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Will My Insurance Rates Raise After a No-Fault Car Accident? - Detroit Injury Lawyer
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Will My Insurance Rates Raise After a No-Fault Car Accident?

 

Personal Injury Results

$15.3 MILLION | AUTO ACCIDENT (WAYNE COUNTY, MI)

$3 MILLION | PEDESTRIAN ACCIDENT (INGHAM COUNTY, MI)

$2.1 MILLION | PREMISES LIABILITY (OAKLAND COUNTY, MI)

$2 MILLION | TRUCK ACCIDENT (OAKLAND COUNTY, MI)

$1.9 MILLION | AUTO ACCIDENT (WAYNE COUNTY, MI)

When you purchase an insurance policy, the rate you pay is determined based primarily on the likelihood that you will be involved in a car accident. Insurance companies base their business model on the hopes that they will not need to pay claims, so if they anticipate that a driver will eventually file a claim, that driver will need to pay higher premiums. Typically, rate increases are even higher if the policyholder is at fault for an accident.

Drivers are often surprised to learn that their insurance rates can increase after an accident even if they have a no-fault policy. Whether you were responsible for a collision or not, and regardless of the type of insurance you have, your insurance rates can increase after an accident — and likely will. Being involved in an accident, despite fault, shows your insurance company that you are at risk for collisions and that they may need to pay another claim in the future. For this reason, your premiums will go up.

Reasons Your Insurance May Go Up


Being involved in an accident is not the only reason your no-fault insurance rates could increase. Again, insurance premiums are based on your provider’s predicted likelihood that you will be involved in an accident and they will need to pay a claim. There are many different factors that can influence this decision.

In addition to rate increases caused by accidents, your insurance rates may rise if you:

  • Live in a place with a high amount of car accidents

  • Drive a car that is considered dangerous

  • Are statistically more likely to be involved in a car accident based on age, sex, etc.


Although it is likely that your insurance rates will increase after a car accident, there is no guarantee of this. It is possible that not being at fault for an accident could impact your insurance provider’s decision. The cost of your insurance premiums will depend on your unique circumstances, your insurance provider’s policies, and other details concerning your driving habits and history.

At Goodman Acker P.C., our legal team is available to answer any questions you may have about car accidents, insurance, and more. We look forward to speaking with you and helping you through your legal concerns.

To schedule a free consultation with our lawyers, send us a message or call (248) 286-8100.

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