Being in a car accident is stressful enough when you’re at fault. One of the first things many Georgia drivers worry about is how this will affect their car insurance rates. Georgia’s laws and insurance regulations play a big role in how much your insurance rates increase.
An experienced Georgia car accident attorney can help you navigate these increases after your car accident. This post will go over the factors that go into insurance rates after an at-fault accident in Georgia, Georgia specific regulations and tips on how to manage and possibly mitigate when insurance rates increase.
Length of Accident Affecting Insurance Rates
An at-fault accident can stay on your car insurance rates for a long time. Typically it’s about 3-5 years. However this time frame can vary depending on state regulations and insurance company policies.
State Regulations
Some states have laws that require insurance companies to consider accidents for a shorter period, others allow them to consider for a longer period. Be aware of your state’s laws as they can directly impact how long you’ll have to pay higher insurance rates after an accident.
Insurance Company Policies
Most insurance companies will put the accident on your insurance record. This record will affect your insurance rates for as long as it’s active. As time goes by with no other incidents, the impact on your rates may decrease and eventually go back to pre-accident levels.
Multiple Accidents
Also note that multiple accidents in a short period can compound the issue. Each accident will extend the duration of the rate increase and make it harder to find affordable car insurance. Insurance companies view drivers with multiple incidents as higher risk and will increase premiums for a longer period.
Average Insurance Rates Increase
Depending on your insurance company and situation, your insurance rate can increase anywhere from 28% to 70%. Full coverage policies are hit the hardest, often with the biggest rate increase.
Insurance companies consider several factors to determine the rate increase. These include the severity of the accident and the cost of any property damage or injuries. A more severe accident will generally result in a bigger rate increase.
Driving History
Your driving history also matters. If you have previous accidents or traffic tickets you’ll get a bigger rate increase than someone with a clean driving record. If this is your first accident and you have a clean driving record the impact will be less.
Insurance Company Variance
Different insurance companies handle rate increases differently. Some like State Farm and Travelers may offer lower increases than others. This is why it’s important to shop around and get quotes from multiple companies. You can find cheaper car insurance even after an at-fault accident.
Rate Increase Factors
Several factors will affect how much your car insurance rates increase after an at-fault accident.
Severity of the Accident
The severity of the accident matters. If the accident caused significant property damage or serious injuries, it will make your insurance rates increase. Insurance companies will assess the extent of the damage and medical costs to determine the rate increase.
Driving History
Your driving history also impacts the rate hike. If you have a clean driving record with no previous accidents or traffic tickets the increase will be on the lower end. If your record shows multiple accidents or traffic tickets you’re considered higher risk and the rate increase will be bigger.
Previous Accidents
Another factor is if you’ve been in previous accidents. Multiple at-fault accidents can compound the rate increases and make your insurance rates increase big time. Insurers view multiple accidents as a pattern of behavior and will charge you more.
Insurance Company Policies
Your insurance company’s policies also matter. Different companies have different guidelines on how they handle rate increases after an at-fault accident. Some companies have accident forgiveness programs that will prevent your rates from going up after your first accident. It’s important to know your insurance company’s policies so you know what to expect.
State Laws
Finally state laws can affect how insurance rates increase. Some states have stricter laws that will result in bigger rate hikes and others are more lenient. Be aware of your state’s laws and how they impact your rates.
Accident Forgiveness Programs
Many insurance companies offer accident forgiveness programs. These programs will prevent your rates from going up for your first at-fault accident. The details of these programs vary among companies.
Eligibility
For example, some companies may automatically grant accident forgiveness if you’ve been a customer for a certain number of years with a clean driving record. Others may require you to purchase accident forgiveness as an add-on to your existing car insurance policy. Make sure you read the fine print before you assume you’re covered.
State Laws
Also the availability of accident forgiveness can vary by state. Not all states allow insurance companies to offer these programs. So check if accident forgiveness is an option in your state.
Financial Benefits
Accident forgiveness is a financial lifesaver. It will prevent your rates from going up after your first mistake. But remember this benefit only applies to one eligible accident. Any subsequent at-fault accidents will likely increase your rates.
Driving History
Also note that while accident forgiveness will prevent a rate increase it won’t erase the accident from your driving history. The incident will still be recorded which can impact your insurance options and rates in the future.
How to Get Accident Forgiveness
To get accident forgiveness talk to your insurance company. They’ll explain their program and help you determine if you qualify. Comparing companies can also help you find the best accident forgiveness and save on your car insurance.
Georgia Regulations
State laws play a big role in how your car insurance rates increase after an at-fault accident. In Georgia, rates will vary from other states due to state laws and insurance company policies.
Georgia Laws
In Georgia, insurance companies must follow state guidelines when adjusting rates after an accident. These laws can limit or add to the rate increase. For example, Georgia allows insurance companies to consider your driving history and the severity of the accident which can result in different rate adjustments.
Rate Increase Factors
Georgia insurance companies consider several factors to determine the rate increase after an at-fault accident. These factors are the severity of the accident, cost of property damage and injuries and your driving history. Multiple accidents or traffic violations on your record will result in bigger rate increases.
Accident Surcharge in Georgia
Georgia has accident surcharges that will directly affect how much you’ll pay after an at-fault accident. These surcharges are extra fees added to your premium that reflects the increased risk on your driving record.
Compare Companies
To navigate the rate increase variations it’s good to compare quotes from different companies in Georgia. Some companies may offer better terms or accident forgiveness programs that will reduce how your car insurance rates increase. Compare options to find the best deal.
Reduce the Rate Increase
Reducing the impact of an at-fault accident on how your car insurance rates increase involves the following:
- Compare Rates: Get quotes from different auto insurance companies. Rates vary from company to company and switching companies may save you money.
- Usage-Based Insurance: Some companies offer usage-based insurance programs. These programs monitor your driving habits and can give you lower rates if you’re a safe driver.
- Accident Forgiveness: Look for companies that offer accident forgiveness. This benefit will prevent your rate from going up after your first at-fault accident.
- Defensive Driving Course: Take a defensive driving course. Completing a course will give you a discount on your premium.
- Good Credit Report: A good credit report will help your rates. Check your credit score and address any issues ASAP.
- Clean Driving Record: Keep your record clean. Avoid traffic violations and accidents to become a lower risk driver and get lower rates.
Contact an Experienced Georgia Car Accident Attorney Today!
If you’ve been involved in an at-fault accident in Georgia, don’t let uncertainty about how insurance rates increase. Take control of your financial future by understanding the factors that influence your premium increases and exploring your options. If you need more help, our team at 1Georgia Injury Lawyers can be right by your side.
Contact us today at 678-635-9939 for a free consultation today!