If someone hits your car, your insurance rates generally don’t go up as long as you file an insurance claim against the at-fault driver’s liability coverage. If you don’t have the at-fault driver’s insurance information, you may need to file a claim with your collision coverage or uninsured motorist property damage
(UMPD) insurance, though—which can lead to a small surcharge, depending on your insurer. It’s everyone’s worst nightmare: you find out your parked car got side-swiped
in a hit-and-run accident and the at-fault driver left no insurance or contact information. While filing a police report is the obvious next move here, who’s going to pay for the damages to your vehicle and how is that going to impact your auto insurance
rates? Let’s take a look. Does your car insurance rate go up if someone hits your car?
It can, but it depends on several factors. Namely, how fault is calculated in the car accident, whose insurer you file a claim against, and whether or not your insurance provider increases insurance costs for not-at-fault claims.
In most cases, your insurance rates will stay the same if the other driver is at fault and you file an insurance claim against their liability coverage
. However, your insurance rates may increase if you need to file a claim on your own policy, regardless of who was at fault (depending on your insurer). With that said, your insurance rates could increase after someone hits your car if:
You are deemed partially (or completely) at fault for the accident and the other driver takes out a liability claim against you
You’re forced to file either an uninsured motorist property damage (UMPD) or collision claim through your own insurance policy—usually when the other driver left the scene of the auto accident (aka a hit-and-run) and left no insurance information with you
Here are some examples. Let’s say you’re driving home and another car runs a red light
and collides with your SUV. Fortunately, no one is injured, but both vehicles need a significant amount of repairs. You file a claim
against the other driver’s insurer, and since an insurance adjuster determines that the other driver is 100% at fault, you (and your insurer) aren’t responsible for any of the damages. In this scenario, your insurance rates will likely remain unchanged because no claims were made on your insurance policy. Alternatively, let’s say you return to your parked car after work and discover that your side mirror has been completely torn off, the side panels are severely scraped, and the driver who did it is nowhere in sight. It’s a classic hit-and-run, so you call the police to make a police report.
Unfortunately, the culprit isn’t on any cameras and there are no witnesses to identify them
. You’re forced to use your own collision insurance
to pay for the damage—but since your insurer raises rates for any claim, your insurance rate increases. RECOMMENDEDNo spam or unwanted phone calls · No long forms
Do not-at-fault accidents raise your insurance premiums?
If you’re involved in an auto accident and an insurance adjuster deems the other driver completely at fault, you generally won’t see a surcharge in your rates as long as you file a claim with the at-fault driver’s insurer.
However, when contact information and insurance information is not exchanged because the at-fault driver fled the scene of the accident, it may be impossible to file a claim against that driver’s liability coverage. In this case, you’ll usually need to file a claim with your own car insurance company and use collision coverage or UMPD coverage to pay for the damages.
Unfortunately, some insurance carriers still impose a small surcharge even on no-fault claims such as these. As some consolation, no-fault claims average only a 10% increase in rates compared to the 49% increase an at-fault driver faces.
Not all states allow insurance companies to increase rates for not-at-fault drivers. In fact, Oklahoma
and California
both have laws prohibiting no-fault surcharges. Here’s the bottom line: when shopping for insurance quotes
, ask an insurance agent whether or not their company increases rates for policyholders after a no-fault claim. According to a study by the Consumer Federation of America, GEICO
and Progressive
tend to surcharge no-fault claims more than Allstate
and State Farm
, but this can vary depending on your state and individual background. At-fault vs. no-fault states
Different states have different practices when it comes to how much liability damages an at-fault driver is obligated to cover. If you live in an at-fault state, the at-fault driver is responsible for paying out property damage
and bodily injury damages
sustained by the other driver. If you live in a no-fault state
, the at-fault driver is only responsible for the other driver’s property damages, but the no-fault driver must cover their own bodily injury costs through either personal injury protection (PIP)
or MedPay
coverage unless the accident resulted in extreme injuries or death. Depending on the state, certain modifications apply to liability payments, as well. For example, Pennsylvania
(a no-fault state) allows drivers to opt into a full tort plan, which offers much of the same coverage as an at-fault tort system. Most at-fault states use a comparative negligence tort system, as well, through which damage collection is based on a percentage of fault—meaning the driver who’s less at fault could still be required to pay a small percentage of liability damage.
MORE: How different types of car accidents affect your insurance rates
How much will your insurance premium go up after a car accident?
The amount your car insurance premium goes up after a motor vehicle accident
depends on your insurance company and whether or not you’re at fault. In general, though, at-fault claims can increase your rates by as much as 49% while not-at-fault claims can increase your rates by as much as 10%. Some auto insurance companies offer accident forgiveness
regardless of fault, which can help you waive an insurance surcharge if you enrolled in the program before the accident occurred. Typically, this will only apply to your first at-fault accident and is only active for a limited timeframe. The exact amount your insurance rates increase also depends on your driving record
. For example, a second or third at-fault collision in a short time frame will lead to much higher surcharges than a first offense. High-risk behavior, like a DUI
or hit-and-run, may even result in an insurer not renewing coverage—should this happen, you’ll need to find high-risk car insurance
, which is much more expensive than standard car insurance. Who compensates you after a not-at-fault accident?
Typically, the other driver’s liability insurance compensates you for your vehicle’s repairs if you’re deemed not at fault in an auto accident. If you live in an at-fault state, the at-fault driver’s insurance may cover your medical bills as well.
Drivers in no-fault states will usually be compensated for bodily injury damages from their own PIP or MedPay coverage. Property damages are still covered by the at-fault driver’s liability insurance in most cases.
That said, many states assign fault based on percentages. So if it’s determined that the other driver is 75% at fault, but you’re 25% at fault in an accident, some states may hold you responsible for paying 25% of the other driver’s damages while their liability coverage is only responsible for 75% of yours.
Other states may still hold the at-fault driver fully responsible in this scenario since their percentage of blame is higher than 50% or 51%. To get a better idea of how fault distribution impacts your liability coverage, you’ll want to check which comparative negligence system your state follows.
In a hit-and-run incident or a collision with a driver who lacks sufficient coverage, you may need to use your own collision or uninsured motorist coverage to compensate for your damages. In this case, you will usually have to pay out of pocket for your deductible before your coverage will kick in.
MORE: Should I report a car accident to my insurance company?
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makes choosing new insurance as easy as grocery shopping. Even though I had a car accident within the past 2 years, Jerry found me a great deal with Nationwide–I went from paying $340 to $90 a month!”—Pan N.
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