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How Much Will My Insurance Go up After a Fender Bender?

By November 13, 2019 No Comments

A fender bender is a minor car accident. Regardless of how minor the accident, if you report it to your insurance company, your premium rates will undoubtedly rise. That is why it is so crucial to have an Atlanta Car Accident Lawyer on hand whenever you have an accident. There is no generally accepted answer to the question, ‘how much will my insurance go up after a fender bender?’ the answers range from very optimistic to some that can really dampen your spirits. However, the answer depends on several factors including the nature of the accident, your insurance company and the type of car you drive.

Factors That Determine an Insurance Rate Increase After a Fender Bender

Extent of the Accident

Even though a fender bender is a minor accident, the extent of the damage can vary widely. The rate of increase of your insurance will be determined by how bad the damage caused by the fender bender is.

Generally speaking, the smaller the damage, the less the hike and vice versa. The height of the bumper is a significant factor that affects the extent of the accident’s damage. The car speed during the fender bender will also affect the severity of the damage.

Insurance companies all about avoiding risk. Therefore, if there is significant damage involved in your fender bender, the insurance will charge you a higher rate as they see you as a higher risk to insure.

Driving History

Your driving record will also determine the rate by which your insurance rate increases after a fender bender. If the fender bender is a first time offense with no significant damage, then the increase will be minimal. Some insurance companies have ‘accident forgiveness’ meaning that they do not increase your monthly rate if your claim is below a certain amount.

On the other hand, if your driving record has a substantial history of car accidents, you will see a large increase in your monthly premium rate. Most insurance companies will focus on the past three years of car accidents to determine how they will adjust your monthly rate.

Type of Vehicle

If you own an expensive or exotic vehicle, your insurance rate increase will not only be significantly higher but it may also be more than the national average after even a minor car accident.

The rise depends on your insurance company but many insurance companies are unforgiving in such cases. Insurance rate increases may be as high as 50% for such expensive and exotic vehicles.

Filing a Claim

The answer to ‘how much will my insurance go up after a fender bender?’ may tempt you not to alert your insurance provider about the incident. If there was miniscule damage after the fender bender, it may be cheaper to pay the cost out of pocket.

On the other hand, reporting the fender bender to your insurance company may be a prudent idea no matter how inconsequential the accident. There may be hidden costs you are unaware of and the insurance company will help you pay them.  

Regardless of how much your monthly insurance rate rises after a fender bender, you should report it to your insurance company. There are a variety of factors at play in such a situation. One thing you should do is contact Ponton Law, the experienced Atlanta Car Accident Lawyer for legal assistance. Call the best car accident attorney in Atlanta today for a consultation.