Will my car insurance increase after an accident?
One of the first questions after the initial shock of a car wreck is: Will my car insurance rates go up? YES, they will go up. If the accident is not your fault, then it will go up because your risk rating has changed. If it is not your fault, then it will go up. In Georgia, the law (OCGA 33-9-40) prohibits insurance companies from raising your rates due to any accident which is not your fault. Despite this, insurance companies have ways to get around this. As a former actuary for big insurance companies, I can tell you how they do it! They will create reasons that have nothing to do with you. The worst part is that these are things you cannot fight, like more people have moved into your area, more accidents happen in your area, the market rate has gone up everywhere and this is the accepted rate, car repairs are getting more expensive, etc.
So how do you protect yourself from this? You have the right to shop for car insurance! If you have been with your car insurance company for 3 or more consecutive years, then they will slowly increase your rates every 6 months, even if you haven’t gotten into an accident and are a safe driver. Insurance companies know they can get away with it and will always behave badly. The reasons why are:
- Car Insurance is mandatory by law. If you have a car, then you must have car insurance.
- It is backed by law enforcement. If you don’t have car insurance, and you get caught, then you go to jail.
- The top 10 insurance companies own 72% of the entire car insurance market in the United States! They essentially work together as a monopoly to set the rules, rates, and regulations nationwide without any opposition or penalty.
Use your rights to protect yourself against these companies. Start shopping for car insurance after a wreck so they can’t increase your rates for something that was not your fault!