Whether your car insurance premium increases after an accident depends on where you live.
It’s a fact of life, being in any car accident can be stressful, whether or not you are at fault. Many people fear their own car insurance premiums will increase if they tell their insurance company, but this is not always the case. However, even if the other driver caused the accident, you might still see an increase in your premium. Why?
How Car Insurance Premiums Work After an Accident
The moment an accident gets reported, insurance companies start assessing the situation. If you were at fault, expect your rate to go up. The increase depends on how serious the accident was and how much your insurer ends up paying. Even a minor fender bender can lead to a higher premium, though the jump won’t be as steep as it would be for a major collision.
Your car insurance premiums are based on a number of factors, including your driving history, the severity of the accident, and where you live. Even if the accident was not your fault, insurance companies look at a few things:
- Increased Risk Profile: If you have been involved in an accident, insurers may view you as a higher risk, regardless of fault.
- State Laws and Regulations: Some states allow insurers to increase rates after a claim, while some states protect drivers from unfair hikes.
- Claim Frequency: If your insurer notices several claims on your policy, even if you were not at fault, they may increase premiums to offset potential future losses.
Maryland Residents
Can your rates increase? The answer is yes; possibly even if the accident was not your fault. There is one type of insurance claim that will not increase your premium, and that is a Personal Injury Protection (PIP coverage) claim. If you file a PIP claim for medical expenses or lost wages, this cannot be held against you and later increase your premiums, regardless of who is at fault.
The issue insurers really analyze is how many UM (Uninsured Motorist) and UIM (Underinsured Motorist) claims you’ve had on your policy. If you read your insurance policy carefully, you may see this listed as UMPD (Uninsured Motorist Property Damage Claim), or UMBI (Uninsured Motorist Bodily Injury Claim), along with a value for your deductible. Your Uninsured Motorist coverage will pay for damages to your car or pay to settle your injury claim if the at-fault driver had low or no insurance coverage.
An at-fault driver without insurance is considered “uninsured” if:
- the at-fault driver does not have insurance;
- the other driver and vehicle are unknown, such as a hit and run collision; or
- the at-fault driver’s insurance company has denied coverage because the other driver violated the terms of their auto insurance policy.
But beware, if you are involved in an accident in one of these situations, you will need to file an uninsured motorist claim under your own policy. But before you do that, there are a few things to know:
- In Maryland, uninsured motorist coverage only applies if the other driver is found to be 100% at fault. If you are found to be even 1% at fault, you cannot collect due to Maryland’s contributory negligence laws.
- For an uninsured motorist claim, many insurance companies require you to call the police immediately and report the claim. These requirements can be found within your insurance policy, or you can contact your insurance company to inquire.
- Filing an uninsured motorist claim may affect your premiums and you may need to pay more for your policy. An insurance company is allowed to rerate your policy and remove certain discounts if you file an uninsured motorist claim. The claim will not cause a surcharge, but in most cases, the claim may have a negative impact on your insurance costs.
Statutory Rules in Maryland
Under Maryland law, an “increase in premium” includes a surcharge, which is the retiering or reclassification of an insurance policy or the removal of an insurance discount. Md. Insurance Code Ann. § 27-614, Md. Insurance Code Ann. § 19-507
If your insurance company increases the premium for a private passenger motor vehicle, they must provide you with written notice at least 45 days before the effective date of the increase. Md. Insurance Code Ann. § 27-614
If the increase is due “wholly or partly to an accident,” the notice must be clear and specifically state the basis for the increase. The notice must include:
- The name of the driver
- The date of the accident
- “If fault is a material factor” for the insurer’s action, a statement that the driver was at fault. Md. Insurance Code Ann. § 27-614
- The notice must specify that the driver was at fault, ONLY if fault is a material factor in the premium increase. This means Maryland law allows insurers to legally increase premiums for reasons where an individual’s fault is not a material factor.
Consumer Protections in Maryland
You have the following options:
- Right to Protest: If you believe your rate is being increased improperly because you were not at fault, you may contact your insurance provider to request a review. You may also file a complaint with the Maryland Insurance Administration (MIA) within 30 days of receiving the increase notice.
- Notice Requirements: The 45-day notice does not apply if the premium increase is part of a general statewide rate increase filed with the state that does not result from reclassifying an individual.
- Non-Renewal vs. Premium Increases: While your rate may increase, Maryland law prohibits an insurer from cancelling or refusing to renew coverage based on claims history when two or fewer claims during the preceding three-year period were for accidents or losses where the insured was not at fault. Claims under uninsured motorist and comprehensive coverage are presumed not to be at-fault.
District of Columbia Residents
Under D.C. law, your car insurance premium cannot be increased solely on account of an auto accident where it is determined you were not at fault. D.C. Code § 31-2406
The District of Columbia strictly regulates when an insurance company may increase an insured’s rates following an accident. No insurer authorized to sell motor vehicle insurance in the District shall increase the rates charged an insured on account of an accident, unless it is first determined that the accident was caused by the fault of the insured. D.C. Code § 31-2406
Statutory Rules in Washington D.C.
This statutory protection aligns with the broader legislative framework of the District of Columbia Compulsory/No-Fault Motor Vehicle Insurance Act. While the District’s insurance system utilizes compulsory coverages and restricts certain tort litigation to make recovery for economic losses more readily available (D.C. Code § 31-2401, Monroe v. Foreman, 540 A.2d 736), the law explicitly protects policyholders from premium penalties when they are entirely free from fault in an accident. D.C. Code § 31-2406
No insurer shall cancel a policy except:
- For refusal or failure of the insured to pay a premium due under the terms of the policy of motor vehicle insurance;
- Where the motor vehicle registration certificate of the insured has been suspended or revoked during the policy of motor vehicle insurance; or
- Where the license of an insured has been suspended or revoked during the period of motor vehicle insurance, the insurance shall not provide coverage for such insured during the period of suspension or revocation.
The term “uninsured motor vehicle” means a motor vehicle that:
- Is a motor vehicle that is not insured by a motor vehicle liability policy applicable to the accident;
- Is covered by a motor vehicle liability policy of insurance but the insurer denies coverage for any reason or becomes the subject of insolvency proceedings in any jurisdiction; or
- Is a motor vehicle that causes bodily injury or property damage and whose owner or operator cannot be identified.
Exceptions and Qualifications
While an insurer is explicitly barred from raising your premium “on account of an accident” where you were not at fault D.C. Code § 31-2406, there are broader risk-classification and rating adjustments permitted under District law that are not tied to individual accident fault:
- Systemic Rate and Class Adjustments: Under D.C. Code § 31-2703(c), insurers are permitted to establish or modify risk classifications based on “reasonable considerations” such as individual experience, location or dispersion of hazard, size, expense, or management, provided these classifications apply uniformly to all risks under substantially similar circumstances. D.C. Code § 31-2703
- Lack of Rate Uniformity: District law does not require uniformity in insurance rates, classifications, or rating plans across different companies. D.C. Code § 31-2703 Insurers periodically file for systemic rate increases or adjustments with the Commissioner of the Department of Insurance, Securities, and Banking based on overall financial and loss records. D.C. Code § 31-2703, Government Employees Ins. Co. v. Montgomery, 465 A.2d 813
Remember, if you are involved in an auto accident in Washington, D.C., and it is determined that you were not at fault, your insurer is statutorily prohibited from increasing your insurance premium because of that accident.
However, this does not prevent your insurer from adjusting your premiums in the future due to broad, non-accident-specific rate restructurings or general changes to risk classifications approved under District law.
Virginia Residents
Under Virginia law, an insurer generally cannot increase your car insurance premium or charge points under a safe driver insurance plan if you are involved in an auto accident that was not your fault. Va. Code Ann. § 38.2-1905
Statutory Restrictions on Premium Increases
Under Va. Code Ann. § 38.2-1905, an insurer is strictly prohibited from increasing an insured’s premium or charging points under a safe driver insurance plan, whether applicable to commercial or private passenger vehicles, as a result of a motor vehicle accident unless the accident was wholly or partially caused by the named insured, a resident of the same household, or another customary operator. Va. Code Ann. § 38.2-1905
Furthermore, no insurer may charge points or increase the insured’s premium under a commercial or private passenger automobile policy due to an accident if the operator causing the accident is a principal operator insured under a separate policy. Va. Code Ann. § 38.2-1905
No insurer shall assign points under a safe-driver insurance policy to any vehicle other than the vehicle customarily driven by the operator responsible for incurring points. This policy prevents punishment to the owner/principal operator of a vehicle for entrusting the vehicle to an insured driver who is insured under another policy.
For law-enforcement officers, Va. Code Ann. § 38.2-1905 provides additional protections, stating that an insurer cannot increase an officer’s personal insurance premium or charge points under a safe driver insurance plan for an accident that occurred in the course of employment while the officer was driving an agency-provided vehicle and engaged in law-enforcement activity. Va. Code Ann. § 38.2-1905
Administrative Guidance and Fault Determination
Virginia administrative guidelines clarify that insurers must have actual proof of fault before increasing a premium or assigning points (Virginia Insurance Notices and Bulletins).
A Virginia motor vehicle report only indicates that a driver was involved in an accident, not who was at fault; therefore, insurers must conduct additional research to determine fault. General justifications such as “failure to maintain control of the vehicle” do not constitute sufficient evidence of fault without supporting information.
Additionally, for personal auto programs, insurers are prohibited from using “not-at-fault” accidents—which include medical expense claims, income loss benefits claims, uninsured motorist claims, and comprehensive losses—to determine tier eligibility for renewals. Doing so is recognized as a practice that could result in an unlawful premium increase for an accident not caused wholly or partially by the insured in violation of Va. Code Ann. § 38.2-1905.
Notice Requirements and Right to Appeal
If an insurer increases an insurance premium or charges points as a result of a motor vehicle accident, it must notify the named insured in writing. Va. Code Ann. § 38.2-1905 This notification must inform the insured of their right to appeal the decision to the Commissioner of Insurance if they believe the premium increase or point charge was applied without just cause. Va. Code Ann. § 38.2-1905
- Timeline: The insured must request the appeal in writing within 60 days of receiving the notice of the premium adjustment or point charge. Va. Code Ann. § 38.2-1905
- Appeal Process: Upon receiving the request, the Commissioner will promptly initiate a review to determine whether the premium increase or point charge is justified. Va. Code Ann. § 38.2-1905
- Interim Rates: The increased premium or point charge remains in effect while the appeal is pending. Va. Code Ann. § 38.2-1905
- Refunds: If the Commissioner rules that the increase or point charge is not justified, or was not assigned in accordance with the insurer’s filed rating plan, the insurer must promptly refund any premiums paid as a direct result of the unjustified increase and adjust all future billings. Va. Code Ann. § 38.2-1905
Qualifications and Limitations
The statutory prohibition against increasing premiums for not-at-fault accidents does not restrict insurers from adjusting general, non-accident-related rate factors that are filed with and approved by the State Corporation Commission. Va. Code Ann. § 38.2-1904, Va. Code Ann. § 38.2-1906
All rates and all changes and amendments to rates under Va. Code Ann. § 38.2-1904, for use in the Commonwealth of Virginia, shall consider loss experience and other factors within Virginia if relevant and actuarially sound, provided that other data, including countrywide, regional, or other state data, may be considered where such data is relevant and where a sound actuarial basis exists for considering data other than Virginia-specific data. Therefore, if there is a reasonable and probable basis to do so, rates and changes may be based on data other than Virginia-specific data.
Insurers are permitted to group risks by classifications and modify rates for individual risks in accordance with rating plans that measure variations in hazards or expenses, provided the rates are not excessive, inadequate, or unfairly discriminatory, and are based on sound actuarial principles. Va. Code Ann. § 38.2-1904
In addition, there is a time limit on how long the increased rates are in effect due to an at-fault accident. If an insurer does permissibly increase rates or apply surcharges due to an at-fault accident or a motor vehicle conviction, it cannot use that information to produce increased or surcharged rates above their filed manual rates for a period longer than 36 months, beginning no later than 12 months after the date of the accident or conviction. Va. Code Ann. § 38.2-1904
In summary, Virginia law protects policyholders from facing increased car insurance premiums or safe driver point penalties for accidents in which they were not at fault. Insurers must establish proof of fault before adjusting rates due to an accident, notify the insured of any such adjustments, and provide a clear statutory pathway for the insured to appeal unjustified increases to the Commissioner of Insurance.
In Conclusion
Dealing with insurance companies after a crash can be stressful for any driver—and the laws are different in every state. If you have been involved in an automobile accident, it is important to understand your rights and the terms of your insurance policy.
