Accidents almost always make your insurance rates increase.  Whether or not the accident was your fault, your insurance company may have to pay for your involvement in it.  If you were the one at fault, you will more than likely have an increase in your premium, because the accident will get rated against you and your coverage(s).  If you were not at fault, you may not have a premium increase.  This is up to your insurance carrier and their policies. 

When you are involved in an accident, your insurance company may have to pay for your claim - even if the accident was not your fault. These types of coverage - Personal Injury Protection, Medical Protection, Uninsured Motorist, and Collision - will cover you and the people in your vehicle when the accident is not your fault.

If you are at fault for the accident, theses types of coverage - Personal Injury Protection, Property Damage Liability, Bodily Injury Liability, Medical Payments, Collision, and Other than collision - will help cover you, the people in your vehicle, your vehicle, the other party, and the other's party's property.

If you did not carry enough insurance at the time of your accident, you may now be required to carry more insurance.  Carrying more insurance means higher premiums.  Some companies may not want to offer you insurance coverage at all after you report an accident.

If you are 'at fault' for the accident, your rates may increase for the following reasons.  Your current premium on your insurance coverage will reflect the charge for this accident. Insurance companies usually charge 'points' to your policy at its renewal.  Depending on the insurance company, these points will be charged to your policies for three, five, or even seven years.

The next more expensive rate will be if your state requires that you carry an SR-22.  You will need to carry this form, and any other required coverage, if you did not have enough insurance at the time of the accident. Getting an SR-22 will result in more expense and more inconvenience by having to get it taken care of.

You will need to carry this form and its required coverage for three years - whether or NOT you own a vehicle. There are some insurance companies who do not write SR-22 policies. To make sure you are carrying enough insurance and to avoid needing this form and its required coverages, contact your state's Department of Motor Vehicles.

Another way an accident can increase your rates is because of supply and demand. When the supply is high and the demand is low, the result is a low rate.  Conversely, when the supply is low and the demand is high the result is a high rate. This idea ties into car insurance. When you are at-fault in an accident, there are some companies who will not insure you. Therefore, if you lose some of the supply of insurance companies, you increased your demand.  As a result, your rate is higher.  Remember, some insurance companies will not write SR-22 policies.  This continues to lower your supply of insurance companies and further increases your demand, leading to even a higher possibility of increased insurance rates.  When you add the insurance 'points' to the equation, you can see how expensive an accident can really be.

Take preventative measures to avoid accidents.  Avoid distractions, be aware of your surroundings, and try  not to drive in bad  weather conditions if it is at all preventable.  All in all, just be careful! 

Disclaimer: This article is for information purposes. It should not be interpreted as a recommendation to buy or sell any insurance product, or to provide financial or legal advice. This information is provided for information purposes only.