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Most Insurance Companies Don’t Care It’s Not Your Fault – You’ll Still Have to Pay

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Enduring a car accident, no matter how small, is still nightmarish for most motorists. Even if your car and your car accident buddy’s car are unharmed, your mental, emotional, and financial health can suffer.

“Safe drivers who are in accidents caused by others often see auto insurance rate hikes,” according to a study by the Consumer Federation of America (CFA).

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The study evaluated five of the biggest automotive insurance companies in the U.S. in 10 cities, and concluded that “drivers in New York City and Baltimore pay out the most for doing nothing wrong.” Also on the hook for paying for other people’s mistakes are drivers in Kansas City and Chicago, who “face average increases of 10% or more when another driver crashes into them.”

But there is good news for drivers in California and Oklahoma. According to the CFA, if you are a driver in these states and you’re involved in an accident, as long as it is not your fault, your insurance costs should remain the same.

“Innocent drivers who don’t cause accidents should not be charged more because someone else hit them,” said J. Robert Hunter, CFA’s Director of Insurance and the former Insurance Commissioner of Texas. “Most people know that if they cause an accident or get a ticket they could face a premium increase, but they don’t expect to be punished if a reckless driver careens into them.”

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To better prepare and protect yourself from this potentially expensive situation, the CFA encourages you to inquire if your insurance rates will increase if you’re involved in an accident that isn’t your fault, complain if this is your insurance company’s policy, and to contact your state’s insurance department about this “unfair practice.”

News Source: Consumer Federation of America (CFA)