If you cross your eyes, they’ll stay that way.
If you crack your knuckles, it will cause arthritis.
We grow up hearing all sorts of myths. As adults, we like to think we’re wiser, but some misconceptions stick around. One of the most common? The belief is that filing an insurance claim—even for a collision that wasn’t your fault—will automatically make your rates go up.
The truth is, while filing a claim could impact your insurance premiums, it’s not always the case. Here’s why you shouldn’t be afraid to file a claim for a car crash that wasn’t your fault:
1. Insurance Rates Are Based on Multiple Factors
Insurance companies determine rates based on the likelihood of future claims, not just past collisions. While they don’t reveal the exact formula, these are some things that usually affect your rate:
- Your location
- How frequently you drive
- Your credit score
- Your overall driving history
A single claim for a collision you didn’t cause is not necessarily a red flag that will result in increased premiums.
2. Not All Accidents Are Treated the Same
There’s a significant difference between an at-fault collision and one where another driver is to blame. Most insurers won’t penalize you for someone else’s mistake if you have a clean driving record and aren’t responsible for the crash. Some states even have laws preventing insurers from increasing rates for not-at-fault collisions.
3. The Other Driver’s Insurance May Not Be Enough
Even if the other driver is at fault, their insurance coverage may not fully cover your damages. Consider these statistics:
- According to the Insurance Research Council, 1 in 8 drivers in the U.S. are uninsured.
- Many insured drivers only carry the minimum required coverage, which may not fully cover your damages.
- Your own uninsured motorist (UM) or underinsured motorist (UIM) coverage can help pay for damages if you are hit by a driver who doesn’t have insurance or doesn’t have enough insurance.
4. Your Insurance May Offer Higher Quality Repairs
If you rely solely on the at-fault driver’s insurance, you are considered a third party, meaning you have limited control over the claims process. However, if you use your own insurance:
- You may have access to preferred repair shops with higher-quality service.
- In some states, like Indiana, insurers must honor requests for original manufacturer’s parts instead of aftermarket replacements.
- Your own insurer will advocate for you, whereas the other driver’s insurer has no obligation beyond paying the minimum owed.
5. Paying Out-of-Pocket Could Cost You More In the Long Run
Some drivers hesitate to file claims because they worry about premium increases. However, paying out-of-pocket can often be a bigger financial burden. Consider this:
- Insurance premiums naturally change over time, but a single claim for a collision you didn’t cause is unlikely to cause a drastic increase.
- Consider this: If you file a $5,000 claim and your premium rises by $200 per year, it would take 25 years for those increases to exceed the cost of the repair.
- Filing a claim can allow you to spread out the financial impact of a crash rather than paying large sums upfront for repairs or medical bills.
Final Thoughts
Insurance laws vary by state, so if you’re involved in a collision, consulting a local attorney is always a smart move. While the at-fault driver’s insurance should cover most, if not all, of your damages, gaps in coverage can occur. Don’t let the fear of a possible rate increase stop you from using the insurance protection you’ve paid for—after all, that’s what insurance is for!
And while we’re on the subject of myths—no, swallowing gum won’t really take seven years to digest.
If you’ve been injured in a collision, Johnson Jensen is here for you when you’re ready. Call 317.785.7574 or fill out our online form here: https://johnsonjensen.com/contact.