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What Happens to Your Car Insurance if You Were at Fault in an Accident?
Being involved in a car accident is an unfortunate and stressful situation, and it becomes even more complicated when you're found at fault. Apart from the immediate concerns about your safety and the well-being of others involved, you may also be wondering about the implications for your car insurance.
Understanding how your insurance policy will be affected (i.e., rate increases, claim process, policy renewal, etc.) can help you make informed decisions and feel more prepared after getting into an at-fault accident. Insurance companies often handle car accident claims differently, so be sure to review your policy and coverage details with your insurer directly.
What Does the Insurance Claim Process Involve?
In the state of Georgia, the at-fault driver can be held liable for any personal injuries and/or property damage that resulted from the accident. Ideally, the at-fault driver’s insurance policy will cover all liabilities and damages.
If you were found at fault in an accident, you will need to file a claim with your own insurance company. Be ready to provide all the necessary details about the accident, including the time, date, location and any other relevant information.
Your insurance company will then investigate the claim and assess the extent of liability and damages to determine the appropriate payments. In most cases, you should not have to pay for more than your degree of fault in an accident.
If your policy limits are adequate, your insurance should cover all the property damage and injuries suffered by the other driver and passengers involved in the crash and you won’t be forced to pay anything out of pocket. Your insurance company is obligated to defend you and cover your liability up to your policy limit.
Will My Insurance Rate Increase After an Accident?
One of the most significant (and often unavoidable) impacts of being at fault is the potential increase in your insurance premiums. Insurance companies consider at-fault accidents as an indicator of higher risk, leading to an adjustment in your rates. The exact rate increase will depend on various factors such as your driving history, previous claims and the severity of the accident.
Some companies offer accident forgiveness perks. A common policy is to not increase your rates for your first accident in which you were at fault or fault was disputed if you’ve had no previous accidents for a certain time interval (often three to five years). Your rates would be increased after subsequent accidents within that timeframe.
It’s best to speak with your insurance company about rate increases after getting into an at-fault accident.
How Do Deductibles and Coverage Limits Apply?
In most instances, you will likely be responsible for paying your deductible before your insurance coverage applies. Review your policy to understand the coverage limits and the maximum amount your insurance company will pay for damages. If the damages exceed your coverage limit, you may have to pay the remaining expenses out of pocket.
Defending yourself from unfair damage or injury valuations can be extremely difficulty. Luckily, your insurance company is obligated to defend you from the other party and their insurance company. Your insurer also has an interest in minimizing the cost of damages, and their claims adjusters can work with local insurance defense lawyers who can dispute claim allegations or litigation against you.
Will My Insurance Company Decline a Policy Renewal?
At the time of renewal, your insurance company will reassess your policy while taking into account your recent at-fault accident. Depending on the severity and frequency of accidents, they may choose to increase your premiums further or decline to renew your policy.
If your current insurance provider decides not to renew your car insurance policy, you can compare quotes from different insurers to find the most competitive rates.
Need Help Negotiating with Insurance Companies? Speak with a Car Accident Injury Lawyer in Atlanta
Every car insurance company has a set of negotiation strategies to protect their bottom line and avoid litigation where possible. If you were injured in an accident caused entirely or partially by another driver, a car accident attorney can help you navigate the steps involved and fight on your behalf. Depending on the details of your accident and who is determined at fault, you may be entitled to compensation.
Contact our office at (404) 588-1001 and schedule your free consultation to get started today.
