How A No Fault Accident Can Affect Your Insurance Rates

No fault auto insurance sounds quite simple, with most people assuming that as long as the accident is not their fault then their car insurance rates will not go up, but this may not always be the case. This is the reason that so many people try to prove an accident was the fault of the other driver. Even when a citation is issued, many drivers feel that the accident was not their fault. Fault is decided by the police and the courts, however, and if you receive a citation or ticket then you are generally deemed to be at fault.

Even if you were stopped and the other driver is very clearly at fault and receives a ticket, your car insurance costs may still rise because of an unrelated ticket, accident, or injury that occurred quite a while back. This may not seem fair, because your vehicle insurance premiums did not get any higher after the original incident, but then someone else causes an accident and you feel unfairly penalized. The rate increase may happen because the second accident puts you in a higher accident risk class, causing your premiums to skyrocket. Discounts may also be taken away if you receive a ticket showing you are not using the equipment responsible for the discounts. If you are in an accident that was caused by another driver, but you receive a seat belt ticket, your seat belt discount may be taken away, causing higher rates for your car insurance policy.

The length of time between accidents or incidents is considered before your rates are raised, and this time limit will vary from one car insurance company to another. One company may only consider things within the last two years, while another auto insurance company may go back four or five years. There are some vehicle insurance companies that offer policies with an accident forgiveness clause or rebate. These programs may offer a free pass on one accident or ticket within a specific time frame, so that good drivers are not penalized for one lapse in judgment or mistake. Rebate programs may offer money back for every policy term that results in no accidents or tickets, giving consumers an extra incentive to be a good safe driver.

One accident or incident that is not your fault should not result in higher premiums, unless your driving record is not clean within the last few years. Cheap auto insurance is possible, as long as you do not have multiple accidents within the specific time frame stated by the car insurance company. If your rates increase after one accident that you are involved in without fault, discuss this matter with your auto insurance company, and ask for an explanation for the premium increase. It may be a mistake that can be easily corrected, but it may be due to other factors in your driving record over the years. If there is a mistake it should be corrected quickly, so that you are not being overcharged for your car insurance policy.