Will a Car Accident Drive My Auto Insurance Costs Up if It Wasn't My Fault?

Getting into a car accident that you caused doesn't automatically make you a reckless driver. We're all human, and sometimes, a split second of poor judgment could result in a collision that causes damage and, unfortunately, injuries.

Now as you might imagine, if you cause a car accident, it's likely to lead to an uptick in your auto insurance rates. But what if you're involved in an accident that you very clearly didn't cause?

Imagine you're stopped at a red light and another driver fails to hit the brake and plows into you. In that case, there's really no question about which driver is to blame.

But unfair as it may seem, when you're in an accident you didn't cause and are forced to file an auto insurance claim, you might still see your premium rates rise following that incident. So it's important to brace for that possibility -- but also, to shop for auto insurance that may lessen the blow in situations like those.

When you're simply a victim

Some car accidents aren't cut and dry when it comes to assigning blame. But in certain situations, it can be abundantly clear that one driver was at fault and the other was simply a victim. But even in that situation, you could end up paying more for auto insurance as the victim.

Now the good news is that you shouldn't see the same sort of rate increase as you would for an accident you did cause. But still, any increase in your auto insurance costs can be brutal, especially at a time when other expenses of yours may be elevated due to lingering inflation.

In fact, Forbes Advisor puts the average cost of full-coverage auto insurance at $2,150 per year. There are different factors that go into calculating car insurance rates, like location, age, driving history, and vehicle model and condition at the time of purchase. But if you're paying $2,150 at present for insurance and your costs increase to $2,200 following an accident you didn't cause, that's a pretty harsh blow.

Can you avoid an auto insurance increase?

You can't always avoid being in an accident. But one thing you may be able to do is sign up with an auto insurer that offers an accident forgiveness program. Under these programs, insured parties can often avoid a rate increase in certain situations, such as minor accidents or when it's their first accident on record.

To be clear, you're not guaranteed to see your auto insurance costs rise following an accident you didn't cause. Rather, it's something that might happen. But don't let your fear of higher car insurance costs prevent you from filing a claim with your auto insurer after an accident. That's what your policy is there for.

Furthermore, if you decide to pay for your car's damage out of pocket rather than risk an increase to your auto insurance premiums, the amount you shell out might far exceed the uptick in premium costs you're hit with. You could, for example, be forced to take a few thousand dollars out of your savings account to pay for accident-related damage to prevent a scenario where your auto insurance rises by just $40 a year.

So don't hide the fact that you were in an accident from your insurer. And if your premium rates do go up a lot after an accident you didn't cause, you can use that as a reason to shop around for new coverage.