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In Missouri, drivers are required to carry a car insurance policy. Those who cause an accident will be seen as "increased liability" and may have to pay higher insurance premiums.
Most insurance companies increase auto insurance premiums to make up for what they lose by paying a car accident claim and the money they might have to pay for future incidents.
However, people's car insurance rates shouldn't go up if the accident was caused by someone else. Below is more information on how to avoid this increase.
How Auto Insurance Works in Missouri
By purchasing an auto insurance policy, drivers are paying for their peace of mind, as it'll cover the expenses that other people incur in an at-fault accident. Powell Law Firm can also help answer questions such as Is it worth repairing a car after an accident?
Those who have been injured and sustained financial damages in a no-fault accident can also benefit from auto insurance, as they'll be able to file a claim to get compensation from the other driver.
If an individual causes or significantly contributes to a car accident, the insurance company will probably classify them as "higher-risk policyholders." This often results in an increase in auto insurance premiums.
However, a person's car insurance rates shouldn't go up after not-at-fault accidents, which are those they didn't cause. Powell Law Firm can also advise on right of way laws in Missouri.
Increase in Car Insurance Premiums: When Does It Happen?
More often than not, a person's car insurance premiums only increase if they're involved in a chargeable accident, which means they're over 50% at fault for victims' injuries, damages, and deaths.
In Missouri, car accidents are considered "chargeable" if they cause over $500 worth of property damage. That means auto insurance premiums shouldn't go up if the collision caused damage valued at a lower amount.
However, other factors play a role in whether or not these premiums can be increased, such as the cost of damages and the policyholder's history of previous accidents or driving records.
Below is more information about what most insurance companies look at before increasing premiums.
The Party That Caused the Accident
As explained above, car insurance premiums typically go up when policyholders are involved in at-fault accidents, which means they're responsible for damages. Under Missouri law, insurance carriers are required to absorb the percentage of liability.
In contrast, if the accident was caused by someone else, the at-fault party's car insurance company should pay for repairs and medical bills. Auto insurance premiums shouldn't go up in these cases.
The following examples are scenarios where a person’s car insurance premium shouldn't increase:
Their car is hit when they are legally parked.
The vehicle is damaged or the driver loses control of the car and wrecks after it is hit by a falling object.
Their car is hit from behind in a rear-end collision.
The Cost of Damages
The average cost of damages can also affect the amount a person must pay for their car insurance after an accident. If insurance companies have to pay less than $1,000, policyholder's premiums probably won't go up.
However, when people cause serious accidents that result in severe injuries or huge losses, they'll be penalized with a car insurance rate increase.
The Policyholder's Driving Record
Some insurers don't raise rates if the policyholder files a claim for their first accident or if they have not been involved in collisions or similar situations for a specific number of years. In these cases, they offer “accident forgiveness” programs.
However, other insurance companies always increase rates after a policyholder makes a claim, whether it is the first time or they have been safe for years.
How Much Can Car Insurance Rates Increase After an Accident? How Long Can This Increase Last?
Insurance companies have set different criteria to determine how much rates should increase after a collision. Some don't charge more if the accident is small, while others offer cheap car insurance policies
However, there are a few companies that double rates for drivers that have caused accidents in the past.
The latest reports show that full coverage car insurance rates increase by 42% on average after an at-fault accident. If the incident is serious, this increase can be significantly higher.
On average, an increase in costs to maintain a car insurance policy can last up to three years after the accident.
When Car Insurance Premiums Shouldn't Go Up?
As mentioned, car insurance rates shouldn't increase when policyholders are involved in no-fault accidents, which means the crash was caused by the other driver. However, this may apply in other scenarios, including the following:
Policyholders’ vehicles are damaged in hit-and-run incidents.
The other driver involved in the accident has a history of moving traffic violations, but policyholders do not.
The crash or damage was caused by a falling object, flying gravel, or animal.
The car insurance company includes accident forgiveness.
How to Lower Car Insurance After an Accident
Even without accident forgiveness, people could lower their car insurance rates after a claim. This is what they can do:
Reduces their deductible on collision and comprehensive coverage
Compare different companies and choose the one offering cheap car insurance
Look for discounts
Change the car, since rates are usually higher for more expensive vehicles
Change your coverage options
How Can People Prove That They Weren't At Fault for a Car Accident?
If a person is involved in an accident caused by someone else, they can prove that they weren't responsible to prevent their car insurance premiums from increasing.
Policyholders must present evidence to prove that the other party was at fault for the crash and subsequent damages if they discover that the insurance company is treating their case as a chargeable accident.
To prove the other party's liability, a policyholder can submit the following:
The police report mentioning the other party's violation
The other party's signed admission of guilt under oath
Photographs and videos of the accident scene
Eyewitness statements from non-family members saying that the other party caused the accident
Testimony from crash experts on how the accident occurred
Contact an Experienced Lawyer Today!
While filing a car accident claim can cause insurance rates to increase, people shouldn't pay higher premiums if they weren't at fault for the collision. To explore options to avoid this increase, they should contact an experienced auto accident lawyer in St Louis MO.
It isn't fair for people to pay higher car insurance premiums if they aren't responsible for the accident. Individuals who are wrongly accused can contact a seasoned attorney at Powell Law Firm.