Why does my insurance go up if someone hits me?
Your car insurance can still go up after a not-at-fault accident because insurance companies view any claim or collision history as a statistical indicator of higher future risk.
Why Your Rates Increase
- Risk Assessment: Insurance algorithms look at data rather than fault. Statistically, drivers who have been in one accident—even if another driver hit them—are more likely to be involved in future claims.
- Filing a Claim: When you file a claim through your own insurer (such as using uninsured motorist or collision coverage while waiting for reimbursement), it costs the company time and resources, which they offset at renewal time.
- State Regulations: Whether an insurer can raise your rate after a crash you didn't cause depends heavily on state laws. Some states completely ban rate hikes for not-at-fault drivers, while others allow it.
- Loss of Discounts: Being in an accident can cause you to lose a "claim-free" or safe-driver discount, making your overall baseline price jump.
What You Can Do
- Shop Around: Different auto insurance providers weigh accident history and risk formulas differently.
- Check for Forgiveness: Review your policy to see if you have accident forgiveness or a no-claims bonus protection add-on.