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How does a car accident impact my insurance – does “fault” matter?

On Behalf of | Aug 29, 2022 | Car Accidents |

If you are involved in an auto accident that is another party’s fault, it’s reasonable to think that you won’t have to bear any of the costs associated with it. Most people don’t think about their insurance coverage potentially increasing, but even if you’re not at fault, it could.

Insurance is a little bit of an unusual factor in car crashes. To start with, it’s typical for insurance rates to increase if you are at fault for a crash. Why? The insurance company believes that you’re more of a liability than in the past.

The trouble is that even if you’re not at fault, your insurance could still go up. For example, if you have been in two crashes this year, the insurance company may believe you’re a greater liability to them even though you were not at fault for either of them.

This is problematic, since crashes generally stay on your record for around three years.

Accidents can impact your driving record, even when you’re not at fault

It’s true that crashes can hurt your driving record even when you’re not to blame. Every state is going to handle crashes a little differently, but you should know that it’s possible your insurance will rise.

Texas uses a points-based system known as the Driver Responsibility Program to determine the risk you pose. Those who have more points will have to pay higher insurance rates most of the time. The points don’t stay on your license forever, but they do stay for three years. You should not receive points for being in a crash if you were not at fault, but your insurance rates could still increase just by virtue of being involved in a crash.

Your insurance rates shouldn’t go up significantly. If they do, that’s something that you may want to address with the company, since you were not to blame. When you make your personal injury claim, you can also include the increased cost of your insurance when you attempt to make a claim for all your financial losses. The at-fault driver may end up having to cover the overages.

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