Car crash not your fault? This insurer is most likely to raise your rates anyway


Can your auto insurance company raise your premium for an accident that wasn’t your fault?

I learned the answer the hard way a few years ago when my neighbor who parked next to me banged up my car as he was leaving his parking space.

Even though I had nothing to do with the accident, and I wasn’t even present, my rates shot up 15%.

Not-at-fault crashes can increase your insurance rates

A 2017 study from the Consumer Federation of America (CFA) found that several major insurance companies are more likely to raise premiums after a not-at-fault accident.

In some cases, you can end up paying $400 more for doing nothing wrong at all, the study’s author said.

This car insurer is most likely to raise your rates after a no-fault crash

“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.”

CFA wants lawmakers to outlaw these penalties, which is already the case in California and Oklahoma.

Taking a look at five auto insurers, the study found that Progressive penalized not-at-fault drivers most aggressively, followed by GEICO, Farmers and Allstate.

State Farm didn’t increase premiums for these accidents.


This car insurer is most likely to raise your rates after a no-fault crash

When you’re shopping around for a better deal on car insurance, CFA recommends that you ask specifically about whether you may be subject to this surcharge.

Read Clark’s list of the best auto insurance companies

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