The bodily injuries and car damages that you incurred from your car accident may already carry a great financial burden. So likely the last thing that you want is for your car insurance provider to raise your premium upon its renewal. Follow along to find out how your car insurance rate may increase after a crash and how a proficient Panama City car accident attorney at Manuel & Thompson, PA can help you avoid this.

How is my car insurance rate initially set?

Your selection in the level of coverage and the deductible you receive, along with your selection of a certain insurer, may play a role in your car insurance rate. But you must understand that certain factors are out of your immediate control. That is, your car insurance provider may consider the following factors when initially setting your rate:

  • The make and model of your vehicle: for example, most car insurance providers consider certain cars to be more expensive to repair (i.e., luxury cars) or more likely to get involved in an accident (i.e., sports cars), thereby establishing higher rates for these car owners.
  • Your residential address: for example, most car insurance providers consider city areas (i.e., Panama City) to be more prone to accidents, thereby establishing higher rates for city residents.
  • Your age: for example, most car insurance providers consider drivers under the age of 25 to be riskier drivers, thereby establishing higher rates for younger drivers.

How might my car insurance rate increase after an accident?

Above all else, your driving history is a leading factor that affects your car insurance rate. So your premium may slightly increase after it is reported that you have committed a traffic violation (i.e., a speeding ticket or other moving violation). But it is almost always the case that it will rise after an accident.

In the state of Florida, this increase may be anywhere between 22 percent to 77 percent. Of note, this increased rate may apply regardless of whether you are found to be a minority or majority at fault for the event. However, if you were substantially to blame, or if this is your second accident within the past five years, then you may expect an increase at the higher end of this range. With this, the inflated rate may stay in effect for anywhere between three to five years.

You may rest easier knowing that your car insurance provider may offer an accident forgiveness program that may help you cope with this inflated rate. What’s more, you may turn to an attorney who can help prove that your accident was due to little to no fault of your own to begin with.

This is all to say that you must consult one of the talented Panama City auto accident attorneys before proceeding any further with your insurance claim. So please reach out to Manuel & Thompson, PA today.