Car insurance increases by 40%-50% on average after an accident. However, exact insurance rate increases can vary depending on factors such as the state, the company the policy is with, driver history, driver experience, and who was at fault for the accident.
So, how much does insurance increase after a car accident in Detroit, Michigan? Let’s take a look.
Policy rates can vary from one insurance company to the next, and they can also vary by state. When you first sign a policy with a new provider, they will look at various factors to determine your rate, such as how long you’ve been driving, what your driving history looks like, and even what kind of vehicle you drive.
Essentially, what insurance companies are doing is assessing your risk. If you are determined to be high-risk, they will require you to pay higher premiums. This same process for determining initial rates is also used to determine whether your car insurance will increase after an accident.
Being involved in an accident means the insurance company will now assess you as a higher risk, which means they will likely increase your rate. However, most insurance companies will only increase your rate once you renew your policy.
The average car insurance increase in Michigan after an accident is 48%. However, keep in mind that this is typically the increase for someone who is at fault for an accident.
When you are the one responsible for an accident, you are obviously determined to be a higher risk, which is why you will likely suffer a high rate increase. And if the accident resulted in significant damage and injuries, this can also mean you will get a much higher car insurance increase.
In fact, statistics have shown that rate increases in Michigan are some of the highest when a driver is the one responsible for causing an accident, with rates being doubled compared to what they originally were.
On average, the dollar amount insurance rate increase for drivers that cause an accident in Michigan is $921.
If you are not at fault for the accident, you may or may not experience an insurance rate increase. Again, it can depend on the company your policy is with, your driving history, etc.
On average, drivers who are not at fault for an accident will experience a 4% car insurance increase. But this can also depend on the state in which you live.
For example, if you live in an at-fault state, your insurance will likely not go up because the insurance of the driver who is at fault will be the one to pay for the damages. Michigan, however, is a no-fault state.
Because Michigan requires drivers to carry no-fault insurance, this means that your insurance company will still have to pay for some damages, no matter who was at fault. And because they must pay no matter who is at fault, you will also likely have to suffer a rate increase even though you were not at fault.
The percentage your insurance rate increases, however, will probably not be nearly as much as it would if you were at fault. Again, the average rate increase for a no-fault accident is 4%, or $67 a year.
While insurance rate increases after an accident are frustrating, especially if the accident wasn’t your fault, there are things you can do to try to lower your rate.
- Shop around for different insurance: Remember, your rate will only increase once you renew your policy with your current insurance provider. This means that if you think they are going to increase your premiums, you could decide to shop around for a policy with a different insurance company. There is no guarantee that another provider will offer you a lower rate, but it is possible.
- Alter your policy: When it comes to car insurance, it’s always best to pay for as much as you can afford. However, most states only require drivers to carry the minimum coverage. So if your premiums go up after an accident, you could review your policy and potentially pay for less coverage on certain things to lower your rate.
- Enroll in a safe driver program: Many companies today offer some sort of safe driver program that can allow you to track your driving for a certain period of time. After that period is over, if the tracker shows that you are a safe driver, you will get a rate discount.
- Take a defensive driving course: Some insurance companies will also offer discounts and savings to drivers who take action to improve their driving by signing up for a defensive driving course. And not only can this potentially lower your insurance rate, but if you received points on your driving record for the accident, taking a class in traffic school may help you remove those points from your record.
If you have been involved in an accident and need help filing your claim and dealing with insurance, our legal team can assist you. We understand how frustrating it is to deal with the results of an accident and car insurance increases and are committed to ensuring our clients receive the best possible outcome.
At The Lee Steinberg Law Firm, we have years of experience handling Detroit car accident claims. We can help you navigate your claim, ensure the right party is held liable, and get you the full and fair settlement you deserve.
Call our Michigan car accident lawyers at 1-800-LEE-FREE (1-800-533-3733). You’ll pay nothing until we settle your case.