How much does car insurance increase after a claim? In Utah, your average uptick in insurance rate will be significantly higher than the national average, which is 31%, according to Insurance.com.
How much does insurance go up after an accident in Utah? Sources differ. Insurance.com says rates will go up 40%, or $487 on a $1,212 annual premium. However, Value Penguin says Utah drivers can expect a rate increase of $1,199 on a $2,423 annual premium, which is 49%, and WalletHub shows a 51% increase.
Does Insurance Always Go Up After an Accident?
Your monthly insurance payment is likely to increase after being involved in a car accident, but this isn’t always the case. One of the most important determining factors regarding how much insurance goes up after an accident in Utah is whether you were at fault or the other driver.
Two States in the U.S. prevent car insurance companies from increasing your insurance rate after a not-at-fault accident: California and Oklahoma. State Farm is also famous for being especially kind in this area—that is, not penalizing an accident victim.
Unfortunately, Utah has no such protection, but you may still come out on top. An excellent driving record will always play in your favor, as will other privileges included with your insurance plan—there’s a reason incredible car insurance costs so much.
Accident forgiveness is one of these advantages, and companies like Allstate hold bonuses like this at the forefront of their brand image.
Accident forgiveness exempts you from seeing the worst possible rate increases if this accident was your first one ever. Some insurance providers, like State Farm, will award you new accident forgiveness status if you go accident-free for a previously-stated amount of time.
What Happens After Some Time Has Passed?
After a car accident, you’ll see any changes in your policy reflected immediately following your first renewal period. After a few years, you’re likely to see monthly rate decreases that put you around the price you were before getting into an accident.
Your insurance rate should return to normal around the four-year mark if no new collisions have been added to your record in the meantime. Things may be rough for the first six months and the year to follow, but time heals all wounds. Accidents more than five years behind you are generally not considered when calculating your monthly rate, even with a different insurance company.
How Different Types of Accidents Impact Car Insurance Increase After a Claim
Does the type of car accident impact the rate increase you stand to see afterward? The type of accident and the other party or parties involved can influence your rate increase. Was anybody injured? Did anybody die? Uninsured, commercial, and state-funded motorists are all covered under their own set of rules and regulations. The person found to be at fault will be another determining factor.
Will certain types of accidents protect you from an inordinate rate increase? They can, but your provider may have different rules than the others. State Farm, for example, honors the following scenarios as no-fault cases for the policyholder. If any of these situations apply to you, you might not see a rate increase at all:
- Lawfully-parked vehicles
- Rear-ended vehicles not otherwise involved in a related moving traffic violation at the time of the accident
- Hit-and-run accidents—in this case, you will need to report the damage found promptly, within 24 hours, to be considered legally valid
- Car accidents in which the other party was in violation of the moving vehicle code and you were not
- Damage caused by birds, animals, falling objects, or military equipment
- Victims who have already received compensation directly from the other party, implying that they were, indeed, the ones at fault
We advise you to contact your insurance provider and ask a few questions. Each company is different, and each will be accountable to Utah’s driving laws.
Other Factors to Consider After a Car Accident
Looking beyond the nature of the accident, other aspects of your insurance situation may impact car insurance increases after a claim. Your car insurance provider, for example, is another influencing factor.
On average, State Farm offers the lowest car insurance rate hikes out of most mainstream industry players—you can expect a rate increase of approximately 56%. On the other hand, Progressive and Geico are some of the highest, with average rate increases of 84% and 77%, respectively.
The nature of your car insurance will also play a role—young drivers and new drivers, for example, stand to see car insurance rate increases much higher than those who have been driving for longer. The same goes for an individual who has never been in a car accident before vs. somebody who has already experienced one or more collisions.
How to Minimize Rate Increases After a Car Accident
How much does insurance go up after an accident in Utah? It depends. If you’re trying to find your footing after getting into one, Utah drivers can count on our team for advice moving forward.
One tip for those who have never been in an accident would be to shop for the best insurance provider for your needs, comparing quotes and walking yourself through several what-if scenarios.
After doing the homework, you may find that another insurance company might have a better deal to offer you in the event of a car accident in the future. We recommend making the switch—you might be able to save yourself a ton of money in the future.
If you love your current provider, adjusting your insurance plan is another way to save a bit, even after an accident. Increasing your deductible minimizes your premium but leaves you vulnerable to higher out-of-pocket costs in an accident where you are found to be at fault. Reducing your coverage is a similarly risky move, even though doing so will lower your monthly rate.
Aside from these strategies, we can always recommend practicing excellent driving habits, such as staying off your phone and never choosing to drive impaired. A great credit score will also usually net you a sweeter monthly rate—do what you can to embody the characteristics of an ideal candidate.
Get in touch with us to learn more about what to do after an accident, particularly if you were injured.
Michael is an attorney who started Ipson Law because of his passion for personal injury law. He graduated with a Juris Doctorate degree from McGeorge School of Law in Sacramento, CA. Learn more about Michael on our about us page, and contact Ipson Law to find out how we can help you.
