Ideally, you would never get into a car accident; however, accidents do happen, which is why you’re required to have auto insurance in the first place. Fortunately, when an unexpected accident strikes, your insurer will guide you through the process, starting from your initial claim to settlement. 

You may be familiar with the myth that insurance rates automatically go up after an accident. We’re here to discredit this myth in today’s blog. 


Car Insurance Rates Don’t Always Increase

Minor accidents, such as fender benders, don’t always translate into a rate increase, especially if you have a history of otherwise safe driving. Furthermore, if you weren’t at fault for the collision, your premium might stay the same. Some policies include accident forgiveness, which rewards safe driving patterns by considering your driving record before your accident.  

So, when do car insurance rates increase? Continue reading to find out. 


When Do Car Insurance Rates Increase?

Your premium will most likely go up following a major at-fault accident. Remember, your driving record is a major factor in establishing your premium, so a recent, significant collision will show up on your policy when you renew it. 

Furthermore, if you have a safe-driving discount on your policy that your insurer awarded for a claim-free driving record, losing it can result in a rate increase.


How Long Will My Rate Stay Raised?

After an accident, your driving history will follow you around longer than you probably want. Insurance providers generally factor in the severity of your accident and the cost of damages to establish an increased rate and the amount of time you will be subjected to. 

Fortunately, your accident surcharge may gradually decrease every year you go without an accident. In most states, insurers lower surcharges slowly for three years until it’s non-existent, as long as you don’t get involved in other collisions. 


Penalties for Not Having Car Insurance in Utah

Some people don’t want to deal with the hassles that can come with car insurance policies, so they avoid paying for them; however, you should never do this. The penalties that come with driving uninsured are more challenging to deal with than handling the paperwork associated with car insurance policies. 

Section 303 of Utah’s Insurance Code states that all drivers must maintain liability coverage. Operating your car without insurance or merely allowing your coverage to lapse is a Class C misdemeanor, which is punishable with fines and license suspension. Moreover, reinstating your driving privileges can also be expensive. 

You never know when you will need to show proof of insurance. For instance, a police officer may ask for proof at a routine checkpoint. Proof of insurance can either be your actual insurance policy, insurance card, or your policy’s declaration form. 


Flickinger Sutterfield & Boulton is Here for You

Car accidents can be a traumatic hassle to overcome. If you were recently involved in one and aren’t the driver at-fault, you shouldn’t suffer the consequences. One of the experienced car accident attorneys from Flickinger Sutterfield & Boulton can ensure you receive damages from the driver who caused the accident. 

We’re the only law firm based south of Salt Lake County dedicated to personal injury cases. We have offices throughout Utah County, as well as West Jordan. Schedule your free case evaluation today