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Do Car Insurance Rates Go Up After an Accident That Wasn’t My Fault?

In the bustling city of Las Vegas, car accidents are unfortunately a common occurrence. The aftermath of an accident can be a stressful time, especially when it comes to dealing with insurance companies. One question that often arises is whether your car insurance rates will go up after an accident that wasn’t your fault.

Legal Requirements for Car Insurance in Las Vegas

In Las Vegas, Nevada, like most states, all drivers are required to carry car insurance to operate a vehicle on state roadways. The minimum amount of liability insurance required by Nevada law includes:

  • Bodily Injury Liability: $25,000 per person/$50,000 per accident
  • Property Damage Liability: $20,000 per accident.

Bodily injury liability coverage pays for the other driver’s medical care if you’re at fault in an accident. It will also cover your legal fees if the accident results in court proceedings. Property damage liability coverage pays for repairs to the other driver’s vehicle when you’re at fault in an accident.

Impact of an Accident on Car Insurance Rates

After a Las Vegas driver causes an accident, rates increase by an average of 56%. A driver with a clean record pays $154 less per month for the same coverage. In Las Vegas, drivers who have had one accident will see their rates increase to about $141 per month.

However, it’s important to note that these figures apply to accidents where the driver is at fault. If you’re involved in an accident that wasn’t your fault, the impact on your insurance rates may be different.

What Happens When the Accident Wasn’t Your Fault?

When an accident isn’t your fault, the at-fault party’s insurance should cover the damages. However, the process isn’t always straightforward. Disputes over liability can arise, and sometimes the at-fault party’s insurance coverage isn’t sufficient to cover all the damages.

In such cases, your insurance company may step in to cover the remaining costs. This is known as a subrogation claim. Your insurance company will then seek reimbursement from the at-fault party’s insurance.

While this process is ongoing, you may see a temporary increase in your insurance rates. However, once the claim is settled and your insurer recovers the costs, your rates should return to their pre-accident level.

if you were not at fault for the accident, the insurance rates should not increase

How to Dispute a Rate Increase

If you notice a hike in your insurance rates following an accident that wasn’t your fault, there are measures you can take to challenge the increase. Begin by discussing the matter with your insurance provider and examining your policy. If there’s a valid reason for the rate hike, such as an accident where you were at fault, your insurance company should be able to furnish you with these details.

If their explanation doesn’t satisfy you, you might want to consider exploring other insurance options. Occasionally, switching to a different company can lead to more favorable rates. It’s advisable to obtain quotes from various auto insurance providers at least once a year to see if you can find a better deal, irrespective of whether you’ve made a claim in the previous 12 months.

How to Lower Your Rates After an Accident

There are numerous tactics you can utilize to reduce your auto insurance premiums following an accident. One of the most effective methods is to insure your car for its accurate value. It’s crucial for drivers with older cars to ensure they’re not over-insuring their vehicles.

Another option is to consider raising your deductible or adjusting your coverage limits, provided you maintain at least the minimum coverage required by your state. However, be cautious not to reduce your coverage to the point where you would face substantial out-of-pocket expenses in the event of an accident for which you are responsible.

While it’s true that car insurance rates can increase after an accident, the impact is typically greater for at-fault accidents. If you’re involved in an accident that wasn’t your fault, your rates may temporarily increase, but they should return to normal once the claim is settled.

Remember, every situation is unique, and the specifics of the accident and your insurance policy will ultimately determine the impact on your rates. If you have questions or concerns about your insurance rates after an accident, it’s always a good idea to speak with your insurance provider.

Call Our Experienced Las Vegas Accident Lawyers

Navigating the legal process after a car accident is stressful. Our Las Vegas Injury Lawyers are here to help you get the full compensation you deserve. Contact us today at 702-945-0625 for a free case review.

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