The aftermath of a car accident can be overwhelming, and there are several physical and financial effects you will experience in the following days, months, or even years. If you have suffered an injury in the accident, the medical bills will start to pile up, and you may miss time from your job. The financial consequences can be stressful to say the least.
Regardless of whether you are to blame for the accident, your insurance costs might increase. Of course, your bill will be much higher if the insurance company believes you were at fault for the accident. Thus, hiring a car accident lawyer to handle your legal case is critical. They will work to fight for your interests, which includes providing evidence in your favor for the insurance companies to consider.
You should hire a lawyer immediately because you cannot afford to let any more time go by before you begin the legal process. If you do, you may be shut out of financial compensation entirely or be in a worse position when it comes time to determine how much you may receive in a settlement check. Hiring a car accident attorney in Bakersfield after a crash can provide you with invaluable support and guidance throughout the legal process.
Insurance Companies Need to Reevaluate Your Risk Profile After You Have Been in an Accident
Insurance companies are in the business of taking on the risk that bad things happen or that their drivers may do something wrong, forcing them to pay a claim. In exchange for assuming this risk, they charge the driver a monthly premium. Every motorist is different; some may have clean driving records, while others may have a history of tickets and accidents. It makes sense that insurance companies will charge some drivers more than others because someone with a checkered history is more likely to cause the insurance company to incur liability.
An At-Fault Accident Makes You Riskier for the Insurance Company to Cover
Once a driver is in an accident, the picture changes for the insurance companies. They will need to consider a new set of data points when pricing the risk that the individual driver may pose. A driver who is at fault for an accident likely caused a loss, so the insurance company may drop the driver or charge them more for their policy. Unless the driver has a long history of causing accidents, the insurance company is more likely to opt for the latter approach.
In general, car insurance premiums are rising sharply these days. Insurance companies are under pressure from their shareholders to make money and feel the squeeze of higher prices everywhere. These circumstances have caused the value of claims to rise, increasing premiums on all drivers by roughly an average of 40 percent.
Insurance companies may also hike a driver’s premiums by more when they have been in an accident and may pay more for a claim than they would have a couple of years ago. Drivers are often hit with sticker shock when they see the new insurance bill.
Your Price Hike Will Take Effect on Your New Policy
Insurance companies reprice the policy after a certain period, and many will raise or lower rates after six months. Thus, they will recalculate your risk when your current policy expires, and the new one begins.
Some insurance companies allow for accident forgiveness. They may not raise your rates after you have been in one accident, although some limitations may apply. This policy feature can save drivers a considerable amount of money because it can take three years for a car accident to disappear from your record.
Increased Premiums for an At-Fault Accident Will Be Steep
Figures vary widely for how much your car insurance rates will increase after an accident. One study found that the average driver sees a hike of $872 yearly after an at-fault accident. However, this study may only be partially accurate because each driver may have paid a different amount before the accident.
Other studies are slightly more instructive because they inform drivers of the percentage that their insurance company may raise the rates after an accident. These studies show drivers can expect to pay 40 to 50 percent more after an accident. This hike will last three years before it goes away, so long as you do not have another accident or get moving violations.
Thus, you can see the profound impact of being at fault for an accident, where you will likely have to pay about $2,500 more for your insurance over three years. In addition, you may have other expenses related to your car accident that can complicate your financial situation.
You Might Also Pay More for Insurance When You Were Not at Fault
Your car insurance rates may increase for every accident, not just those where you were at fault. Any accident may make insurance companies rethink how they price your risk. Although this seems unfair because you have done nothing wrong, it is how they do business.
Of course, the premium hike will be less when you are not the one who is at fault for the accident. One study found that insurance companies raise rates by an average of 10 percent when you are in a not-at-fault accident. They increased the rates even though the other driver’s insurance company was the one who had to foot the bill for all of your car accident damages.
Unfortunately, this 10 percent can translate to several hundred dollars per year. While this represents a financial hit to you, it is the least of your concerns when you have suffered an injury in an accident that was someone else’s fault.
Many Factors Determine How Much More You Will Pay
How much rates go up depends on the insurance company and the geographic area in which you live. Some locales have a far higher cost of doing business, and insurance companies are wary of having to pay additional large claims. Remember that the 40 percent figure is just an average for drivers in all locales. You may see an even steeper increase when certain factors are present, such as the fact that this was not your first at-fault accident. Everything depends on the circumstances of your case.
You Have Many Major Concerns After a Car Accident, Including Proving Fault
Although how much your insurance will go up after an accident is a significant consideration, your main priority is whether you can get financial compensation and how much you will receive. Otherwise, your finances will suffer greatly, as you will face several bills.
The first challenge you will have after a car accident is proving that you are not at fault and showing that the other driver was to blame. You must gather proof demonstrating that the other driver was negligent. There is a four-part test that you must meet to show that the driver was careless, and the elements of negligence are as follows:
- The other driver owed you a duty of care (and they always do by being near you on the roadway).
- They breached the duty of care by doing something unreasonable under the circumstances, such as speeding or making a lane change without thoroughly checking their blind spots.
- You suffered an injury.
- You would not have suffered an injury had it not been for the other driver’s actions.
After the car accident, the clock begins to run. You can lose valuable evidence so quickly that you cannot gather yourself.
Liability for the Accident May Not Be Immediately Apparent
In the meantime, liability for the accident may hang in the balance. The insurance companies generally confer to determine which driver was liable for the accident. You want to tell your story, but you want to refrain from speaking to the insurance company yourself about the accident. The other driver’s insurance company may press you to give a statement, and you may not know you should not talk to them.
You Need a Lawyer Immediately After the Accident to Protect Your Rights
Thus, it makes sense for you to get a lawyer immediately after the car accident. The first thing your lawyer will do is investigate the accident, and their efforts can ensure you have the evidence you need to prove your case. Your lawyer will also be your voice when it comes to communicating with both your insurance company and that of the other driver. You need this representation early in the process because many things can happen that can compromise your legal rights.
Your Car Accident Lawyer Will Help You in Many Ways
Your car accident attorney will compile the evidence you need, and they will estimate the value of your claim. You need to have this number before approaching the insurance company for compensation. Knowing the exact value of your case will help you avoid being at a steep disadvantage in the settlement negotiations process.
Your lawyer will proceed to negotiate with the insurance company. It may offer some money, but the amount is far less than you deserve. You have a legal right to total and fair compensation; your lawyer’s job is to protect that right, and they will advise you to reject any offer that does not pay you for all the damages you have suffered. Your lawyer will likely respond with a counteroffer that may help bridge the position gap between you and the insurance company.
Most Cases Will Settle, and Car Accident Trials Are Rare
Eventually, you and the insurance company will get closer in numbers to the point where you will likely reach a settlement agreement. Most car accident cases will settle without needing a trial. The only reasons why you will need to take your case to a jury are:
- The insurance company denies your claim entirely because you do not have enough proof or it believes you are at fault for the accident.
- The insurance company partially blames you, but you do not believe you did anything wrong.
- You have a fundamental difference of opinions with the insurance company about how much you deserve in compensation, and it will not raise their settlement offer into the right ballpark.
You want to avoid taking your case to trial because there is always a risk that you get nothing. However, the insurance company may leave you with no choice based on its actions.
You Pay Nothing Upfront for a Car Accident Lawyer
If you have been in a car accident, you may hesitate to seek legal representation due to concerns about the cost. However, it is crucial to know that hiring a car accident attorney will not cost you anything out of pocket. In fact, most car accident attorneys work on a contingency fee basis, which means they only get paid if they win your case.
When you hire a car accident attorney, they will take on your case and work diligently to get you the compensation you deserve. They will conduct a thorough investigation, gather evidence, negotiate with insurance companies, and take your case to court if necessary. Throughout this process, your attorney will handle all the costs of your case, including court fees, expert witness fees, and other expenses.
Your lawyer is undoubtedly worth the percentage of your money that they get. People who hire car accident lawyers end up in a better position financially than those who make the mistake of trying to file their claim with the insurance company without legal representation. Insurance companies like to take advantage of those who either trust them or think they are saving money by trying to handle matters independently.
Hiring a car accident attorney is in your best interest if you have suffered an injury in a car accident. They will handle all the costs of your case and work tirelessly to get you the compensation you deserve. Do not let concerns about cost hold you back from seeking the legal representation you need. Contact a Bakersfield Personal Injury attorney today and protect your rights.