According to the Colorado Department of Transportation (CDOT), over 115,000 reported motor vehicle crashes occurred within the state of Colorado in 2017. For many drivers, these accidents increased auto insurance rates. Coverage conducted a study in 2020 that found the average insurance premium for a driver with full coverage increased by a whopping 34 percent after a collision. In Colorado, the average premium increase following an at-fault accident increased from $1,720 to $2,394. However, not all accidents will lead to a rise in insurance costs. In some cases, being involved in a car crash will not affect insurance premiums.
How Can an Accident not Affect Insurance?
In certain circumstances, a car accident may not impact insurance costs if the opposing driver bears a majority of fault for the accident. When this occurs, a not-at-fault driver may file a claim with the at-fault driver’s insurance company to receive compensation for damages caused in the crash.
“There are several indicators that individuals could use to determine fault after a car accident occurs,” said lawyer Christopher Nicolaysen of The Springs Law Group. “This includes examining statements from a driver, police reports, or acceptance of fault from insurance companies. In some cases, fault can be easily determined if one driver was cited with a traffic violation, such as a DUI or reckless driving.”
Additionally, some types of single-car accidents may not affect an insurance rate, such as cases where a deer or other wildlife caused an accident. However, whether or not this type of accident may affect coverage costs could vary between insurance companies.
Insurance Rate Increases
There are several situations in which a car accident case results in increased insurance costs. This includes cases where you were found to hold a majority of fault for the cause of an accident. Additionally, car insurance rates could rise even if you were found not at-fault for the cause of the accident. A 2017 study conducted by the Consumer Federation of America (CFA) found that insurance rates could increase by as much as 10 percent following a not-at-fault accident under some insurance policies.
Accident Forgiveness and Car Insurance Coverage Costs
Drivers involved in a car accident may also be protected from an insurance premium increase if they have accident forgiveness as part of their insurance policy. While policy details may vary between companies, accident forgiveness generally waives surcharges and insurance rate increases after a driver becomes involved in an at-fault car accident. Depending on the insurance carrier, accident forgiveness could be purchased or already included in an insurance policy. Currently, several major insurance companies carry accident forgiveness policies, including Geico, Allstate, and Nationwide.
Safe Driving Best Practices
Ultimately, one of the most effective ways to prevent an insurance premium increase is avoiding accidents altogether. According to safe driving experts, focusing on driving and reducing distractions could proactively reduce the likelihood of an accident occurring. Removing potentially distracting objects, such as cellphones, tablets, or other devices, could help drivers maintain focus on the road. Additionally, keeping a safe distance from other vehicles could allow a buffer if a driver needs to make a sudden stop.
