If you’re involved in a serious collision, the effect on how much you pay for auto insurance likely isn’t your first concern. However, once you start tallying the expenses stemming from the crash, you’ll no doubt wonder if and how much your premiums will go up.
This depends on a number of factors, including who your insurer is, your driving record and more. Here we’ll look at a couple of key considerations.
The severity of the crash
A minor crash with minimal damage and no injuries, even if you’re determined not to be at fault, will likely remain on your driving record for three years. A crash that involves serious property damage, injuries or death can stay on your driving record for at least five years and maybe more.
Does fault matter?
If you’re at fault for a crash, you can expect it to affect your insurance premiums for as long as it’s on your driving record. How much they go up and for how long depends on your individual insurer’s policies.
Note that insurance companies are allowed to raise a driver’s premiums even if another driver caused the crash. However, not all do. Remember that insurance is based on risk. If someone is constantly involved in collisions, even if others are at fault, they may be considered a high-risk driver who is costly to insure.
If you are found to be at fault for a serious collision, you can be dropped by your insurer. That’s also to be expected if you are convicted of driving under the influence – even if you weren’t in a collision. That can mean having to settle for a lesser-known insurer with higher rates, less coverage and minimal customer service.
What about shared fault?
Relatively few collisions are 100% the fault of one driver on close inspection. Often, an investigation may reveal that the seemingly blameless driver could have acted in a way that would have at least minimized the severity of the crash. That’s why Texas uses the “modified comparative negligence” or “proportionate responsibility” model for compensation. This reduces the amount of damages the driver who’s less to blame can collect.
The assignment of fault for a crash can have a significant financial impact – both on insurance rates and compensation that can be collected. By getting experienced legal guidance after a collision, you have a better chance of minimizing your own financial damages.