Will My Rates Go Up After an Accident in Texas
The honest answer is: it depends. Whether your auto insurance rates increase after an accident in Texas depends on whether you were at fault, the severity of the accident, your driving history leading up to the accident, your carrier’s specific rating policies, and whether your policy includes accident forgiveness.
Not every accident results in a rate increase, and the magnitude of any increase varies significantly by situation. Here is what you need to know.
At-Fault vs. Not-At-Fault Accidents
At-fault accidents, those where you are determined to be responsible for causing the accident, are much more likely to result in a rate increase than not-at-fault accidents. When you cause an accident that results in a claim, you are demonstrating a higher risk profile than drivers who have not caused accidents, and carriers adjust your premium to reflect that.
Not-at-fault accidents, where another driver caused the accident, generally have a smaller impact on your rates in Texas. Some carriers do not increase rates for not-at-fault accidents at all. Others may apply a small increase. This varies by carrier.
How Much Can Rates Increase
After a first at-fault accident, rate increases in Texas commonly range from 20 percent to 50 percent depending on the carrier and the severity of the accident. A minor fender bender results in a smaller increase than an accident with significant injuries or property damage. Multiple accidents within a short period can result in substantially higher increases or even policy non-renewal.
How Long Does an Accident Affect Your Rates in Texas
Most carriers look back three to five years when calculating your premium. An at-fault accident typically affects your rates for three years from the date of the accident. After three years, if you have had no additional incidents, your rates should return to a level that reflects a clean driving record.
Accident Forgiveness
Some carriers offer accident forgiveness as a policy feature that prevents your first at-fault accident from raising your rates. This can be included in the base policy or added as an endorsement. If you have a clean driving record, accident forgiveness is worth considering as an addition to your auto policy.
What to Do After an Accident
Document the scene thoroughly with photos. Exchange insurance information with all parties involved. Report the accident to your insurance company promptly. Do not admit fault at the scene. If anyone is injured, call 911. Contact your local agent so we can help you navigate the claims process and understand how the accident may affect your coverage going forward.
Shopping Your Coverage After an Accident
If your rates increase significantly after an accident, it is worth shopping your coverage to compare what other carriers would charge. Different carriers rate accidents differently and there can be meaningful variation in premiums for drivers with the same driving record. We can help you find the best available rate given your current driving history.
Leave a Reply