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car insuranceWhen you’re involved in a car accident in Los Angeles, it’s natural to worry about the immediate physical injuries and damage to your vehicle. However, another concern that often comes into play after the dust has settled is how this incident will affect your car insurance premiums. Understanding the impact of car accidents on insurance costs is crucial for anyone who drives.

Understanding Insurance Premiums

First, let’s break down what insurance premiums are. Simply put, your insurance premium is the amount you pay to your insurance company to keep your policy active. This could be paid monthly, every six months, or annually. The price you pay is determined by many factors, including your driving history, where you live, and the type of car you drive.

Why Do Premiums Go Up After an Accident?

After a car accident, you might notice an increase in your insurance premiums. This is because insurance companies view drivers who have been in accidents as higher risks. Essentially, if you’ve been in an accident, your insurance provider might think it’s more likely you could be in another one, leading to more claims they have to pay. This risk assessment directly influences how much you’re charged for your insurance.

Factors That Influence the Impact

Not all accidents result in higher premiums. Insurance companies consider several factors before raising your rates. These include:

  • Who was at fault? If you were not at fault in the accident, your premiums might not increase. However, if you were at fault, especially if it resulted in significant damage or injuries, expect your rates to go up.
  • Your driving records. If this is your first accident and you have a history of safe driving, the impact on your premiums may be less severe.
  • The severity of the accident. Minor accidents, especially those without injuries, may have a smaller impact on your premiums than major collisions.

How Much Can Premiums Increase?

The amount your insurance premium may increase after an accident varies widely. In Los Angeles, where traffic accidents are relatively common due to heavy traffic and congestion, you might see a more significant hike in your rates. On average, drivers can expect anywhere from a 20% to 40% increase in their premiums after an at-fault accident. However, this is just a general range, and the actual increase will depend on your specific circumstances.

What You Can Do About It

If you’re facing higher premiums after an accident, there are steps you can take to try and reduce your rates. These include:

  • Shopping around. Don’t settle for the first insurance quote you receive. Compare rates from different insurance companies to find the best deal.
  • Taking a defensive driving course. Some insurance companies offer discounts for drivers who complete an approved defensive driving course.
  • Increasing your deductible. Agreeing to pay a higher deductible in the event of a claim can lower your premiums, but be sure you can afford the higher out-of-pocket cost if you have another accident.

The Long-Term View

While an increase in your insurance premiums can be frustrating, it’s important to remember that this effect isn’t permanent. Typically, accidents affect your insurance rates for three to five years. Maintaining a clean driving record after an accident can help your premiums to decrease over time.

Contact Los Angeles Car Accident Lawyer

teamIf you’ve been injured in a car accident in Los Angeles, it’s also essential to consider the legal side of things. Dealing with insurance companies can be challenging, especially when trying to recover compensation for your injuries, vehicle damage, and increased insurance premiums. In these situations, having an experienced personal injury attorney on your side can make a significant difference.

For those affected, contact Law Offices of Samer Habbas & Associates, PC by calling 678-940-1444 or contacting us online for a consultation with an experienced car accident attorney. We understand the challenges you’re facing and are here to help guide you through the legal process.

Samer Habbas is a California attorney with over 18 years of experience in personal injury law. Throughout his career, he has successfully recovered over $300 million for his clients, solidifying his reputation as a leading advocate in the field.

Samer swiftly gained recognition for his adept negotiation skills and unwavering dedication to his clients. His practice spans a wide range of personal injury cases, including car accidents, dog bites, funeral home abuse, premises liability, and wrongful death.

Samer is known for his compassionate approach and commitment to securing favorable outcomes for his clients. His expertise has earned him the trust and respect of both his clients and his peers within the legal community. He is also deeply invested in giving back to his community. He actively participates in pro bono work and volunteers his time to various charitable organizations. Samer is a champion for those who have been wronged, leveraging his extensive experience and expertise to make a meaningful difference in the lives of his clients and his community.