Car insurance companies typically have a monetary threshold that must be reached for accidents to be surcharged. If this is your first accident and you otherwise have a clean driving record, it’s possible it won’t affect your rates if the claims paid out are low enough.
But whether your rates will rise is purely up to the rating system of your current car insurance company, as governed by state laws. Ultimately, you’ll have to find out by asking your agent or looking at your insurer’s surcharge schedule.
In some states, it’s the state instead of the insurance company that decides the monetary threshold for a surcharge. For example, in New York, a surcharge isn’t permitted if the total damage by an accident is less than $2,000 and there were no injuries. However, if you have two or more accidents within three years, even if each is under $2,000, it can cause your rates to rise.
The fault also makes a difference to car insurance companies. If you didn’t receive a ticket, a single-car accident is likely to be considered your fault for losing control of the car – even though icy conditions were involved.
To get your car fixed using your car insurance, you must have collision coverage. If you only have liability coverage and not collision, you’ll have to pay out-of-pocket for all repairs to your vehicle.
If you hit a pole, wall, fence or some other object to damage the side of your vehicle and that object were damaged, you may find that the owner may place a claim against your property damage liability coverage.
Remember that collision insurance coverage comes with a deductible amount; thus, it’s recommended before filing a claim for your car’s damage, you get an estimate of the repair costs. You may find that it will cost less than your deductible amount; in that case, you don’t have to file a claim.
If your car’s repair costs exceed your deductible, make the collision claim since you need your car fixed.
Ask the Insurance Expert
Laura Longero
Executive Editor
Laura Longero is an insurance expert and Executive Editor at CarInsurance.com, where she specializes in helping consumers navigate the complexities of the financial and insurance industries. She has 15 years of experience educating people about finance and car insurance. Prior to joining CarInsurance.com, she worked as a reporter and editor at the USA Today Network. Her expertise provides readers with practical guidance, helping them make informed choices about their financial and insurance needs.
Ask the Insurance Expert
John McCormick
Editorial Director
John is the editorial director for CarInsurance.com, Insurance.com and Insure.com. Before joining QuinStreet, John was a deputy editor at The Wall Street Journal and had been an editor and reporter at a number of other media outlets where he covered insurance, personal finance, and technology.
Ask the Insurance Expert
Leslie Kasperowicz
Executive Editor
Leslie Kasperowicz is an insurance educator and content creation professional with nearly two decades of experience first directly in the insurance industry at Farmers Insurance and then as a writer, researcher, and educator for insurance shoppers writing for sites like ExpertInsuranceReviews.com and InsuranceHotline.com and managing content, now at CarInsurance.com.
Ask the Insurance Expert
Nupur Gambhir
Managing Editor
Nupur Gambhir is a content editor and licensed life, health, and disability insurance expert. She has extensive experience bringing brands to life and has built award-nominated campaigns for travel and tech. Her insurance expertise has been featured in Bloomberg News, Forbes Advisor, CNET, Fortune, Slate, Real Simple, Lifehacker, The Financial Gym, and the end-of-life planning service.