How much will my insurance go up after a fender bender?
You’ve just been in a minor fender bender—no broken bones, and the car barely has a scratch. But as you replay the scene in your head, one question looms: How much will my insurance go up?
Even a minor accident can have surprising financial ripple effects, especially in California, where unique laws and strict insurance guidelines add layers to the process. Whether you decide to report it or not, understanding what to expect could save you from an unexpected hike in your premiums.
Should I Report a Fender Bender?
A fender bender is often seen as a minor accident because it typically involves low-impact collisions. However, even minor accidents can cause injuries, such as whiplash or soft-tissue damage, which may not present symptoms immediately. Therefore, it’s good practice to report and document the accident, regardless of the initial appearance of damage.
Under California law, any accident resulting in injuries or damages exceeding $1,000 must be reported to the DMV. Failing to report can complicate future claims and may violate state law.
Have you been injured in a fender bender? Our Los Angeles Car Accident Attorneys with El Dabe Ritter Trial Lawyers can help you pursue damages for your injuries and property damage, however minor.
Factors That Impact Insurance Rate Increase
It is important to note that not all insurance providers will impose a rate increase on your policy after a car accident, especially a fender bender. For those who do, the degree of increase will vary from case to case depending on the following factors:
Driving History
Most insurers will consider the last 3 years of your accident record to determine increases to your insurance premiums. If the fender bender is your first accident and is minor, you are less likely to see any meaningful increases. In contrast, a policyholder with a substantial history of accidents, the spike may be higher.
Fault
Fault plays a role in determining if and how much your insurance rates may increase after a collision. In California, a fault-based state, the driver deemed responsible for the accident could face higher insurance premiums. Your insurance provider may see you as a higher liability, potentially resulting in a rate increase. On the other hand, if another driver is entirely at fault, your rates are less likely to change—especially if your own insurer isn’t involved in paying for damages. However, partial fault can complicate matters; if you’re found partially liable, you may still see a premium hike.
Recommended Reading: Who is At Fault in a 3-Car Fender Bender?
Extent of Damage
Insurance companies will charge your premiums depending on how much of a risk you are to insure. If your fender bender results in extensive damage, you will likely face a higher hike in your insurance rates. Simply put, the severity of the accident will determine the increase in your rates.
Vehicle Type
While exotic cars often carry higher insurance premiums, California insurers cannot raise rates based on vehicle type alone after an accident. Instead, rate increases are based on factors like your driving record and experience, per state law.
Accident Forgiveness
Some insurers offer accident forgiveness programs, allowing certain low-cost claims without premium hikes. These programs vary by provider, so check with your insurer to see if this option is available and if you’re eligible.
If, despite having a great driving record, your car insurance company increases your premiums, you might want to consider shopping around for a better quote.
Insurance Rate Increase by State
Although insurance premium rates may surge regardless of where you reside, the changes will usually vary from state to state. An InsuranceQuotes Study found that California and New Hampshire reported the largest increases for an auto claim of $2,000 or more, at 63.1 and 60.3 percent, respectively. The lowest increases were recorded in Maryland and Michigan at 21.5 and 26.1 percent.
According to the experts who reviewed the study, California’s high spikes could be blamed on the proposition passed in 1988 that limits the factors an insurance company may use to set auto insurance rates. Premiums can only be based on driving record, years of experience, and average miles driven.
Consult a Car Accident Attorney
The best answer to “how much will my insurance go up after a fender bender” is it depends. Insurance surcharge rates tend to vary depending on several factors.
If you’ve been in a fender bender, consult with a personal injury attorney.
Minor accidents can have unexpected consequences, from delayed injury symptoms to complex insurance processes.
El Dabe Ritter Trial Lawyers is a leading personal injury law firm. Our Los Angeles Car Accident Attorneys are dedicated to helping you get the best outcome from your case. If you have been injured in a fender bender, contact us today.
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