Will My Auto Insurance Rates Go Up if I Hire an Attorney After a Car Wreck?

Managing the aftermath of a car wreck can be stressful, and worries about auto insurance premiums increasing are common. However, in Louisiana, your premiums are safeguarded against increases for accidents where you are found not at fault.

Even if you’re partly responsible for the accident, the financial weight of medical bills and lost wages often overshadow any potential rise in insurance rates. Seeking guidance from a legal professional after a collision is essential for protecting your rights and ensuring your future premiums are not unfairly affected.  

Understanding auto insurance rate adjustments post-crash and how a Louisiana auto accident lawyer from Dudley DeBosier can help determine fault is key to protecting yourself against unfair insurance hikes.

Do Insurance Rates Go Up After a Car Accident?

Many drivers are concerned about the potential rise in auto insurance rates following a car accident if the accident is reported. In Louisiana, a fault-based system is applied to car insurance claims, taking into account multiple factors to determine insurance rate changes after an accident. Some instances where your rates may rise include:

• You’re at fault: Your rates will likely increase if you are found responsible for the accident. Insurers view at-fault drivers as higher risks for future claims.

• History of multiple claims: Even if you’re not at fault, having multiple claims within a short period can lead to higher rates. Insurers may see this as a pattern of risk, regardless of fault.

• Partial fault situations: Under Louisiana’s pure comparative fault rule, if you are partially at fault, your responsibility level could impact your future rates. For example, being 30% at fault in an accident might not lead to as high a rate increase as being 70% at fault.

• Severity of the accident: Accidents with major injuries or extensive property damage often increase insurance premiums, reflecting the higher costs of investigating and compensating for these damages.

• Violations of traffic laws: If the accident involved a violation of traffic laws like speeding or DUI, this could lead to an increase in your insurance rates. Traffic violations, especially DUIs, can result in legal penalties and higher claims costs, which are factors insurance companies consider when recalculating premiums.

If You’re Not At Fault, Do Your Rates Still Increase?

Your insurance company cannot raise your premium for a not-at-fault accident in Louisiana. LA. R.S. 22:1284 prohibits insurers from raising rates, adding surcharges, and canceling or refusing to renew motor vehicle insurance policies based on accidents where the insured driver was not at fault.

The regulation requires insurers who breach this rule to reimburse the excess premium along with a penalty. The insured might also be eligible for the cost of attorney fees.

Does Hiring an Attorney Have an Impact on Your Insurance Rates?

Hiring an attorney shouldn’t directly affect your insurance rates after a crash in Louisiana. Your rates are usually determined by your driving history, the kinds and amounts of claims you’ve made, how serious any accidents were, and the points on your driver’s license.

Engaging an attorney ensures you receive fair treatment in the claims process and an accurate assessment of your damages. It also involves dealing with complex legal issues, especially in cases where there is a dispute over who is at fault or if the compensation offered by the insurance company is insufficient.

However, the outcome of actions taken by your attorney, such as winning a large settlement or proving that you were less to blame in an accident, might indirectly affect your future premiums.

If, for example, your attorney helps establish that you were less at fault for an accident than initially determined, this might reflect positively on your risk profile and potentially reduce the risk of rate increases. But if you’re found to be more at fault after legal proceedings, this could negatively impact your rates.

Concerns about increased rates shouldn’t discourage you from seeking legal representation, especially if you’re facing significant losses or injuries after your collision. An experienced attorney can provide valuable guidance and advocacy, potentially saving you money and ensuring you receive fair compensation.

Protect Your Rights with Dudley DeBosier

If you’re worried about your auto insurance rates and chances for getting compensation after a crash, speak with our knowledgeable Louisiana car accident attorneys at Dudley DeBosier. With a commitment to stress-free recovery and a no-fee guarantee, we can negotiate with insurers and fight for your rights.

Schedule your free consultation now. Our team is ready 24/7 to offer skilled legal assistance and support in New Orleans, Baton Rouge, Lafayette, Houma, Denham Springs, and Shreveport.

Disclaimer: This content has been reviewed by Chad Lederman, Director of Legal Operations at our New Orleans office.

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