Will My Insurance Rates Go Up After a Car Accident in Florida?

Car accidents not only cause injuries and immediate financial consequences but can also impact your future financial costs. Many Florida drivers wonder, when they are involved in an accident and while dealing with the aftermath, how the accident will affect the future price of their auto insurance.

Much depends on the individual insurer's policy, but there are some basics you should know to protect your legal rights.

Factors That Impact Your Insurance Rates

A car accident goes into your driving history and will undoubtedly affect your future insurance premiums. But it will be just one of several factors that affect your premium:

Driving history: The premium will increase depending on the number and severity of violations the driver has previously committed, including accidents.

Credit rating: It is essential for the insurance company that the insured driver has good financial discipline, especially concerning late payments on car insurance.

Age: It is an essential factor in the assessment, especially for young drivers, who are often considered at higher risk by insurance companies. The premium for older drivers may also change.

Car type: This is a comprehensive approach that considers several characteristics. The age and cost of the car, as well as the presence of modern means in the vehicle that improve driving safety, can affect the premium in either direction.

Location and purpose of car use: Very similar factors also affect the premium. For example, a car owner used in a small town or only for commuting to work can get a lower auto insurance bill than a vehicle used for business or in a large metropolis.

Deductible: Has an inverse relationship with the insurance premium. The higher the deductible, the lower the premium.

Annual mileage: It is directly related to calculating the premium. The more intensively the car is used, the more expensive the auto insurance will be.

In addition to such apparent factors, some insurance companies may use additional factors to evaluate and calculate the premium:

License period: Although this factor sometimes affects the premium level, the driving history is still more important.

Gender: According to statistics, men are more prone to risky actions than women, especially teenagers.

Education: This indicator can also be determined from statistics. Drivers with a bachelor's degree or higher can save several tens of dollars compared to drivers without a high school diploma.

Marital status: Married is believed to be more responsible and careful.

What to Expect From Your Insurer After an Accident

After a car accident, the insurance company investigates the cause. The primary purpose of such an investigation is to determine the degree of fault of each participant. This indicator can serve as a trigger for deciding to change the insurance premiums.

According to Florida Code 626.9541, car insurance premiums should not be increased after an accident unless there is a proven "substantial fault". "Substantial fault" usually means a percentage greater than 51%.

Another criterion for changing the car insurance rate will be the severity of the accident's consequences. Here, we are not talking much about the decision to increase the rates as about the increased level. The more serious the consequences and the more expensive the settlement, the higher the rates may be.

If you need help from Florida car accident lawyers or free consultation with Panama City car accident lawyers, you can find them on the relevant pages of our website.

How Do At-Fault vs. No-Fault Accidents Affect My Insurance Rate?

Florida has no-fault insurance policies. All drivers must have a PIP (personal injury protection) policy to cover their injuries after an accident. The minimum policy amount is $10,000. This policy can cover 80% of medical expenses and 60% of lost wages.

Your insurance company handles your no-fault insurance claims. The at-fault driver's insurance company will fight the rest of the damages. You must file a third-party claim with the at-fault driver’s insurance company to do this.

For "no-fault" cases, you should not usually expect your auto insurance costs to increase. Plus, the law is for drivers who do not cause accidents. But there is a reasonable exception – if a driver gets into three or more accidents in three years, even if they are not at fault. In this case, the insurer has the right to revise the cost of the policy or even cancel it.

As for "at-fault" cases, everything is much simpler. If you are the culprit of the accident, you should expect your insurance premiums to be revised upward. This will depend on the terms of your policy. Some insurers offer an accident forgiveness option to help avoid a higher or significantly higher cost for your policy in the future.

Will My Rate Go Up Even If the Accident Wasn't My Fault?

As mentioned above, insurers are not supposed to revise premiums if the insured driver is not at fault in the accident. But real life makes adjustments, and you may face a policy revision upwards, even if you are found not to be at fault in a car accident.

In such a situation, there are several ways:

• you can include an accident forgiveness option in the contract if the insurance company offers it
• you have the right to file a formal complaint with the Florida Office of Insurance Regulation (FLOIR) and demand that the insurance company justify the additional costs or prove your fault in the accident
• contact another insurance company and get a policy from them.

Average Rate Increase After a No-Fault Accident

Increasing insurance premiums after an accident where the insured driver was not at fault is not shared and is not often used. Therefore, it is impossible to answer definitively about the increased level. It can only be assumed that the rise in such cases should not exceed 20%. This is evident from the statistics for accidents due to fault in Florida. For such cases, the increase is in the range of 22% - 77% depending on the insurer.

How Long Does an Accident Affect Your Car Insurance Rates?

If your insurance rate has increased due to an accident, you must first check your insurance company's policy. Typically, the increased rate applies for three to five years. This depends on the insurer and the severity of the accident. There may also be a gradual reduction in the rate of accident-free driving in the following years.

Therefore, the smartest thing to do is compare your insurance company's offer with other companies. Based on your situation, other companies may offer more favorable conditions.

Contact a Car Accident Lawyer to Deal With Your Insurer

Contacting a car accident lawyer would be the most reasonable decision, and it is advisable to do so from the beginning. The lawyer will help investigate the causes of the accident, collect evidence, and develop a defense strategy.

The first thing that is important after a car accident is to receive decent compensation. To do this, the lawyer will try to prove your innocence. And this, in turn, can significantly affect the insurance company's decision not to change the rate.

In the event of an increase in the rate, the lawyer will be able to professionally defend your interests if you choose the path of arguing with your insurance company.