It is common for drivers involved in a car accident to try to avoid reporting the accident to their respective insurance companies, regardless of who bears fault for the incident. Usually, once insurance companies know of the accident and have to pay out coverage rates, policyholders see their insurance rates rise. But sometimes, sidestepping insurance involvement is just not possible. So, how much does insurance increase after an accident?
It is not possible to predict just how much insurance rates will rise as increases depend on a variety of factors. The Greenville car accident attorneys at Ricci Law can help you through the aftermath of a car accident. We will review your insurance policy and communicate with the other party’s insurance company. You can count on a Greenville auto accident attorney to work to get you compensation for your losses and help you find ways to minimize the effect your accident will have on your insurance rates.
North Carolina Insurance Requirements
To register a vehicle in North Carolina, the owner must purchase auto insurance policies meeting the State’s minimum coverage requirements. As per Article 13 of the Vehicle Financial Responsibility Act, vehicles must have continuous liability coverage, and Statute 20.279.21 establishes the requirement for uninsured/underinsured motorist insurance.
Liability Coverage
If you are at fault for an accident that harms another party, liability insurance covers their injuries and property damage. You, your family members, or anyone using your vehicle with your permission is covered. The North Carolina Department of Motor Vehicles (DMV) establishes minimum liability coverage amounts as follows:
- $30,000 for bodily injury for one person
- $60,000 for bodily injury for two or more people
- $25,000 for property damage
Of course, if you are not at fault for the crash, a Greenville car accident attorney from our firm can help you file a claim against the at-fault party’s liability policy.
Uninsured Motorist (UM) Coverage
UM insurance provides protection when you or someone else covered under your policy is injured by an at-fault, uninsured driver. UM provides bodily injury and property damage coverage. Underinsured motorist coverage (UIM) offers protection when an at-fault, underinsured driver causes injury. The liability limits of an underinsured driver are lower than your UIM limits and, therefore, not enough to cover your losses. UIM does not cover property damage.
Greenville car accident lawyers from our team can help whether your accident is with an insured or uninsured driver. Sadly, many car accidents cause severe injuries that bring life-changing consequences and serious financial distress. Your financial future should not be destroyed by someone else’s negligence, and an auto accident lawyer in Greenville, NC will work tirelessly to see that future restored.
Experienced car accident law firms can review the details of your policy after an accident. An auto accident attorney from Ricci Law will work to keep your company, the at-fault party’s company, or both insurance companies accountable for upholding their policy obligations.
Factors Affecting Insurance Rates
How much your insurance policy costs depends on how much coverage you buy. You can exceed the minimum limits or add additional coverage categories, among other factors. The process your insurance company implements to determine your rates is called “underwriting.” Each insurance company follows its own specific underwriting guidelines, but the Insurance Information Institute (iii) identifies some common rate-affecting factors.
Your Driving Record
Clean driving records make for lower insurance premiums. The more accidents in your history, even those that are not your fault, the higher your rates. Traffic violations and resulting points on your license also increase rates.
Having no driving record will also bring higher premiums. New drivers do not have experience and are considered high-risk drivers. Three years is often the timespan used to credit new drivers with “experience.” A clean experience period can lower rates.
Your Age
Mature drivers, those 55 and over, are often more cautious and courteous on the road, tend to drive less or travel shorter distances, and may get the benefit of lowered rates. Drivers under age 25 fall into that “inexperienced” category and see higher premiums.
Your Gender
According to the Insurance Information Institute, “…women tend to get into fewer accidents, have fewer driver-under-the-influence accidents (DUIs), and—most importantly—have less serious accidents than men.” As a result, women may see lower insurance rates than men.
Your Vehicle
Your car’s value, theft probability, average repair costs for the vehicle, its engine size and power, and the safety record for that type of vehicle are also prominent factors. Fancy sports cars or expensive models may be more enticing to a thief than a family sedan–drivers of those cars may also take more risks by speeding or “testing” engine power. On the other hand, if your car has more sophisticated safety features, you may qualify for lower rates.
Vehicle Use
Premiums can rise along with the miles you travel. More time on the road raises the possibility of an accident. If you have long daily commutes, your premiums will likely be higher than if you only drive occasionally.
Where You Live
Insurance companies consider the vehicle and population density, road conditions, hospital costs, and accident, theft, and vandalism rates for the area where you live. Typically, premiums are higher in urban locations than in rural areas or small towns.
Accidents Affect Insurance Rates, but Greenville Auto Accident Law Firms May Be Able to Help
If an accident was not your fault, your insurance cannot charge you with “insurance points.” However, there may be language in the company’s underwriting guidelines that allows them to raise your rates anyway. Have our Greenville car accident law firm review your policy to make sure your company treats you fairly.
According to U.S. News & World Report, insurance rates usually go up following an accident. Their analysis indicates the national insurance rate for drivers with one accident in their history is $2,940 per year. For those with an accident-free record, the average rate is $2,068. Of course, rates can vary depending on underwriting factors and from one insurance company to the next.
Partner with a Greenville car accident lawyer after your accident, and your attorney can review your policy, fight to protect you from unfair rate hikes, and help you seek compensation from the at-fault party.
Unfortunately, insurance companies, even your own, put their own best interests first–not yours. It can be difficult to understand the fine print of an insurance policy. A car accident lawyer can explain your policy to you and communicate with your agent and representatives for the at-fault party so you can see the best resolution possible.
North Carolina’s Safe Driver Incentive Plan
North Carolina is committed to making roads safer and has implemented the North Carolina Safe Driver Incentive Plan (SIPD) as part of its safety plan. Designed to give drivers a “financial incentive to practice safe driving habits,” the SDIP issues drivers penalties, or points, for traffic violation convictions and at-fault crashes.
If drivers avoid points through their safe driving, their rates stay low. However, under this plan, even one point can cause a major rate hike. Experienced auto accident attorneys may from our team, be able to help you reduce your violation and subsequent points by finding evidence to prove the other driver is to blame.
SDIP Points, Violations, and Rate Hikes
The SDIP is specific in naming violations and corresponding points and rate hikes, as shown in the North Carolina Department of Insurance (DOI) Consumer’s Guide to Automobile Insurance. The following provides a general account of the plan:
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- 1 point: Moving violations, minor speeding infractions, at-fault accidents causing injuries or property damage within specified dollar amounts: 40% rate of increase
- 2 points: Illegal passing, following too closely, driving on the wrong side of the road, at-fault accidents causing property damage within certain dollar amounts, speeding violations with specific conditions: 55% rate of increase
- 3 points: At-fault accident causing death or total bodily injury and property damages within specified amounts: 70% rate of increase
- 4 points: Reckless driving, hit-and-run causing property damage, passing a stopped school bus, speeding infractions with specific conditions, driving after consuming alcohol or drugs as a minor: 90% rate of increase
- 8 points: Driving with a suspended or revoked license or registration, driving aggressively: 200% rate of increase
- 10 points: Engaging in highway racing or knowingly lending a vehicle for highway racing purposes, speeding to avoid arrest: 260% rate of increase
- 12 points: Manslaughter, negligent homicide, pre-planned highway racing, knowing lending a vehicle for planned racing, hit-and-run causing injury or death, driving while intoxicated or impaired, transporting illegal liquor to sell: 340% rate of increase.
If your insurance policy is $2,000 per year, and you incur one SDIP point, that 40% rate of increase bumps your rate to $2800. A 3-point infraction brings it to $3,400. An 8-point infraction raises your yearly rate to $6,000.
When a driver commits one of these infractions and causes an accident leading to your injuries, seek help from a car accident law firm. While the at-fault party may face penalties, including insurance hikes, those penalties do not compensate you for your losses. A car accident attorney from Ricci Law will fight to hold the negligent driver accountable for paying you damages.
Ways to Prevent Insurance Increases
Planning ahead can help you avoid some insurance rate increases. Taking proactive steps–before you ever have an accident–may help prevent rate hikes in the event of a crash.
- Keep your driving history clean
- Take a defensive driving course
- Investigate “accident forgiveness” options
- Bundle insurance policies for a discount
- Look into automatic payment plans–they may include a discount
- Ask about driver affiliation discounts–some companies reduce premiums for first responders, military personnel, government workers, or others
When you partner with the car accident lawyers from Ricci Law after your accident, we can help you fight for compensation and help you look into options for lowering your rates.
Our Greenville Auto Accident Law Firm Is Ready to Help
While insurance rate hikes are a concern following an accident, you will also have additional, even more serious problems to navigate. Connect with a Greenville auto accident lawyer from Ricci Law for the help you need.
Car accident victims often sustain serious physical injuries and subsequent emotional and financial trauma. Auto accident lawyers can work to secure a settlement or trial verdict to stabilize your finances and get you justice. The sooner you reach out to our Greenville auto accident attorneys, the better.
Prompt access to your case gives our auto accident law firm time to investigate the accident, determine the cause, identify the negligent party, and file a claim within North Carolina’s three-year statute of limitations, as per GS 1-52(16). Your Greenville auto accident lawyers will work to find convincing evidence to support your claim of negligence and your settlement demand.
Some auto accident law firms want to avoid a trial fight by settling your claim through negotiations. Settling out of court typically shortens the amount of time you have to wait to see compensation, but you also might settle for less than you deserve. Our team will fight for a swift, fair settlement, but we are also ready to put our time, effort, and skill into a court battle if that is what it takes to get justice.
We Are On Your Side
When you are dealing with insurance complications and the other fallout from a car accident, you need someone on your side. Ricci Law Firm has a whole team of car accident attorneys ready to take your side. There are many Greenville car accident law firms you could choose to represent you. While we cannot attest to their successes or failures, our results show we are up to whatever challenges your case brings.
We offer you 60 years of combined experience and do not take any payments until we have delivered you a settlement or trial award. Every case gets the full power of our legal knowledge, skill, experience, and resources, and every client is treated with respect and compassion. Get in touch today by phone or electronic message. We look forward to helping you through this difficult time and into a peaceful, hopeful future.