While you might think your car insurance may jump in premium costs after an auto crash, it may not happen if you can prove the other party was at fault. To prove liability, choose an experienced car accident attorney - someone who can prove the other party caused the crash. This, in turn, will save you lots of money on your future insurance costs.
Always Work With a Car Accident Attorney
Talk to a car accident attorney if you've suffered an injury and you feel the other party is to blame. They can also pursue maximum compensation in jurisdictions that follow a no-fault insurance system and doctrine.
At-Fault and No-Fault - A Seesaw Comparison
Most states, like Illinois, are tort (at-fault) states. However, some states operate with a no-fault system. In tort states, the driver at fault for the accident must pay for the other party's damages and medical costs.
In no-fault states, each party's insurance company pays for their medical costs and losses, regardless of who caused the accident. This type of legal relief is known as a limited tort system. As a result, you're also more likely to see an increase in your insurance coverage - even if you're not at fault for the accident.
A recent survey showed that the average rate increase in no-fault accident claims was about 10 percent annually.
Moreover, no-fault states require more coverage, as drivers in these states must carry personal injury protection (PIP). PIP covers medical expenses, pain and suffering, and lost income—but only to the coverage limits.
If you live in a no-fault state, you're limited in your ability to sue, as you can only file a lawsuit if your medical expenses go above a certain threshold. If you live in an at-fault state, you can ask for maximum compensation for damages. These damages may include medical costs, pain and suffering, income loss, and loss of quality of life.
How an Insurance Company Calculates Rate Increases
An insurance company considers several factors when settling and increasing rates. These factors include the insurer's driving history, credit score, and the probability that they'll be involved in a future accident. The rising costs of auto repairs also play a factor.
How a Car Accident Lawyer Can Save Your Premiums
When you're in a car accident, typically, one of the biggest long-term financial worries is the rate increase. Many drivers assume their rates will go up after an accident, but that's not always the case – especially when you have a good lawyer standing in the wings.
Understanding how insurance companies calculate rate increases and how an attorney can stop them is key to protecting your bottom line after an accident.
Post Accident Insurance Rates
Insurance companies increase rates after an accident because statistics show that drivers who have been in one accident are more likely to get into another.
However, this only applies to at-fault accidents. When the other driver is clearly at fault, your rates should not go up. Unfortunately, insurance companies don't always make this distinction without proper documentation and legal intervention.
An at-fault accident can increase your rates by 30 percent to 50 percent, depending on your insurance company, state laws, and your driving history. This can last three to five years and cost you thousands of dollars over time. But, with proper legal representation, you can often avoid these increases by proving the other driver’s guilt.
How a Competent Car Accident Lawyer Can Help
Legal representation can stop insurance rate increases after an accident through:
The Establishment of Clear Liability
Accident attorneys gather and preserve evidence that proves the other driver was at fault. This includes getting witness statements, surveillance footage, accident reconstruction reports, and documenting the road conditions. When liability is clear, the insurance company has no reason to raise your rates based on the accident.
The Collection of Professional Documentation
An attorney will file and communicate all accident-related documents to the insurance companies. This professional handling of your case creates a paper trail that supports your position as bearing no fault. Insurance companies are less likely to try to raise your rates when faced with a well-documented case.
Negotiating With Insurance Companies
Insurance attorneys know insurance companies' language and tactics. They can negotiate with them to stop unfair rate increases and challenge them when they try to make you the at-fault party. They have the experience and leverage required that individual policyholders don't possess.
Receiving Compensation without a Rate Increase
When an attorney handles your accident claim, they focus on getting you compensation for your damages while protecting your long-term financial interests, including your rates. The process involves:
An Initial Investigation
Your attorney will gather evidence to prove the other driver was at fault. This fast action ensures that critical evidence is preserved and documented to build and support your case.
Insurance Company Communications
All communications with insurance companies go through your attorney. During settlement negotiations, your attorney will ensure the agreement states the other party was at fault to avoid rate increases.
Fast Action
Your attorney acts fast so insurance companies can't make assumptions about fault based on incomplete information.
Expert Witness
When necessary, an attorney can bring in expert witnesses to prove liability so insurance companies can't justify raising rates.
Policy Compliance
An attorney will ensure insurance companies follow their policies and state laws regarding rate increases after no-fault accidents.
Contact a Car Accident Attorney Now
By contacting a car accident lawyer, you can avoid a spike in your insurance premiums. Knowing where you stand and what you can do legally will support you after a car crash due to another party's negligence.
When you work with a car accident attorney, they will provide you with expert legal advice, and they will also guide you through the entire process with empathy and understanding. Call a personal injury attorney now for a free case review and consultation.
Adam B. Lawler
Attorney at Law / Partner
Adam Lawler is the founder of Lawler Brown. Adam is a 2004 graduate of Saint Louis University School of Law. Adam worked for a local firm until founding the Lawler Brown in 2009. Adam’s practice areas focus in Personal Injury, Business, Real Estate, Probate/Trust/Estate Administration and general litigation.
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