Will a Hit-and-Run Claim Increase Your Insurance Rates?

A hit-and-run accident takes place every 43 seconds in the USA. According to the statistics of the online insurance company autoinsurance.com, 1 in every 250 drivers in the U.S. is involved in a hit-and-run. 74% of these incidents involve damage to private property. The site further indicates that the primary perpetrators are males in the age group of 25 to 64.

A hit-and-run, without a doubt, is a very unpleasant occurrence. Stress, confusion, and financial issues will surely be among the consequences.

Will a hit-and-run claim raise your insurance rates? When you file a claim with your insurer, you first think about how it will affect your premiums. A hit-and-run claim might indeed be a reason for your insurance rates to go up, but such a case is more likely to happen when you were judged to be partially liable or if you are a habitual claimant. If you were not at fault, many insurers will not increase your premium.

The factors that determine insurance rates include fault, claims history, and state regulations. The impact of a hit-and-run claim can be different depending on your insurance and circumstances.

Insurance premiums may increase in certain scenarios so let us look at them one by one.

Understanding Hit-and-Run Accidents

Hit-and-run accidents are always accompanied by a range of intense emotions, misunderstandings, and annoyance, to name a few. The aftermath of the incident is such a complex scenario that just thinking about it can create a blend of confusion in one’s mind.

A hit-and-run incident refers to a car accident where the liable driver, instead of staying at the site and providing his or her details or even assisting the victim, simply speeds away. It is of utmost importance to collect every detail possible, like the other car’s license plate number and its make and model, getting the accounts of the witnesses, etc.

Receiving emotional support from relatives or companions can be a huge help and empower you during this difficult period. It will be necessary to collaborate with attorneys and other support organizations to manage the impact of the hit-and-run accident.

How Insurance Companies Handle Claims

Going through a hit-and-run incident is one of the worst situations that a person may have to face. Being knowledgeable about insurers’ processing of claims could slightly make the situation easier.

Substantiating your claim, the insurance company will ask for major documents, including police reports and witness testimony. They will need to assess the damage to your car and, if necessary, assign adjusters to determine repair costs.

According to car accident lawyer Luis P. Guerra, Esq., insurance adjusters often try to settle a claim as soon as possible for as little as possible. It is very rare for an insurance company to accept a full claim. Even in the case of a minor crash, the insurance company will typically try to make a settlement offer that is far less than what the victim actually deserves.

They will have lost all hope of getting the event’s facts straight and verifying your policy at the same time. Maintaining communication with your insurer is necessary since they might require more paperwork from you. 

Your insurance company will help you through the process and recover from the incident.

Factors Influencing Rate Increases

The increase in rates after making a claim for a hit-and-run is influenced by a number of things, especially since the insurance companies determine the extent of risk based on your driving history and the specifics of the case. 

If you have had previous claims or traffic violations, that will count negatively against you. The severity of the hit-and-run is also an important factor. If there was a lot of damage or injury involved, then the increase will be larger. 

Where you live also contributes to insurance rates. Insurance for cars in high-risk areas usually costs more. The insurer’s view of the situation, regardless of whether you acted correctly, can affect their ruling. You can use this knowledge to your advantage when processing your insurance claim.

Potential Financial Implications

It is very helpful to know the possible financial downsides of a claim, especially if it is going to cause a budget cut that is more than you are expecting. 

Insurance companies may raise your rates when you file a claim, resulting in higher monthly premiums that could strain your budget. If the accident was not your fault, insurers consider all claims to a certain extent as risky behavior. 

In case your deductible is quite high, you may have to pay more than what you had initially planned. If you are paying for other expenses at the same time, managing your bills may become more difficult.

Consider very carefully the impact that a hit-and-run claim would have on your budget and your future financial position.

Tips for Managing Your Insurance Premiums

Your insurance premiums could increase, amplifying the suffering of handling a hit-and-run claim. One way of getting a discount on your premiums can be by bundling your insurance policies together. 

Most of the time, this move will lead to significant savings, which will ease your financial burden. Never stop comparing all the available rates. Different insurers have different prices, and looking up rates from different companies will guarantee that you are entering a deal that benefits you the most.

Many businesses use credit scores as an important factor, so you can make it a habit to keep it high. You will avoid potential financial downsides if you check your policies often.