ABA Family Legal Guide

Automobiles

Accidents and Insurance

Insurance

Will my insurance premium automatically increase if I have an accident?

Not necessarily. If the insurance carrier has to dole out $300 to $500 or more in claims, you are likely to see a premium increase. If you have been accident free for the previous three years, the surcharge, if any, might still be less than your costs to pay for the repairs out of pocket. If you are on your third accident and just getting warmed up, prepare yourself for a 20 to 50 percent premium hike.