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A car accident is a stressful event. Your immediate concerns are safety and the condition of your vehicle. After the initial shock, practical questions arise. One of the most common questions is about the financial aftermath. You were not at fault. Someone else hit your car. You expect their insurance to cover everything. But a worry lingers about your own policy. You wonder about your future insurance premiums. The question is a simple one, yet the answer is not always straightforward.
This post will fully explore this critical question. We will examine the factors that determine if your insurance rates will increase after a not-at-fault accident. These factors include the principle of fault, the laws in your specific state, the other driver’s insurance status, and your own insurance company’s internal rules. Understanding these elements will give you a clear picture of what to expect. It will also provide you with the knowledge to protect your financial interests after an accident that you did not cause. This information helps you understand the insurance process. It prepares you for conversations with your insurance agent and claims adjusters.
Understanding Fault and Its Impact on Your Insurance
The concept of “fault” is the foundation of most car insurance claims in the United States. The person deemed at-fault for an accident is the one whose insurance is primarily responsible for the damages. This seems simple. If another driver hits you, they are at fault. Their insurance should pay. Your insurance company should not penalize you. In many cases, this is exactly what happens.
How is Fault Determined?
Fault is not just an opinion. It is a conclusion reached by insurance adjusters based on evidence. Several key pieces of information help determine who caused an accident.
A police report is often the most important document. When police respond to an accident scene, they create a report. This report includes a description of the accident, diagrams, statements from drivers and witnesses, and sometimes the officer’s opinion on who violated a traffic law. A citation issued to the other driver for a moving violation is strong evidence of their fault.
Witness statements also play a significant role. An independent third party who saw the accident can provide an unbiased account. Their testimony can confirm your version of events and contradict the other driver if they try to avoid blame.
The nature of the collision itself can indicate fault. For example, in a rear-end collision, the driver of the car that hit the one in front is almost always considered at fault. This is because drivers are required to maintain a safe following distance. Similarly, a driver making a left turn who collides with a car going straight generally is at fault.
Finally, evidence like dashcam footage or photos from the scene can be definitive. This visual proof can clearly show what happened, leaving little room for dispute. Insurance adjusters from both companies will review all this evidence to make a final determination of fault. The question, will your insurance go up if someone hits you, often depends entirely on this determination being 100% in your favor. If you are found completely free of blame, your chances of avoiding a rate increase are very high.
Why a Clear Fault Determination Matters
A clear and undisputed determination that the other driver was 100% at fault is your best protection against a rate hike. When fault is clear, the process is supposed to work as follows: You file a claim against the other driver’s liability insurance. Their policy covers the repairs to your car and any medical expenses you have, up to their policy limits. This is called a third-party claim. Since your insurance company does not have to pay for the damages, they have no financial loss to recover. With no loss, they have no reason to increase your premiums. This is the ideal scenario for any driver who is hit by someone else.
However, the process is not always this clean. Disputes over fault can arise. The other driver might tell a different story. Evidence might be unclear. This is where complications begin and the answer to your question can change.
How Your State’s Laws Change the Answer
The United States does not have a single, national system of car insurance. Instead, each state creates its own laws. These laws have a massive impact on how car accident claims are handled. The rules in your state are a critical variable in determining whether your insurance premium will rise after a not-at-fault accident. States generally fall into two categories: at-fault states and no-fault states.
At-Fault States (Tort States)
The majority of states are at-fault states, also known as tort states. In these states, the driver who caused the accident is responsible for paying for all the damages. This includes property damage to vehicles and medical bills for injuries. If someone hits you in an at-fault state and they are determined to be 100% at fault, their Bodily Injury Liability and Property Damage Liability coverage pays for your losses.
In this system, you have a few options. You can file a claim directly with the at-fault driver’s insurance company. Or, you can have your own insurance company handle the claim. If you use your own insurance, you will likely need to have Collision coverage on your policy. You will pay your deductible to get your car repaired quickly. Then, your insurance company will seek reimbursement from the other driver’s insurance company. This process is called subrogation.
If your insurer successfully recovers the full amount they paid, including your deductible, they have suffered no loss. In a successful subrogation, you get your deductible back, and your insurer is made whole. Because your company did not ultimately pay out money, a rate increase is very unlikely. The system is designed to place the financial burden on the responsible party.
No-Fault States
A minority of states use a no-fault system. These states include Florida, Michigan, New York, and others. The “no-fault” concept can be confusing. It does not mean that nobody is ever at fault for an accident. Fault is still determined to handle property damage. The primary difference is how medical expenses for injuries are handled.
In a no-fault state, you turn to your own insurance policy first to pay for your medical bills, regardless of who caused the accident. This is done through a coverage called Personal Injury Protection, or PIP. You must use your own PIP coverage for your injuries up to a certain limit set by state law. The purpose of this system is to ensure that injured people get medical payments quickly without having to go through a lengthy process of proving fault.
Because you are making a claim on your own policy for your PIP benefits, it can affect your rates. Even though you did not cause the accident, you are using your insurance. Some states have laws that prohibit insurers from raising rates for a not-at-fault claim. Other states do not have such protections. Therefore, in a no-fault state, the answer to the question will your insurance go up if someone hits you can be more complicated, especially concerning injury claims. For vehicle damage, the claim is still typically made against the at-fault driver’s policy.
The Grey Area: Comparative and Contributory Negligence
What happens if you are found partially at fault? States have rules for these situations called comparative negligence or contributory negligence.
- Contributory Negligence: This is a very strict rule used in only a few states. If you are found even 1% at fault for the accident, you cannot collect any money from the other driver.
- Pure Comparative Negligence: This rule allows you to collect damages even if you were mostly at fault. Your compensation is simply reduced by your degree of fault. If you have $10,000 in damages but were 30% at fault, you can collect $7,000.
- Modified Comparative Negligence: This is the most common system. You can collect damages as long as your fault is not more than a certain percentage, typically 50% or 51%. If your fault exceeds this threshold, you cannot collect anything.
If you are assigned any percentage of fault, your insurance company might raise your rates. An insurer sees any at-fault accident, even a partially at-fault one, as an indicator of increased risk. This shared fault can complicate a seemingly straightforward not-at-fault accident.
Scenarios Where Your Premium Can Still Rise
Even if the other driver was 100% at fault and you live in an at-fault state, there are specific situations where your insurance premium could still increase. These scenarios often surprise drivers who believe they are completely protected.
The Other Driver is Uninsured or Underinsured
This is a common and frustrating problem. You follow the rules and carry proper insurance, but the driver who hits you does not. If the at-fault driver has no insurance, there is no policy to file a claim against. This is where your own Uninsured Motorist (UM) coverage becomes essential. UM coverage is designed for this exact situation. It pays for your medical bills (Uninsured Motorist Bodily Injury) and, in some states, for your vehicle repairs (Uninsured Motorist Property Damage).
Similarly, if the at-fault driver has insurance but their policy limits are too low to cover all your damages, it is called being underinsured. For example, they might have a $10,000 property damage limit, but your car has $15,000 in damage. In this case, your Underinsured Motorist (UIM) coverage can cover the difference.
When you use your UM or UIM coverage, you are making a claim on your own policy. This is a not-at-fault claim. Many states have specific laws that forbid insurance companies from raising your rates for using UM/UIM coverage. However, not all states have this protection. In states without these laws, an insurer could potentially raise your rates because they had to pay a claim. The apathetic stance of a state legislator can be the main determinant when asking will your insurance go up if someone hits you after being hit by an uninsured driver. Checking your state’s specific regulations on UM/UIM claims is very important.
Using Your Own Collision Coverage
Sometimes, even when the other driver is insured and at fault, their insurance company can be slow, difficult, or may dispute the claim. While you wait for them to accept liability and pay, your car remains damaged. To speed up the repair process, you can choose to use your own Collision coverage. You pay your deductible, and your insurer pays for the repairs.
As mentioned before, your insurer will then try to get that money back from the at-fault driver’s company through subrogation. If they are 100% successful, they recover the full payment and your deductible. The claim is effectively closed with no cost to your insurer. But what if subrogation fails? The other insurer might fight and win the dispute, or the other driver might have given false insurance information. If your company cannot get its money back, a claim remains on your record. Your insurer paid for the repairs. This paid claim could lead to a rate increase at your next renewal.
Loss of Discounts
One of the most subtle ways your insurance premium can go up is through the loss of discounts. Many insurers offer significant discounts for being a “good driver” or remaining “claims-free” for a certain number of years. A “claims-free” discount is just what it sounds like: a reward for not filing any claims.
When someone hits you and you file any type of claim, even a not-at-fault one, you are no longer technically “claims-free.” Depending on your insurance company’s specific rules, they may remove this discount at your next policy renewal. The loss of a 10% or 20% discount is a real increase in what you pay, even if your base rate did not technically go up. This is a frustrating reality for many safe drivers. The loss of a discount is a subtle way the answer to will your insurance go up if someone hits you can be yes, without your base premium changing at all.
General Risk Assessment
Insurance companies operate on statistics. They analyze vast amounts of data to predict which drivers are most likely to cost them money in the future. Some studies have shown that drivers involved in any type of accident, even not-at-fault ones, are statistically more likely to be involved in a future accident. Some insurers may view a not-at-fault accident as a sign that you might drive in high-risk areas or at high-risk times.
While this may seem unfair, it can be part of their calculation. A single not-at-fault accident is unlikely to cause a rate hike on this basis alone. However, if you have multiple not-at-fault accidents in a short period, your insurer might see you as a higher-risk client and increase your rates accordingly.
Actions to Take After a Not-At-Fault Accident
Knowing the factors that influence your insurance rates is one thing. Taking concrete steps to protect yourself after an accident is another. Your actions immediately following an accident can have a significant impact on the outcome of your claim and your future premiums.
Gather Extensive Evidence at the Scene
The single most important thing you can do is document everything. Solid evidence is your best tool for proving the other driver was at fault.
- Take Photos and Videos: Use your smartphone to take wide shots of the accident scene, photos of all vehicles involved from multiple angles, pictures of the damage, and photos of license plates and insurance cards. Video can capture traffic flow and context.
- Call the Police: Always request a police report, even for a minor accident. A police report is an official record that carries weight with insurance companies.
- Get Witness Information: If anyone saw the accident, ask for their name and phone number. Independent witnesses are incredibly valuable.
- Do Not Admit Fault: Be polite and exchange information, but do not apologize or say the accident was your fault. Stick to the facts of what happened.
Report the Accident Promptly and Accurately
Contact both your insurance company and the other driver’s insurance company as soon as possible. When you report the accident, provide a clear, factual account of what occurred. Do not guess or speculate. Give your insurer the evidence you collected. A prompt report shows you are being responsible and allows the claims process to start quickly. Proper documentation can be your best defense when you are concerned about will your insurance go up if someone hits you.
Understand Your Policy Before You Need It
The worst time to learn what your insurance covers is after an accident. Review your policy declaration page periodically. Make sure you understand your coverages. Do you have Collision coverage? Do you have Uninsured and Underinsured Motorist coverage? What are your deductibles? Knowing this information helps you make informed decisions during the claims process. If you find your coverage is lacking, you can adjust it before an incident occurs.
Follow the Claims Process Carefully
When you file your claim, try to file it with the at-fault driver’s insurance company first. This is a third-party claim. It reinforces that you expect them to pay for everything. Keep a detailed log of every conversation you have with adjusters from both companies. Note the date, time, name of the person you spoke with, and what was discussed. This creates a paper trail that can be useful if disputes arise. Be persistent and follow up regularly on the status of your claim.
Conclusion
So, will your insurance go up if someone hits you? The most accurate answer is: it should not, but it sometimes can. In an ideal world, where the other driver is 100% at fault and fully insured, your rates will almost certainly stay the same. Their liability insurance will cover your costs, and your insurer will not have a reason to view you as a higher risk.
However, reality can introduce complications. The final outcome depends on a combination of key factors. The determination of fault must be clear and undisputed. The insurance laws in your state—whether it is an at-fault or no-fault system—dictate the initial claims process. The insurance status of the at-fault driver is critical; if they are uninsured or underinsured, you may have to rely on your own policy. Finally, the specific internal rules of your insurance provider, especially regarding claims-free discounts and risk assessment, can play a decisive role.
By understanding these variables, you are better equipped to handle the aftermath of an accident. By collecting strong evidence, reporting the incident promptly, and knowing your policy, you take control of the situation. You maximize the chances of a fair outcome where the responsible party pays, and your good driving record remains unpenalized. Ultimately, knowledge of the process empowers you to protect your finances and gives you peace of mind during a challenging time.