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This Is How a Car Accident Can Affect Your Auto Insurance Rates

Auto insurance can be very costly as it is, even if you don’t have any car accidents on your record. That’s why certain companies like to boast about their accident-forgiveness or safe-driving programs because they have the potential to save policyholders good money over time.

Unfortunately, most auto insurance companies will raise your premium if you’re involved in a car accident. Since Georgia is a “fault” auto insurance state, that means if you’re involved in an accident, as long as the other party is to blame for 51% or more of the wreck, you won’t be held liable for the damages that resulted from the crash.

Read on to learn how a car accident can impact your auto insurance rates.

Several Factors Come Into Play

Injuries + Property Damage vs. Property Damage Only

According to a five-year study of insurance rate increases following car accidents, auto insurance rates increase 1.33x on average after injury-sustaining crashes. Similarly, if no injuries are sustained and there are only property damage claims filed following a crash, then the rates tend to increase 1.23x.


For example, let’s say you pay $1,000 for your premium each year. After an injury-sustaining accident involving both medical bills and vehicular repairs, you could see your premium increase to $1,333. However, the premium would only increase to $1,230 each year if no injuries were sustained, but you filed a claim for property damage.

Rate Increases Vary By Insurance Provider

Every insurance provider has its own formula for developing rate increases. For instance, State Farm policyholders tend to see their rates increase 1.20x following a crash, while Geico policyholders see their rates increase 2.18x.

Not only will rate increases vary according to the insurance provider, but state laws also play a large part. That’s why it’s so important to do your research and compare auto insurance quotes before signing on the dotted line. The same driver and incident can be handled in very different ways among the available insurance providers.

Your Age Is a Factor

Your age plays a significant role in determining your auto insurance rates. Young people are considered high-risk drivers, which means their insurance rates will automatically be higher.

Young people are charged more because they are more likely than older people to take unnecessary risks that can lead to accidents. However, since young people already pay inflated rates, they may not see very significant rate increases following a crash.

The Number of Violations on Your Record

If you are involved in accidents often, you will likely be charged higher auto insurance rates. This is done so that the insurance company can recoup some of the losses it has sustained as a result of paying out your claims.

Said simply, the more accidents you’re in, the higher your rates will be.

Georgia is a “Fault” State

As we mentioned earlier, Georgia is a “fault” auto insurance state. That means a portion of the blame will be placed on all parties involved, but not all parties will be required to pay for damages.

In addition, this means that if you are not assigned more than 51% of the blame for the wreck, then you will not be responsible for the damages, which means your auto insurance rates likely won’t increase. If your insurance company doesn’t have to pay you any compensation for the claim, then your rates shouldn’t increase.

However, if you have a history of at-fault accidents or other claims, your insurance company may deem you high-risk and raise your rates after an accident that wasn’t your fault.

If you’ve been involved in an injury-sustaining accident through no fault of your own, you may be entitled to compensation. Our attorneys are highly skilled in this area of the law and have helped many others in similar situations. Let us see if we can help you, too.

Call The Abrego Law Firm, LLC today at (404) 334-3324 to speak with our accomplished attorney about your case.