If you are unlucky enough to get involved in a car accident, The first thing you need to do is to call the police; then, you must notify your insurance company about the situation.
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Do Insurance Rate Go Up After a No-Fault Accident?
In insurance terms, there are two types of car accidents; at-fault and no-fault. We all know at-fault means you caused the collision, but, What is no-fault? No-fault means you were not responsible for the crash.
How is fault determined?
Every state has its own fault determination rules. Some states have no-fault laws, which means regardless of the fault, each person deals with their own insurance company.
Most states determine the fault and whoever’s fault the accident was; both should deal with their insurance company. Depending on which type of state you live in, the claim you file and the type of car insurance you’re required to carry differs.
There are 38 states that are fault states. The other 12 states that are no-fault include:
- Utah
- Florida
- Hawaii
- Michigan
- Kentucky
- Minnesota
- New York
- New Jersey
- Pennsylvania
- North Dakota
- Massachusetts
How Much Does Insurance Increase After an Accident ?
Will a no-fault accident affect my record?
The answer to that question is a big yes. No-fault accidents will go on your driving record, as well as at-fault accidents.
When an accident happens, you make a claim, and because you filed a claim and took money from the insurance company, it will appear on your record, despite the fact that you weren’t at fault.
This claim you made for an accident you didn’t cause will stay on your record for 3 to 5 years.
Will a No-Fault Accident Increase Your Car Insurance Costs?
Generally, a no-fault accident will not cause your car insurance rates to rise. Due to the fact that the at-fault party’s insurance provider will be responsible for your medical expenses and vehicle repairs, your insurance rates will not rise.
However, please pay close attention that if you previously caused an accident or made a claim, your auto insurance rates may go up 10% after a no-fault collision, according to the Consumer Federation of America.
How Much Damage Would Total a Car?
Why does a not-at-fault accident affect my insurance?
Zebra solved this question for us!!! According to Zebra.com, seeing a rise in your insurance rate after an at-fault accident is normal, and everyone who has one expects it. However, not-at-fault accidents also affect the rate of your car insurance premium.
Almost all car insurance companies care about is the risks you bring to them. So, the more accidents you have, regardless of fault, the probability of you getting involved in another crash gets higher.
This means that with being involved in an accident, you show your insurance company you are a higher risk to insure.
Zebra.com had an insurance analysis of the states in 2021, and it showed not-at-fault accident raised policyholders’ rates $67 per year, on average, in 2020.
