A single car accident can significantly impact your insurance rates, leading to high premiums that may last for years. This is particularly true in Montana, where the insurance system works on a fault-based principle. Under this system, the driver deemed responsible for the crash must cover the resulting damages and injuries.
Insurance providers reassess a driver’s risk profile based on their involvement in an accident, regardless of severity. If you are found at fault, you can expect your insurance rates to increase more substantially than if you were not responsible for the collision.
How much do insurance premiums go up after an accident?
On average, Montana drivers pay about $1,709 annually for car insurance. This rate can jump to approximately $2,456 after an accident – a staggering 43.76% increase.
Insurance companies justify this sharp rise by classifying you as a higher-risk driver after an accident. This perceived increase in risk translates directly to higher premiums for you.
How long will a car crash affect my insurance premium?
The duration of a car accident’s impact on your premiums largely depends on the severity of the crash. If you find yourself involved in a minor collision with minimal property damage and no significant injuries, you can expect this to affect your record for about three years.
However, if you are unfortunate enough to be in a major accident, particularly one involving serious injuries or a DUI, the consequences may remain on your driving record for up to a decade.
Finding your financial footing after a car accident
A car accident can be a stressful experience. The financial implications can even add another layer of concern, especially if the collission caused significant damages and injuries. As you move forward, focus on the aspects you can control: driving safely and staying informed about your insurance options and the factors that can influence your premiums.
