It is common for car insurance to go up after being involved in a car accident in Maryland. If you are an at-fault driver in the accident, your car insurance will most likely increase after filing a claim.
In Maryland, car insurance rates increase significantly depending on the severity of the accident, driving record, and the type of car insurance you have.
At-fault accidents, racing, speeding, distracted driving, drunk driving convictions, reckless driving, and violations of various other Maryland driving laws factor into car insurance rates for high-risk drivers in Maryland.
Car insurance rates differ from state to state after a car accident and some states report costlier rates than others.
Maryland is considered to be a state with one of the lowest premium increases after a car accident. the average car insurance premium increase in Maryland after an at-fault car accident is $1,900, compared to the average increase in the United States of $2,010.
As for percentages, you should expect your car premium to increase after the accident by 21.5%.
How Much Does Car Insurance Go Up Depending on the Violation?
Your car insurance will likely go up if you are to blame in a car accident or are convicted of an on-road offense in Maryland. the more violations you attain, the greater increase in the cost of your car insurance.
In Maryland, your first minor accident or violation results in a penalty of $503, each year, in car insurance payments. Violations that are related to DUIs or DWIs will cause one’s car insurance to rise to about $490 each year.
Why Do Car Insurance Rates Go Up After an Accident?
Many drivers who have been at fault in a car accident tend to eventually cause another accident. Insurance companies experience an additional risk and higher expenses when insuring a new or at-fault driver compared to a driver with a clean record.
Therefore, the car insurance company combines the additional risk that the driver poses to the company and the cost of an insurance policy for a high-risk driver.
How Long Will Your Rate be Higher?
An at-fault accident that left damages to your vehicle that exceed $2,000 can cause car insurance premiums to last anywhere between three to five years.
The length of time in which one’s car insurance remains high depends on the state or insurance company. Typically, the rates will decrease over the years as long as another at-fault accident does not occur.
The severity and type of accident that occurs can determine the length of time that one will experience a rise in rates. Generally, for no-fault accidents, one may experience three years of increased rates.
For a minor collision, it is not uncommon for insurance to be raised for about five years.
Those who have been to blame for hit-and-run accidents and DUI crashes often experience 8-10 years of increased rates.
All of these rates differ among providers, but it is important to keep in mind the average time in which you will be paying for violations.
How Can You Get Cheaper Insurance After a Car Accident?
If you are to blame for a car accident, you will likely experience higher auto insurance rates, but you will not be stuck with the rates forever.
Insurance rates vary with different providers, so there could potentially be another provider that would be a better option when it comes to cost.
Your first step would be to compare car insurance quotes from different companies and choose the provider that best fits your needs.
How can I lower my rates after an accident? Although you can’t change the accident after it happened, there are a few things you can try to reduce your premium.
Ask for Accident Forgiveness:
This is a proactive tip many people use when trying to lower their insurance premiums after an accident. When shopping for car insurance, ask the insurer if they have an accident forgiveness practice.
Companies that offer accident forgiveness after one at-fault car accident will allow you to receive no increase in premium if you fit particular criteria. If you are to blame for a car accident and seek accident forgiveness and it is granted, your auto insurance rates will not increase.
Go to Traffic School:
Many insurers are willing to lower rates if a driver with a history of accidents attends a traffic school. You will need to take an approved defensive driving course to meet the requirement.
Avoid Filing Claims for Small Things:
The more claims one makes, the more payouts an insurance company experiences. With this being said, it is important that you only file claims for significant property damages or accidents that need assistance.
If you recently filed a claim for an at-fault accident, do not file any more claims for as long as possible. Filing multiple claims within a certain amount of time will cause your car insurance rates to increase with each claim.
Furthermore, car insurance companies evaluate clients’ premiums based on the financial risk they pose to the company.
Increase Your Credit Score:
Although this will not be immediately effective, increasing your credit score allows for better premium offers from insurers.
Those who have credit scores greater than 600 tend to experience better premium offers. Increasing your credit score takes some time, but it can relieve you of high rates.
Consider Your Deductible:
Insurance deductibles and insurance premiums have an inverse relationship. Selecting a lower deductible will result in a higher premium while selecting a higher deductible will result in a lower premium.
You should consider increasing your deductible after an at-fault car accident as it will allow you to decrease your annual premium.
Do Car Insurance Rates Increases Differ Depending on Age?
Auto insurance costs differ depending on a person’s age in Maryland. Typically, a teenager or a new driver’s insurance would be much higher than someone who is an experienced driver or is older.
Auto insurance is higher for teenagers or new drivers as insurance companies consider people in these categories to be potential risks to other drivers.
In Maryland, car insurance for a sixteen-year-old driver typically costs about $4,853 each year while a driver between the ages 50-59 experiences $1,050 in insurance rates annually.
Will Your Car Insurance Still Go Up if the Accident was Not Your Fault?
Any accident may cause one’s car insurance to go up whether at fault or not. If you are not at fault, your car insurance will most likely not significantly increase and in most cases, it will not increase at all.
As you will not face any costs from the accident, the at-fault driver’s insurance provider will become responsible for medical bills and property damage costs.
Your insurance provider examines how costly you are to insure. If you have been at fault in a car accident, you are at a higher risk. If you have been involved in several not-at-fault accidents, your risk level is increased, and therefore, your insurance may increase because you are prone to causing accidents.
Will a No-Fault Car Accident Show Up on Your Record?
The answer is yes. A no-fault driving accident will show up on one’s record. Although you may have a clean driving record and are a good driver, filing a claim and receiving money from an insurer will cause the accident to be displayed on your record.
In What Situations Does Your Insurer Raise Your Premiums After a No-Fault Crash?
Your insurer may raise your premiums after a no-fault crash if an uninsured driver caused the accident. If the driver to blame is not insured, the no-fault driver’s insurance company remains responsible to pay compensation for vehicle damage or injuries.
Although you are not to blame, because the at-fault driver is uninsured, the accident makes it costlier for the no-fault driver’s insurance company. In this particular situation, it is common for the car insurance company to give the extra cost to the driver by raising their premiums.
When Should You Not File a Claim?
You should not file a claim for a minor single-car accident in which little damage occurs if the cost to repair the damage is less than your deductible.
It is also important that you try to hold off on filing a claim if you had recently filed a claim for an at-fault car accident. Filing another claim after you were in an at-fault accident will cause your rates to significantly increase.
Auto insurers keep track of how many claims a client makes and their interactions with customers. It’s important that you are not recorded as a high-risk driver in their itinerary.
In conclusion, you are better off being a not-at-fault driver, even though car insurance rates may increase whether you are not at fault or are at fault. it should be in your best interest to be accident-free and keep yourself and others on the road safe.