When a Not-At-Fault Claim Can Raise Your Insurance Costs
If you're in an accident and it is your fault, your insurance rate will increase. But even if the accident was not your fault, your insurance rate may still increase. Your insurance premium could increase depending on the situation of an accident, your history of making claims, and the type of insurance coverage you have.
Say you’re driving home from work one day, paying close attention to the road ahead and the drivers around you when suddenly another driver runs a stop sign and rams into the side of your vehicle.
Thankfully, no one is hurt, but your vehicle certainly is. You have good car insurance and know that you’re not at fault, so you carefully document the damage, exchange information with the other driver, and file a police report. Sounds good.
Then, you tell a friend about the accident and that friend cautions you to think twice about filing a claim with your car insurance because the company could jack up your insurance rate.
Yes, it is true, even though the other driver's insurance should cover the costs of repairing your vehicle. Some insurers will not increase your rate in this scenario. If yours does, it may be time to shop around for a new insurer.
The chart below shows the results of a study by the Consumer Federation of America (CFA) determining which auto insurance companies punish their customers for not-at-fault accidents.
The Good News About Not-At-Fault Claims
In almost all U.S. states, not-at-fault claims are filed against the at-fault vehicle owner's insurance policy (MI residents check here). If you are able to file against the at-fault party, you are less likely to see an increase in your insurance bill.
Even if you do need to file against your own policy, some insurance carriers still will not raise your rate for a not-at-fault claim.
The Bad News About Not-At-Fault Claims
Let’s say that in the above scenario, the other driver fled the scene instead of calmly exchanging information with you. Unfortunately, some insurance carriers will raise your rates if you file a not-at-fault claim.
At least a not-at-fault claim might come with a smaller surcharge than an at-fault claim.
You might be amazed at the number of factors that can affect your car insurance rate. Filing an at-fault claim is all but a surefire way to raise your rates, though you might be able to avoid that through your insurance company's accident forgiveness program if they offer one. But filing a not-at-fault claim can in some scenarios be used to raise your rate as well. This is one of them.
What You Can Do About It
If you file a not-at-fault claim and your insurance carrier raises your rate, it would probably be in your best interest to start shopping for a new carrier. New charges are applied on your insurance renewal date, so you should have some time between filing and actually paying for the surcharge.
Asking a prospective insurance company whether they surcharge for a not-at-fault accident is a great question when you’re calling around for quotes. It might even make you choose a slightly higher quote over a cheaper one from a company that could slap a surcharge on you down the road.
Think about it. Otherwise, if you have an accident and it’s not your fault, your first question will still be “how much is my insurance going to go up?”
Progressive Casualty Insurance Company. "Do Accidents Affect Insurance Rates?" Accessed March 31, 2020.
Esurance Insurance Company. "Myth: Rates Automatically Rise After a Claim." Accessed March 31, 2020.
Allstate Insurance Company. "What Is No-Fault Insurance (Aka Personal Injury Protection or PIP Insurance)?" Accessed March 31, 2020.
Nationwide Mutual Insurance Company. "What States Have No-Fault Insurance?" Accessed March 31, 2020.
GEICO. "Learn More About Accident Forgiveness." Accessed March 31, 2020.
Esurance Insurance Company. "Renewing Your Car Insurance Policy." Accessed March 31, 2020.