If you’ve been in a car accident that wasn’t your fault, you may be wondering how it will impact your insurance rates. The good news is that in most cases, your premiums should not increase significantly due to an accident caused by someone else.
In Michigan, the handling of car accident expenses differs from many other states due to its no-fault insurance system. For vehicle damage, Michigan uses a mini-tort system, where drivers can recover a limited amount from the at-fault driver’s insurance for collision repairs. Medical expenses are typically covered by your own insurance policy, regardless of fault. Additionally, this no-fault framework can lead to situations where your insurer pays out even when you’re not at fault, potentially resulting in premium increases.
Factors That Influence Insurance Rates
Insurance companies consider numerous factors in determining how much a driver will have to pay for coverage. Some of the factors that may influence the size of your auto insurance premium include:
- Your age
- Your driving record
- The number of years of driving experience you have
- Your credit score
- The state and zip code you live in
- Your gender
- Your insurance history, including whether you have any gaps in insurance coverage during your driving history
- The average number of miles you drive per year
- Your marital status
- Your claims history
- The policy limits and deductibles you select for your coverages
- The make, model, and year of your vehicle
- Whether you lease, finance, or own your vehicle outright
How Not-At-Fault Accidents Affect Your Insurance
Because Michigan operates a no-fault insurance system for auto accidents, your insurance premium may rise even after a crash you didn’t cause. Michigan law requires you to first contact your auto insurance provider for medical expenses and lost wages through your personal injury protection coverage, even if you didn’t cause the accident. As a result, your insurer may increase your premiums to recoup the PIP benefits it paid you.
Steps to Take After a Car Accident
When you’ve had a car accident, you can best protect your legal rights by:
- Reporting the accident to law enforcement and requesting a copy of the police crash report
- Notifying your insurance company about the accident as soon as possible
- Seeking prompt medical attention and following your doctor’s treatment recommendations or recovery instructions
- Obtaining copies of your medical records and gathering bills, invoices, receipts, and pay stubs to document your expenses/losses
- Contacting a car accident attorney as soon as possible to get help dealing with the insurance companies
Tips for Lowering Your Insurance Premiums
If you worry about seeing your car insurance premiums rise after a car accident, you can take steps that might help you secure a lower insurance premium:
- Get premium quotes from multiple insurers when your policy comes up for renewal. Some insurers may offer lower premiums to attract your business.
- If you have a homeowner’s, renter’s, motorcycle, or boat insurance policy, contact your auto insurance provider to see if they offer bundling. Insurers frequently give premium discounts to policyholders who bring all their insurance business to the insurance company.
- Evaluate your policy limits and deductibles. You might obtain lower insurance premiums if you don’t need a higher policy limit or can withstand a higher deductible.
- Ask your insurer about discounts they offer, such as safe driver discounts, loyalty discounts, or discounts for completing driver’s education courses.
Contact a Car Accident Attorney Today
If you’ve been injured in a car accident caused by another driver in Michigan, contact Atnip & Associates, PLLC, today for a free, no-obligation consultation. We’ll be ready to discuss how our legal team could help you seek the compensation you’re owed while helping you avoid a costly rise in your car insurance rates.
