Not at Fault? Why Your Insurance Still Got Higher

by | Mar 29, 2025 | Blog, Insurance | 0 comments

You were in a car accident that wasn’t your fault. The other driver admitted it. Their insurance paid for the damage. So why did your own auto insurance rates go up?

It’s a question we hear often, and it’s understandably frustrating. After all, if you didn’t cause the accident, why should you be financially penalized?

Let’s dig into the reasons this happens—and what you can do about it.

1. Not-at-Fault Accidents Still Make You Statistically Riskier

Insurance companies rely on data to assess risk. And statistically, drivers who have been involved in any kind of accident—fault or no fault—are more likely to file another claim in the future.

It’s not about blame. It’s about likelihood.

 

Real-Life Example:
Sarah was stopped at a red light when she got rear-ended. The other driver’s insurance paid for her car repairs and rental. Six months later, Sarah’s renewal premium increased by $15 per month. Her insurer explained that while she wasn’t at fault, the claim still marked her as higher risk.

 

2. Claim History Affects Your Profile—Even If You Didn’t Cause the Accident

When you file or are involved in a claim, it becomes part of your insurance history. That history can impact future premiums, especially if you’ve had multiple claims or traffic violations in the past.

 

Real-Life Example:
James was sideswiped while parked. The at-fault driver’s policy covered everything, but the incident still appeared on his CLUE report (Comprehensive Loss Underwriting Exchange). At renewal, his rate jumped by $120 a year—despite not being at fault.

 

3. State Laws and Insurance Companies Handle These Differently

Some states don’t allow insurance companies to increase your rates for not-at-fault accidents. Others do. And even in states that offer protections, insurance companies may still use your overall claims history to adjust your rate.

 

Real-Life Example:
Maria lives in California, where insurers can’t raise premiums for not-at-fault accidents. Her rates stayed the same after a drunk driver hit her car. But her sister Elena, in Texas, saw her premium increase after she was t-boned—despite the other driver being fully at fault.

 

4. Partial Fault Can Still Impact Your Premium

In some cases, you might be found partially at fault—even if you didn’t realize it. States with comparative negligence laws may assign a percentage of fault to each driver involved. If your insurance company had to pay anything, you could see a rate increase.

 

Real-Life Example:
Rob was hit by a driver who ran a red light. But video footage showed Rob was speeding at the time. He was assigned 20% fault. Since his insurer had to cover part of the damages, his premium increased at renewal.

 

5. Even Small Claims—Like Windshield Repairs—Can Add Up

Comprehensive claims for things like chipped windshields or glass replacements might seem harmless. But repeated claims—even small ones—can impact how your risk is viewed by your insurer.

 

Real-Life Example:
Nina filed a claim to replace her cracked windshield after a rock struck it on the highway. A few months later, she was rear-ended in a parking lot. Even though neither incident was her fault, her premium went up by $96 per year. Her agent explained that multiple claims, even minor ones, can increase risk ratings.

 

What Can You Do to Protect Yourself?

While you can’t always control what happens on the road, there are a few smart ways to protect your insurance rates:

  • Talk to your agent: Ask how your company handles not-at-fault and small claims.
  • Consider paying out-of-pocket: For minor glass damage or cosmetic repairs, it may make sense not to file.
  • Look into accident forgiveness: Some companies offer programs to keep your first claim from impacting your rates.
  • Compare quotes: Not all insurers treat claims the same way. If your premium jumps, it’s worth shopping around.
  • Keep your record clean: Safe driving and no claims = long-term savings.

Final Thoughts

We get it—seeing your insurance premium go up after an accident you didn’t cause feels unfair. But understanding how and why insurers make these decisions can help you stay ahead of future rate hikes.

 

Want to know if your current rate still makes sense after a claim?
We’ll review your coverage, explain what’s impacting your rate, and help you find the best value—without any pressure.

 

Call us today or click here to request a quick quote. Let’s make sure your policy works for you, not against you.