Will a Hit and Run Raise My Insurance?
Unequivocally, yes, a hit and run can raise your insurance rates, even if you weren’t at fault. The increase depends on numerous factors, including your insurance company, state laws, and the specific circumstances of the incident. This is largely because insurance companies often view hit-and-run claims as risk indicators, irrespective of fault.
Navigating the Aftermath of a Hit and Run: Understanding Insurance Implications
Being involved in a hit and run is a stressful experience. Beyond the immediate shock and potential damage to your vehicle, the looming question of how it will affect your insurance rates can add considerable anxiety. Let’s delve into the intricacies of how a hit and run can impact your premium and what steps you can take to mitigate the fallout.
The Role of Uninsured Motorist Coverage
One of the most crucial aspects of dealing with a hit and run involves your Uninsured Motorist (UM) coverage. This coverage is designed to protect you when you’re involved in an accident with a driver who either doesn’t have insurance or, as in the case of a hit and run, cannot be identified. If you have UM coverage, it can help pay for your vehicle repairs and medical expenses, up to your policy limits.
However, filing a claim under your UM coverage, even for a hit and run where you were not at fault, can still lead to a rate increase. This seems unfair, but insurance companies often justify it by citing the increased risk they perceive in insuring you after such an incident. Their reasoning is based on statistical analysis suggesting that individuals involved in one accident, regardless of fault, are more likely to be involved in future accidents.
The Fault Factor: Does It Really Matter?
While it logically seems that being the victim of a hit and run should shield you from a rate hike, the reality is often more complex. Insurance companies primarily assess risk based on claims history. Even if you’re clearly not at fault, the fact that you filed a claim triggers a review of your policy.
In some states, laws specifically prohibit insurance companies from raising rates after a not-at-fault accident. However, in many other states, they have the leeway to increase your premiums. The rationale is that you’re now considered a higher risk simply by virtue of having been involved in an incident requiring a claim payout.
The Severity of the Damage and Your Deductible
The extent of the damage to your vehicle and the amount of your deductible also play significant roles in determining whether your insurance rates will increase. If the damage is minor and you decide to pay for repairs out-of-pocket, avoiding filing a claim altogether, you can potentially sidestep a rate increase.
However, if the damage is substantial, requiring extensive repairs or even a total loss, filing a claim becomes almost unavoidable. In such cases, your insurance company will likely pay out a significant sum, increasing the likelihood of a rate hike upon renewal. Your deductible is the amount you agree to pay out-of-pocket before your insurance coverage kicks in. A higher deductible usually translates to lower premiums, but it also means you’ll bear a larger portion of the financial burden in case of an accident.
Mitigation Strategies: What You Can Do
While you can’t rewind time and prevent the hit and run from happening, there are steps you can take to potentially mitigate the impact on your insurance rates:
Report the Incident Immediately: Contact the police as soon as possible after the hit and run. A police report provides official documentation of the incident, which can be crucial when filing a claim with your insurance company.
Gather Evidence: Collect any available evidence at the scene, such as photographs of the damage, witness statements, and any potential clues about the other vehicle involved (e.g., pieces of broken headlight, paint chips).
Compare Quotes: Shop around for insurance quotes from different companies. Rates vary significantly from insurer to insurer, so it’s wise to explore your options.
Consider a Higher Deductible: If you can afford it, increasing your deductible might result in lower premiums, offsetting the potential rate increase from the hit and run claim.
Maintain a Clean Driving Record: A clean driving record with no prior accidents or traffic violations can strengthen your position when negotiating with your insurance company.
Consult with an Attorney: In complex cases, especially those involving serious injuries or substantial property damage, consulting with an attorney specializing in car accidents can provide valuable guidance and protect your rights.
The Long-Term Perspective: Rebuilding Your Insurance Profile
Even if your insurance rates increase after a hit and run, it’s important to remember that this increase is typically temporary. As time passes without any further incidents, your insurance rates will gradually decrease. Maintaining a clean driving record and demonstrating responsible driving habits will eventually restore your insurance profile to a favorable position.
Frequently Asked Questions (FAQs)
1. What is Uninsured Motorist Property Damage (UMPD) coverage?
UMPD coverage specifically pays for damage to your vehicle caused by an uninsured driver or a hit-and-run driver. It’s often a separate coverage from Uninsured Motorist Bodily Injury (UMBI) and may have different limits and deductibles.
2. Will my rates go up even if the police find the at-fault driver?
Even if the at-fault driver is found and their insurance covers the damages, your rates could still increase. Some insurers view any involvement in an accident, regardless of fault, as an increased risk. However, if the other driver’s insurance pays out completely, the impact on your rates should be less significant than if your own UM coverage were used.
3. How long will a hit and run affect my insurance rates?
The impact typically lasts for 3 to 5 years. Insurance companies usually look back at your claims history for this period when determining your rates.
4. Should I file a claim even if the damage is minor?
This is a judgment call. If the damage is truly minor and you can afford to pay for repairs out-of-pocket, avoiding a claim might be the best option to prevent a potential rate increase. Get repair estimates first and weigh them against your deductible and potential premium increase.
5. What if I only have liability insurance?
Liability insurance only covers damages you cause to others. If you only have liability insurance and are the victim of a hit and run, you will likely have to pay for your vehicle repairs yourself unless the at-fault driver is found and their insurance covers the damages.
6. Can my insurance company cancel my policy after a hit and run?
It’s possible, but less likely if you weren’t at fault. Insurance companies can cancel policies for various reasons, including a significant increase in risk. If you file multiple claims in a short period, even not-at-fault claims, your insurer might consider you a higher risk and choose to cancel your policy.
7. Does a hit and run affect my credit score?
Generally, no, a hit and run itself won’t directly affect your credit score. However, if you fail to pay for repairs or medical bills resulting from the accident, and those debts go to collections, it could negatively impact your credit score.
8. What if I was injured in the hit and run?
If you sustained injuries, you should seek medical attention immediately. Your Uninsured Motorist Bodily Injury (UMBI) coverage can help pay for your medical expenses, lost wages, and pain and suffering. It’s also crucial to consult with a personal injury attorney to protect your rights.
9. Are there any exceptions where my rates won’t go up?
Some states have laws prohibiting insurance companies from raising rates after a not-at-fault accident. Check your state’s specific regulations. Also, if you have accident forgiveness coverage, it might protect you from a rate increase after your first accident, even if it involves a hit and run.
10. What is accident forgiveness coverage?
Accident forgiveness is an optional coverage that prevents your insurance rates from increasing after your first at-fault accident. Not all insurance companies offer this coverage, and it may come with certain eligibility requirements.
11. What should I do if I disagree with my insurance company’s decision?
If you disagree with your insurance company’s decision regarding your claim or rate increase, you have the right to file an appeal. You can also contact your state’s insurance regulator for assistance.
12. How can I find a good insurance company after a hit and run?
Research and compare quotes from multiple insurance companies. Look for companies with good customer service, competitive rates, and a solid reputation for handling claims fairly. Online reviews and ratings can be helpful in making your decision.
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