes, the other driver was at fault, but now your insurer believes that you are a riskier driver to insure. Therefore, your premiums will go up after the accident.
What Else Affects Your Premiums?
In addition to your driving and accident history, your insurance company will consider the following factors when deciding what to charge for your insurance premium:
- Your age: More experienced drivers will have a lower premium than younger, newer drivers.
- Your gender: Because men tend to have more accidents than women, their insurance premiums are typically higher.
- Where you live: Insurers will charge higher premiums to drivers who live in areas with higher crime rates.
- The features of your car: Cars with safety features that are designed to prevent accidents may be insured at a lower rate.
- Your car’s make and model: Expensive cars are more expensive to insure.
Insurance Rates in Kentucky After a Car Accident
The average insurance rate for a driver in Kentucky is between $748 and $2,128 per year.
So how much does car insurance increase after a car accident? The rates could nearly double. NerdWallet explains that insurance rates can go up by $2,072 after an accident, which is one of the highest increases in the country. (The only states that increase more are California and Florida.)
You may not see a rate increase if your insurance plan offers Accident Forgiveness. They may put a hold on premium increases after an accident. Inquire with your insurance company to see if you can carry accident forgiveness as an addition to your policy, which will come with an additional cost.
You may also be offered an accident forgiveness policy by being a safe driver with a long history with your insurer.
Finally, if you are ever in an accident that you absolutely could not have done anything to prevent, such as being rear-ended while legally stopped at a traffic light, you shouldn’t see a premium increase.
Kentucky’s No-Fault Law
Kentucky is a “no-fault state.” Your medical bills will be covered by your insurance company, not the other driver’s, regardless of who is at fault for the accident. Typically, Kentucky drivers carry $10,000 in Personal Injury Protection (PIP) insurance.
That said, Kentucky does allow drivers to opt-out of the no-fault system. If you have opted out of the no-fault system, you can sue an at-fault driver for your medical bills.
Get Help After an Accident from Central Kentucky’s Best Car Accident Attorneys–McCoy & Sparks
If you have been injured in a car accident that was caused by another driver, McCoy & Sparks Law Offices is ready to help. We protect your rights following an accident! Instead of worrying about how much your insurance will go up after an accident, let our attorneys fight for you.
Our dedicated team of Kentucky car accident attorneys will work closely with you to resolve your case. When you choose McCoy & Sparks, you are choosing a compassionate, knowledgeable team of attorneys who will provide you with the personal attention you deserve.
Contact McCoy & Sparks for a Free Case Evaluation
Contact McCoy & Sparks Attorneys at Law, your Central Kentucky car accident lawyers at 1-844-4KY-WINS, or fill out our online form to set up a free consultation.
Our offices are located at 212 W. Stephen Foster Ave. in Bardstown, Kentucky.