Does a Hit and Run Affect Insurance? The Unvarnished Truth

Yes, a hit and run absolutely affects your insurance, and often in ways that aren’t exactly pleasant. It’s a situation no driver wants to find themselves in, but understanding the potential insurance ramifications is crucial. The impact on your premiums, coverage options, and even your driving record can be significant. Let’s delve deep into the intricacies of hit and run incidents and how they intertwine with the world of insurance.

Understanding the Immediate Aftermath of a Hit and Run

A hit and run, by definition, involves a driver causing damage to another vehicle or property and then fleeing the scene without providing their information. This immediately introduces complications. Unlike a standard accident where both parties exchange details and insurance information, you’re left to navigate the aftermath largely on your own. The first step, of course, is to report the incident to the police. This creates an official record and is almost always a requirement for filing an insurance claim.

Documenting the Damage

Before doing anything else, thoroughly document the damage. Take photographs and videos of everything: the damage to your vehicle, the surrounding area, and any debris left behind. The more evidence you collect, the stronger your case will be when dealing with your insurance company.

Filing a Police Report

A police report is essential. It serves as objective documentation of the incident and gives your insurance company a basis to start their investigation. Provide the police with as much information as possible, even seemingly insignificant details. For example, the color of the fleeing vehicle, a partial license plate number, or the make and model of the car can all be valuable clues.

How Your Insurance Policy Responds

The way your insurance policy responds to a hit and run largely depends on the coverage you have in place. Let’s break down the common types of coverage and how they typically apply.

Uninsured Motorist Property Damage (UMPD)

In many states, Uninsured Motorist Property Damage (UMPD) coverage is specifically designed to address hit and run situations where the at-fault driver is unidentified. If you have UMPD, it will help cover the costs of repairing or replacing your vehicle, up to your policy limits, similar to how collision coverage would work.

Collision Coverage

If you don’t have UMPD, collision coverage is your next best bet. Collision coverage applies regardless of who is at fault in an accident. This means that even though the other driver fled the scene, your collision coverage will kick in to cover the damages to your vehicle. However, it’s important to remember that collision coverage usually comes with a deductible.

Comprehensive Coverage

Comprehensive coverage typically covers damages that are not caused by a collision, such as theft, vandalism, fire, or natural disasters. While it usually won’t cover direct damage from a hit and run collision itself, it might cover related damage, such as if the hit and run led to vandalism or theft from your vehicle.

Liability Coverage

Unfortunately, liability coverage typically won’t help you in a hit and run situation where you are the victim. Liability coverage is designed to protect you if you are at fault in an accident and cause damage to another person or their property.

The Dreaded Deductible

As mentioned earlier, if you’re using collision coverage, you will almost certainly be responsible for paying your deductible. This is the amount you pay out-of-pocket before your insurance company starts covering the remaining costs. The deductible amount is predetermined when you purchase your policy. This can feel particularly frustrating when you are not at fault, but it is a standard component of using collision coverage.

The Impact on Your Insurance Rates

This is where things can get tricky. Even though you weren’t at fault in the hit and run, filing a claim can potentially lead to an increase in your insurance rates. Insurers often view drivers who have filed claims, regardless of fault, as being a higher risk. The rationale is that drivers in areas with higher accident rates (even hit and run accidents) are statistically more likely to be involved in future incidents. However, the specific impact on your rates will vary depending on your insurance company, your state laws, and your overall driving record.

No-Fault Accidents and Premium Increases

Many states have regulations in place to prevent insurance companies from raising rates after a no-fault accident, such as a hit and run where you were not responsible. Be sure to familiarize yourself with the specific laws in your state.

Shopping Around for Better Rates

Regardless of whether your rates increase, it’s always a good idea to shop around for different insurance quotes after filing a claim. Other insurance companies may offer you a better rate, especially if you have a clean driving record aside from the hit and run incident.

Minimizing the Negative Effects

While you can’t undo the hit and run, you can take steps to minimize the potential negative impact on your insurance.

Be a Safe Driver

This sounds obvious, but maintaining a clean driving record is the best way to protect your insurance rates in the long run. Avoid speeding tickets, traffic violations, and other accidents.

Increase Your Deductible

Consider increasing your deductible. A higher deductible will lower your monthly premiums, but it also means you’ll have to pay more out-of-pocket if you ever need to file a claim. This can be a good option if you are a very safe driver and confident in your ability to avoid accidents.

Maintain Adequate Coverage

Make sure you have adequate insurance coverage in place, including UMPD and collision coverage, if possible. While it may cost more in premiums upfront, it can save you a lot of money and hassle in the event of a hit and run.

Frequently Asked Questions (FAQs) About Hit and Runs and Insurance

Here are some frequently asked questions that will give you more clarity about the impact of hit and runs on your insurance.

1. What happens if I don’t report the hit and run to the police?

Failing to report a hit and run to the police can jeopardize your ability to file an insurance claim. Most insurance companies require a police report as part of the claims process. Furthermore, in many jurisdictions, failing to report an accident is illegal.

2. Will my insurance company help me find the driver who hit me?

Your insurance company may conduct an investigation to try and identify the at-fault driver, but their resources are often limited. The police are usually better equipped to handle this type of investigation.

3. If the hit and run driver is found, will I get my deductible back?

If the at-fault driver is identified and their insurance company accepts liability for the accident, you may be able to recover your deductible from their insurance company. This process typically involves filing a claim with their insurance company.

4. Does a hit and run count as a chargeable accident on my driving record?

In most cases, a hit and run where you were the victim will not count as a chargeable accident on your driving record. However, this can vary depending on your state’s laws and your insurance company’s policies.

5. Can my insurance company drop me after a hit and run claim?

While it’s not common, your insurance company could potentially drop you after filing a hit and run claim, especially if you have a history of other claims or traffic violations.

6. What if I only have liability insurance?

If you only have liability insurance, your insurance policy will not cover the damages to your vehicle in a hit and run situation. You will be responsible for paying for the repairs out of pocket.

7. Is it worth filing a claim for a small amount of damage?

This is a judgment call. Consider the amount of damage, your deductible, and the potential impact on your insurance rates. It might not be worth filing a claim for minor damage if the cost of repairs is close to your deductible.

8. Can I use my uninsured motorist coverage even if I don’t know for sure the other driver was uninsured?

Yes, uninsured motorist coverage can apply in hit and run situations where the at-fault driver is unidentified. The fact that the driver fled the scene implies that they may be uninsured or unwilling to provide their information.

9. What if I was partially at fault in the hit and run?

If you were partially at fault, your insurance coverage and liability may be affected. The insurance company will investigate the accident to determine the degree of fault for each driver.

10. How long do I have to file a claim after a hit and run?

The timeframe for filing a claim after a hit and run varies depending on your insurance policy and your state’s laws. However, it’s generally best to file a claim as soon as possible after the incident to avoid any complications.

11. What if the hit and run occurred on private property?

Even if the hit and run occurred on private property, such as a parking lot, it’s still important to report the incident to the police and your insurance company. The same insurance coverage rules generally apply.

12. Are there any legal consequences for the driver who committed the hit and run?

Yes, committing a hit and run is a serious offense with potential legal consequences, including fines, license suspension, and even jail time, depending on the severity of the damage and injuries involved.