How Does An Accident Affect Insurance Rates in Memphis, Tennessee

If you have ever been in a car accident, you’ve likely asked yourself: how much does insurance increase after an accident? Insurance companies make a big deal in their marketing about how they don’t raise their rates. But make no mistake — insurance companies are trying to make profits. If they think you are riskier to insure, they will raise your rates.

According to an analysis of auto insurance rates from ValuePenguin, if you cause a car accident in Tennessee, you can expect your rates to increase by an average of 41 percent, which is slightly lower than the national average of 50 percent. This number is just an average, though, and your actual rate increase depends on several factors relating to the accident and your driving history.

Factors that Will Affect Your Rate Increase

Below are just a few of the factors that will affect any rate increase for a car accident that is your fault.

• Traffic Violation – Whether or not you were violating a traffic law when the accident occurred will affect any rate increase. If you were breaking a law, the insurance company may see you at a higher risk and charge accordingly.
• Claim History – Drivers with a history of making claims will usually see a higher rate increase. If you make multiple claims in the past, the insurance company will judge you more likely to make one in the future.
• Accident Forgiveness – Some insurance companies have an accident forgiveness program where they won’t raise your rates after an at-fault accident. However, you need to meet eligibility criteria to avoid a rate hike, such as having a previously clean driving record or a period of being accident-free.

Will an Accident That Was Not My Fault Cause My Rates to Go Up?

Generally, your accident rates will not go up if the accident was not your fault. The reason why is that Tennessee is a fault-based state, so the at-fault driver’s insurance company has to pay for your injuries, not your insurance company.

Ultimately, though, this decision comes down to your specific insurer. Some states, like Oklahoma and California, prohibit auto insurers from raising rates for an accident that is not your fault, but Tennessee has no such regulations. Certain companies may raise your rates for a no-fault accident, especially if you have filed multiple claims in the past few years. Additionally, some policies have a claim-free discount that may expire and raise your rates if you report an accident.

When Will My Insurance Rates Go Up?

Your insurance rates won’t go up immediately after an accident. Typically, they will rise when your policy renews for the next term. Your auto insurance company should send you your new policy details and rates about a month before the policy renews. As such, if you get into an accident and want to change your auto policy, you should wait until your policy is close to expiring before switching.

Do Non-Collisions Increase My Insurance Rates?

Certain types of non-collision traffic infractions can also increase your rates. For example, a speeding ticket will most likely affect your rates as insurers will see you as a high-risk driver. Other non-collision infractions, such as parking tickets or driving with a broken headlight, shouldn’t affect your rates.

How Long Will an Accident Affect My Insurance Rates in Memphis?

In most cases, an accident will go on your insurance record for about three to five years. The exact length of time depends on your specific insurer. During this period, an accident will affect your current insurance rates and potential rates if you want to switch policies. If you are unsure how long an accident will be on your record, contact your insurance provider and inquire about their policy.

What Happens If I Don’t Report an Accident to My Insurance Company?

You might be tempted not to report a minor accident due to the potential rate increase. You might think paying out of pocket is better than the potential rate hike. However, you should not conceal an accident from your auto insurance company. If you do, your insurer could deny future claims, and you could potentially lose your coverage entirely.

If the other driver files a claim against you and your insurance company learns you hid the accident, they may deny you coverage, and you could be on the hook for all of their medical bills. In serious cases, you could even get in legal trouble.

Car Accident Attorneys in Memphis, Tennessee

Car insurance claims are complicated, and going through the process is much easier when you work with an attorney who has experience in this area. A car accident lawyer from Gatti, Keltner, Bienvenu & Montesi, PLC can help you with all the legal aspects surrounding your recent car accident. We can take the lead when pursuing those responsible for your injuries to recover your financial compensation. Contact us online or call (901) 526-2126 today for a free, no-obligation case consultation with a car accident attorney in Memphis, Tennessee.