How a Hit and Run Incident Can Impact Your Insurance Premium
Have you ever faced an incident where your parked car was damaged by a hit and run? It's not uncommon, and unfortunately, it can have significant consequences for your insurance premiums. Although you may be the victim, the insurance company may still see this as an opportunity to increase your premium. This article will explore the impact of a hit and run accident on your insurance, and what steps you can take to protect yourself.
Understanding the Impact on Your Insurance Premium
It is a well-known fact that almost 90% of the time, your insurance premium may go up after such an incident, even if it wasn't your fault. Insurance companies will look for any reason to raise premiums, and they often use such incidents as leverage. For instance, a hit and run can be used to argue that you're a risky driver, possibly because you park your car in a way that makes it harder for others to back up without damaging it. However, this is often seen as a scapegoat rather than the actual cause of the accident.
When a hit and run occurs, the insurance company may try to get the offender's insurance to cover the damage. If this fails, they may try to claim that you were at fault, even if evidence suggests otherwise. In my own experience, a hit and run occurred a month ago, and the insurance company initially wanted to pursue their own insurance. However, I had to show them on the internet to prove that not only would my premium go up but my insurance might also be canceled. This was done for two reasons:
To avoid engaging with the insurance company, as most likely both premiums would go up. To protect myself from false claims that I was at fault, which could have a lasting impact on my insurance.After presenting this evidence, the offender eventually decided to pay for the damage because it was cheaper than the increased premium he would face.
Know Your Rights and Options
It's important to understand what you can do when faced with a hit and run incident. You have one forgiveness, and it's often a good idea to use it for more substantial issues. If a minor scratch occurs, consider paying for it yourself. Sometimes, insurance companies advertise first accident forgiveness, but the impact of subsequent incidents can be significant, potentially making your insurance unaffordable.
Insurance Claims and Premium Increases
When you file a claim with your insurance company, the underwriter assigned to your renewal may consider you a higher risk, leading to a premium increase. This depends on your insurance contract, rates, and any additional endorsements you might have, such as accident forgiveness. Some companies may waive the first at-fault accident if you have a five-year claim-free period. However, typically, an at-fault accident may result in the loss of a discount or the imposition of an accident surcharge if it occurs within the current three to five-year period.
Understanding these factors and taking proactive steps can help you manage the financial impact of a hit and run or any other insurance-related incident. By being informed and strategic, you can protect your financial well-being and ensure that your insurance remains affordable and effective.