Why Does Car Insurance Go Up When You Get Into Accident?
Your car insurance goes up when you get into an accident because your insurance company has to not only pay for the damage you caused but also has to consider the higher risk you now present as you are likely to get into another accident.
For example if you get into an accident that costs the insurance company, $12,000 and your yearly premium is $1,000 it would take you 12 years with the insurance company for you to essentially “pay them back”. When you get into an accident and on renewal they increase your premium to say $1,500 it would take 8 years for your insurer to recoup. Therefore your insurer has to increase your premiums when you are involved in an accident.
Keep in mind that depending on your state your car insurance increases only when you are deemed at-fault for the accident. Go here to Learn more about how an accident affects your car insurance.
