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How Much Does Insurance Go Up After an Accident?

Published on Feb 13, 2020 at 2:43 pm in Car Accidents.

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Kentucky car insurance rates are already high. In 2019, they were reported to be 43.7% higher than the national average cost of insurance. But when you get into a car accident, your insurance rates will go up. So the already high rates will raise even higher.

Your insurance coverage is based on how well you drive. It makes sense that companies will charge you more after you get charged for driving poorly, like after a DUI or an at-fault car accident, because they will have to pay out more based on your bad driving. If you have concerns about how much your rate will go up after a wreck, keep reading to find out the average increase rate.

Insurance Rates After an Accident

After a car accident where you were at fault, you might already have a lot of other costs on your mind, like medical bills or paying for damages. Even worse, you have to think about the price of your insurance coverage after reporting the accident because your insurance provider will most likely increase your premium.

The average yearly premium for an adult driver in Kentucky is around $2,000 but raises to over $3,500 on average after an accident. NerdWallet reports that insurance rates in Kentucky raise by 79% when the policy-holder gets into an accident, making it the state with the third highest rate increase in the country.

When you weren’t at fault for the accident, your rate shouldn’t raise. But if you were at-fault, your rate will go up. According to The Zebra, an at-fault accident causing anywhere from $1,000 to over $2,000 will raise your rate about the same amount, and on average your premium will raise to be over $3,000.

It’s important to note that these rates are for adults. For teens, rates are much higher. In fact, Kentucky is the most expensive state to insure a teen driver, as their yearly rates are on average over $12,000. After an accident, a teen driver would be even more expensive to insure.

Kentucky Auto Insurance Laws

You might be wondering why Kentucky’s auto insurance yearly costs are higher than most states, and the answer is that our state has specific insurance laws that drive up prices because we require drivers to have more coverage.

We are considered a “no-fault” state, so your insurance will only cover your injury claims until a specified amount after a car wreck, and you can only sue the other driver if you incur $1,000 worth of medical bills, a broken bone, permanent disfigurement or injury, or death. According to state law, you are required at minimum to have liability coverage of:

  • $25,000 for bodily injury damages for one person in one accident
  • $50,000 for bodily injury damages for all people injured in one accident
  • $25,000 for property damage in one accident

You could also have a policy with a single limit of $60,000. If you are caught driving without insurance, you will have your vehicle registration revoked, be fined between $500 and $1,000, and could potentially spend up to 90 days in jail.

The amounts of coverage you are required to have are higher than most states. In other states, you could be required to have $10,000 to $20,000 less than Kentucky is required to have, so premium rates would be lower. Since we require such high amounts of liability insurance, your rates will be high even without a collision, and then will go even higher if you get into an accident.

Contact Golden Law Office After Your Lexington Car Accident

Car accidents can cause a lot of physical and emotional damage, and you might feel like nobody is on your side. An experienced Lexington car accident lawyer from Golden Law Office can ease your worries and support you through this hard time in your life. We will handle your claim with extreme care and fight for your best interests. Contact us today to see if you have a claim and talk about your legal options.

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