If you see a rate hike after a not-at-fault claim, it’s usually due to one of these three reasons.
1. Loss of a “Claims-Free” Discount
This is the most common and frustrating “hidden” rate hike.
Many drivers don’t realize their low premium includes a significant discount (often 10%–25%) for being “claims-free” or a “safe driver.” When you file any claim, your insurer often has the right to remove that discount at the next renewal.
Your base rate didn’t actually go up. Instead, a reward you previously qualified for was taken away. To your bank account, the result is the same: you’re paying more.
2. State Laws (The Biggest Factor)
Insurance is regulated at the state level, and the rules vary drastically.
- States That Prohibit It: Some states, like California and Oklahoma, have strong consumer protection laws that explicitly forbid insurance companies from raising your premium or surcharging you for an accident where you were not at fault. States like Florida and Washington also have specific protections against this.
- Most Other States: In the majority of states, insurers are legally permitted to raise rates after a not-at-fault accident, provided the increase is justified by their actuarial data (see the “Risk Profile” argument above) and approved by the state’s insurance commission. Different carriers treat this differently; some won’t raise your rates at all, while others will.
3. General Rate Increases (Bad Timing)
Sometimes, the rate increase has absolutely nothing to do with your specific accident. You may just be the victim of bad timing.
Premiums for everyone in your ZIP code may be rising because:
- Inflation: The costs of auto parts, paint, and labor have increased.
- Regional Risk: There have been more thefts, hailstorms, or accidents (caused by other people) in your area.
- Company Losses: The insurer had a bad year (e.g., paid out massive claims for a hurricane) and is raising rates across the board to recoup losses.
Your renewal letter arrived after your accident, making the claim seem like the cause, but the rate hike was already scheduled to happen.
What About Comprehensive and Uninsured Motorist Claims?
These claims are also technically “not-at-fault,” but they can impact your rates.
- Comprehensive Claim: This covers theft, vandalism, hitting a deer, hail, or a cracked windshield. Because these events are out of your control, a single comprehensive claim is very unlikely to raise your rates. However, filing multiple comprehensive claims in a short period (like three claims in three years) signals to the insurer that you are high-risk (perhaps you park in an unsafe area), which can trigger a rate increase.
- Uninsured/Underinsured Motorist (UM/UIM) Claim: This is when someone else is at fault, but they have no insurance (or not enough) to cover your damages. You have to file the claim on your own policy. Since your insurer is paying out money that it cannot get back (subrogate) from an at-fault party, this type of not-at-fault claim is more likely to trigger a risk re-evaluation or the loss of a claims-free discount.
What Can You Do About It?
- Ask Your Agent: If your rate goes up, call your insurer and ask for a direct explanation. Ask them to specify if this is a “surcharge,” a “loss of a discount,” or a “general rate increase.”
- Check for Accident Forgiveness: Review your policy. Some drivers pay extra for an “Accident Forgiveness” endorsement. However, be aware this feature usually only applies to your first AT-FAULT accident and may not protect your “claims-free” discount.
- Shop Around: This is your single best strategy. Insurance companies weigh risk differently. Insurer A might raise your rates 15% for a not-at-fault claim, while Insurer B (who is trying to attract safe drivers) won’t count it against you at all. The only way to know if you’re overpaying is to get quotes from other carrier