In many cases, if you’re not at fault for an accident, then your car insurance rates remain the same. Car insurance rates generally do not rise after a no-fault accident, even when there are serious damages and injuries involved. However, car insurance accident claims are typically not this straightforward.
In certain situations, the insurance company may try to assign fault to you or fail to fully compensate you. In these scenarios, the experienced Maison Law Accident & Injury Lawyers of Fremont can help. Contact us today for a no-cost, no-obligation consultation.
No-Fault Claims and Insurance Policies
It is important to know the facts of your insurance policy when it comes to no-fault car accident claims. Insurance policies differ across different insurance companies. For example, even if you were in an accident that wasn’t your fault an insurance company could have a policy that raises your rate for several different reasons. Examples of why an insurance company may raise your rate include:
- Your history of making claims
- The number of accidents you’ve been in
How Fault Works in a Car Insurance Claim in Fremont
In the event of a car accident, determining who is at fault will decide insurance payouts and premium adjustments. Insurance companies in California use the “comparative negligence” system to determine fault in an accident. Comparative negligence allows an injured party who shares fault for their injuries to receive compensation, a legal action covered by the Comparative Negligence Law. This law states:
“Under the pure comparative negligence rule, the state allows the plaintiff to claim damages for the 1% they are not at fault even when they are 99% at fault.”
So, if you were found not at fault for the accident, then the comparative negligence law does not apply. However, it is important to know that if you were partially at fault for an accident, then you are still entitled to recover compensation.
Does My Car Insurance Cover Other Drivers in California?
In most cases, California car insurance covers the car and not the driver. So, if let’s say you let someone drive your car and they get into an accident, your car insurance would cover repairs to your vehicle, but not the damages done to the person. While it is common for car insurance to cover damage done to the vehicle, there are specific scenarios where they may deny an accident claim. For example:
- Non-Permissive Use: if a person uses someone else’s car without permission and they get into an accident, the car owner’s insurance may not cover damages, depending on their insurance policy.
- Commercial Activities: if a vehicle is used for commercial purposes, such as ridesharing, maintenance, or deliveries, a personal car insurance policy may not provide coverage. The driver would need to elicit a commercial auto policy or rideshare insurance.
- Rental Cars: when a car is rented, then the rental company’s insurance will typically provide them with coverage. However, the driver can opt for additional insurance for rental cars through their own insurance policy.
Do I Need to Report a “Minor” Car Accident in California?
One mistake accident victims commonly make when getting into a minor “fender bender” is failing to report the accident to their insurance. In minor accidents, drivers may be tempted to let the accident slide and not report it. The logic is that an insurance company can’t raise rates for an accident they never knew about.
This decision can work against accident victims, even if they were not at fault for the accident to begin with. The other party involved could make the decision to file a lawsuit against you. And if your insurer finds out you failed to immediately report an accident to them, they do not have to honor your policy with them. The end result would be you having to pay every bill without the help of insurance, costing you more than if your rates went up.
Alternative Ways to Reduce Your Insurance Rate
There are practical ways to reduce your insurance policy if taking legal action is no longer an option. The following are simple ways to reduce your insurance rates if they’ve gone up after an accident:
- Look for a new policy: if you’re unsatisfied with the high rate of your insurance, you are allowed to explore the marketplace and find a better insurance policy. It is important to note that while pricing is a factor when it comes to selecting car insurance, you should also consider the best coverage. Ask friends and family for insurance recommendations and research your options.
- Enroll in a driving course: many insurers lower rates for individuals who have completed a defensive driving course. You can obtain a discount on your insurance rate by submitting your defensive driver certificate.
- Purchase accident forgiveness: this policy typically prevents your insurance rates from going up after “at-fault” accidents. This benefit can help drivers save on premiums and retain discounts for good driving.
- Increase your deductible: When you purchase car insurance, your deductible will be how much money your car insurance will deduct from claim checks. Lowering your deductible will lead to higher insurance rates because this means your insurer will need to pay out more money when you make claims. So, higher deductibles will lead to lower insurance rates since your insurer will not be forced to pay out as much money when you have a claim.
Contact a Car Accident Lawyer in Fremont
If you or a loved one has been involved in a car accident in Fremont, the Personal Injury Attorneys of Fremont are standing by to help you get the compensation you need. We understand the enormous medical costs associated with vehicle delivery service accidents and will aggressively pursue a settlement to match the full extent of your damages. If a settlement cannot be reached, then our firm will represent you in court and advocate on your behalf.
Contact Maison Law Accident & Injury Lawyers of Fremont today for a free consultation and case evaluation.