If Someone Hits Your Car, Will Your Insurance Rates Go Up?

Many years ago, I was in an auto accident when another driver hit the side of my car. The other driver was to blame, and their insurance company paid for my totaled vehicle.

I let my insurance company know that the incident occurred, even though the other driver's insurer was paying for the costs — but I thought nothing of it since I didn't make a claim and hadn't been to blame.

Unfortunately, though, when my insurance policy renewed, my rates were higher. That left me wondering if it was just a coincidence or if my rates rose because the other driver hit my car. And, was this standard policy — did all auto insurers do this?

It would be nice if there were a clear-cut answer to the question: Will my car insurance go up if someone hits me? Unfortunately, it's complicated. Yes, your rates could go up, but it depends on many factors.

Key takeaways

It's possible your insurance premiums will increase after someone hits you.
Some data shows drivers who were involved in a no-fault crash will see their insurance costs increase by 10% on average.
Insurers may view you as a higher risk for a claim because of your past accident.

Why car insurance rates could go up

When you are involved in a collision, it becomes your responsibility to report a car accident to the appropriate parties.

If the crash causes significant damage or injuries, you'll usually need to report it to the police. You'll also want to call your insurance and report the incident to your insurer, even if you think the other person was at fault.

In most states, the insurer of the at-fault driver must pay for your damages, if they caused you property damage or injury due to the accident. Still, you need to tell your insurer about the incident, in case you need to make a claim with your insurance company.

When you end up with an accident on record, even if it was not your fault, your insurance rates could increase. Whether they will or not depends on:

Your insurer's policies regarding how they treat not-at-fault accidents
Whether you have accident forgiveness, which should protect against rate increases regardless of who is to blame
State law, as some states prohibit insurers from raising rates on drivers who weren't at fault
Whether you have to make a claim (such as on your uninsured /underinsured motorist coverage — if the other driver doesn't have enough coverage to pay for your losses)

Even if your insurer does not pay out any money, you could still find your rates increasing. In fact, the Consumer Federation of America suggests a 10% average annual increase occurs for drivers who were involved in a collision that someone else caused.

The reason is that even not-at-fault accidents indicate the potential for you to be involved in more accidents.

Since insurers believe there is a statistically significant increase in crash risks after you were involved in a not-at-fault incident, they often will charge you higher premiums to account for the increased likelihood of having to pay out another claim.

State laws

It's really unfortunate to see your rates go up when you did nothing wrong. Sadly, in many states, it's perfectly legal for insurance companies to raise your premiums after a not-at-fault crash.

That's not the case everywhere, though. A number of states prohibit insurers from raising rates for a not-at-fault collision, including but not limited to California, Oklahoma, Arizona, Ohio, and Georgia. Here are some of the laws in those states that protect you:

According to the California Department of Insurance, auto coverage rates and premiums must be calculated based on the safety record of the insured driver. Title 10, California Code of Regulations Section 2632.5, subdivision (c)(1)(B) provides further clarity on what this means, specifying that the policyholder's safety record can include principally at-fault accidents. The law does not allow not-at-fault crashes as a deciding factor.
Oklahoma is another state that provides protection, with the Oklahoma Insurance Department explaining, "Oklahoma law prevents an insurer from raising your premiums for not-at-fault accidents; they may apply surcharges when filing at-fault accidents or other types of losses."
Arizona Revised Statutes section § 20-263 states, "No insurer shall increase the motor vehicle insurance premium of an insured as a result of an accident not caused or significantly contributed to by the actions of the insured."

Ohio Revised Code Section 3937.22 says insurers are not allowed to increase liability premiums on the basis of a single accident when the insured's actions didn't cause the accident, and the insured didn't enter a plea deal with law enforcement officials.
Georgia Code Section 33-9-40 states that "No insurer shall surcharge the premium or rate charged on a policy of motor vehicle insurance or cancel such policy as a result of the insured person's involvement in a multivehicle accident when such person was not at fault in such accident."

No-fault state laws

As mentioned above, the majority of U.S. states are fault states. In fault states, the at-fault driver must cover the losses of the crash victims whom the driver harmed. This can include medical costs, lost wages, pain and suffering, emotional distress, property damage, and any other losses that occurred. This rule applies after any accident.

A number of states are no-fault states, though. These include:

Florida
Hawaii
Kansas
Kentucky
Massachusetts
Michigan
Minnesota
New Jersey
New York
North Dakota
Pennsylvania
Utah

In no-fault states, drivers must buy personal injury protection (PIP) coverage to pay for their own losses after a minor crash. Drivers can't make a claim against the at-fault motorist for these costs unless the accident meets the state's definition of a serious incident.

When you make a PIP claim, your insurance rates may increase slightly, but usually not much. That's because PIP claims are typically subject to strict coverage limits. In New York, for example, the default policy limit for a PIP claim is $10,000.

Some states also prohibit insurers from raising rates due to a PIP claim. For example, the Maryland Insurance Administration stated that "The only type of automobile insurance coverage that is prohibited from causing a premium increase is Personal Injury Protection (PIP) coverage. If you file a PIP claim for medical expenses or lost wages, this cannot be held against you to increase your premiums, regardless who is at fault."

Uninsured driver at-fault accident

In fault states, there are some situations where you have to turn to your own insurer to make a claim for damages, even though the law says the other driver should foot the bill because they caused the incident. This can happen if you are in a crash with a driver who has too little insurance or no insurance at all.

If the at-fault driver has no insurance or has too little insurance to pay for all your losses, you could try to collect from them personally by suing, but this usually isn't going to be very successful, as they may have no assets.

Instead, most people make an uninsured motorist claim if they are hit by a driver without the coverage to pay for their losses or if they are hit by a driver who flees the crash scene and isn't found.

Uninsured motorist coverage stands in for an at-fault driver if you have a policy in place before a crash. Many states require you to buy uninsured motorist coverage, unless you opt out in writing. You can get compensation up to your policy limits for your losses from your UI coverage.

Unfortunately, if you use this coverage, this could make your rates rise, unless your state prohibits it.

FAQs

Does someone hitting you make your insurance go up?

Your auto insurance rates can go up after an accident, even if someone else was at fault. While some states prohibit rate increases for not-at-fault accidents, many don't.

Unfortunately, some insurers believe one past accident means another is more likely, even if you weren't to blame, so they raise your insurance rates even after a not-at-fault crash.

The Consumer Federation of America data shows that rate increases average 10% for not-at-fault drivers, while at-fault drivers could see prices rise as much as 49% on average.

Should I call my insurance if it wasn't my fault?

You should call your insurance after any accident, no matter who was at fault. You may need to rely on your insurer if the other driver has too little coverage or if there is a dispute over fault. You need to call your insurer to ensure you remain eligible to have your crash losses covered if necessary.

How long does an accident stay on your record?

A car accident typically stays on your driving record for 3 to 5 years and can impact your insurance rates for that entire time.

The more recent an accident is, the more impact it will have on your rates. If you were at fault for the accident, this also leads to larger rate increases than if you were not to blame.

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Bottom line

It's disappointing to see your auto insurance rates increase after an accident that was caused by someone else. Still, you shouldn't be tempted not to report an accident, because if it turns out you need coverage, you want your insurer to be there for you.

If you're concerned about the price hikes, ask your insurer what you can do to try to avoid a big premium increase. You may be able to take a defensive driving course, for example. You can also shop around to see what other coverage options there are, as different insurers treat crash reports differently, so you may be able to find a better deal by going elsewhere.

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