will a hit and run raise insurance

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Will a Hit and Run Raise My Car Insurance Rates?

Getting into a car accident is scary and stressful enough on its own. But when the other driver flees the scene without leaving their information, it adds insult to injury This hit and run scenario leaves you dealing with the aftermath and repairs on your own

Understandably your first thought after the shock wears off is likely “How will this affect my car insurance?” You may worry that your premiums will now skyrocket even though the accident wasn’t your fault. Unfortunately, that’s sometimes the case.

How Insurers View Hit and Runs

In the eyes of your insurance company, there are three parties involved in any accident:

  • You (the policyholder)
  • The other driver
  • Your vehicles

For a straightforward accident claim, the insurer can clearly assess damages and liability between the drivers and vehicles. But with a hit and run, the at-fault driver and their vehicle are missing from the equation.

Without having the ability to recover costs from the liable party, the insurer’s risk is higher. Some companies will pass this increased risk along to you in the form of higher premiums.

However, there are a few factors that determine if your rates will actually go up after a hit and run claim:

Factors That Influence Rate Hikes

1. State Laws

Insurance regulations vary widely by state. Some states restrict insurers from raising your rates if you file a claim for an accident that was clearly not your fault. These states mandate that insurance companies can only use “at-fault” claims when calculating your premium.

So if you live in one of these states and get hit by a hit and run driver, your rates may be protected from increasing. Check your state insurance department website to learn about your protections.

2. Your Insurer’s Guidelines

Every insurance carrier uses their own proprietary formulas to set rates. Some insurers only raise premiums based on at-fault accidents, while others factor in not-at-fault incidents too.

And an insurer may overlook a single not-at-fault claim, but start charging higher premiums if you file multiple no-fault claims over a short period. Check with your agent or insurer to learn about their specific guidelines.

3. Claim Payout Amount

Insurers view more expensive claims as higher risk. So if a hit and run incident causes extensive damage and injuries, requiring a large claim payout, you’re more likely to see a rate increase versus a minor fender bender.

4. Previous Claims

If the hit and run is your first claim with your current insurer, you may dodge a rate hike. But multiple claims on your record make you look riskier in the eyes of actuaries, so a hit and run could be the last straw that triggers a premium increase.

5. Deductible

Filing a claim under your collision coverage for a hit and run comes with a deductible, usually $500 to $1000. If the claim amount is only slightly more than your deductible, the insurer may not bother raising your rates since their payout was minimal.

6. Defensive Driving Discounts

Discounts for completing defensive driver courses show insurers you’re committed to safe driving habits. Retaining these discounts after a not-at-fault accident helps strengthen your case for keeping your rate unchanged.

How Much Could Rates Increase?

If your insurer does raise your premium due to a hit and run claim, how much extra can you expect to pay? There’s no simple answer, as many variables like your age, driving record, location and other factors impact the calculation. But in general, you could see increases of:

  • 10% to 20% for the first at-fault accident
  • 40% to 50% for subsequent at-fault accidents

Rate hikes after not-at-fault claims are usually less, around 5% to 15% per incident. But again, the specifics depend on your insurer and policy details. Some may not raise your rate at all for not-at-fault claims.

Will My Insurance Be Cancelled?

It’s highly unlikely your insurer would outright cancel your policy after just one not-at-fault hit and run claim. Policy cancellation is generally reserved for high-risk drivers with multiple at-fault accidents and serious violations. As long as you maintain a relatively clean driving record, you should be able to retain your coverage.

However, repeated hit and run claims on your policy could make your insurer non-renew your policy at your next renewal period. It’s their way of shedding high-risk customers who cost more money than they earn in premiums.

Tips to Avoid Rate Hikes

While you can’t control other drivers, there are some smart steps you can take to avoid landing in the insurer’s high-risk category after a hit and run:

  • Take defensive driving courses and maintain any discounts you earn.

  • Ask about accident forgiveness or one free accident from your insurer.

  • Remain loyal to your insurer for 5+ years to build goodwill.

  • Increase your deductible to lower your premiums.

  • Shop around for the best rates after any claim.

  • Inquire about discounts for multi-car or multi-policy bundles.

  • Improve your credit score to maintain a high insurance score.

  • Drive safely and avoid further accidents or violations.

Fight Back Against Unfair Rate Hikes

If your premium skyrockets after a not-at-fault hit and run accident, don’t accept it without questioning the increase. You have options to push back on the rate hike:

  • File a complaint with your state insurance commissioner if you feel the increase violates regulations.

  • Send a written complaint to your insurer to contest the rate change.

  • Provide evidence like police reports showing you weren’t liable.

  • Switch insurers and take your business elsewhere.

  • Negotiate discounts to offset the increase, like bundling policies.

No one expects to be the victim of a hit and run. While you can’t fully prevent the accident itself, arming yourself with the right insurance knowledge helps you avoid unfair rate hikes in the aftermath. Don’t hesitate to stand up for yourself with your insurer and seek out competitive quotes if needed. With a little perseverance, one chaotic hit and run doesn’t have to derail your insurance costs long-term.

Rates increased up to 12% this year.

Costs will continue to rise through 2022. Shop for a better rate before you renew your current policy.

Hit-and run laws in Florida

Hit-and-run drivers in Florida face harsh punishments if they break the law after an accident that causes property damage, injuries, or death. How bad the punishments are and what kind of charges are brought depend on how the accident turned out:

  • A second-degree misdemeanor charge with up to 60 days in jail and a $500 fine is all that goes along with property damage.
  • Damage: a second- or third-degree felony charge that could lead to up to five years in prison and a $5,000 fine
  • First-degree felony charge with four to thirty years in prison and a $10,000 fine for death

If you leave the scene of an accident involving either injuries or fatalities, you’ll also have your Florida driver’s license revoked for a minimum of three years. Hit-and-run charges in Florida with fatalities are subject to the Aaron Cohen Life Protection Act (Section 316.027 of the Florida Statutes), which mandates a minimum sentence of four years in prison for a hit-and-run accident involving the death of any person.

Do Hit And Runs Raise Your Insurance?

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