Does Failure to Yield Affect My Insurance?

Car insurance is a significant financial consideration for many, and traffic violations can directly influence its cost and coverage. A “failure to yield” incident, in particular, carries implications for your insurance, potentially affecting premiums, claims, and even your policy status. Understanding these consequences helps drivers make informed decisions after an incident.

Understanding Fault and Failure to Yield

“Failure to yield” occurs when a driver does not give the right-of-way to another vehicle, pedestrian, or cyclist when legally required. Common scenarios include ignoring yield signs, failing to yield to oncoming traffic when making a left turn, or not yielding to pedestrians in a crosswalk.

Insurance companies determine fault in an accident based on state laws and the specific details of the incident. An insurance adjuster will gather information, including police reports, interviewing involved parties and witnesses, and assessing photos of vehicle damage. Traffic laws and regulations play a significant role in this determination, as violations like failure to yield often indicate negligence. While some states use comparative negligence, where blame can be assigned as a percentage to each party, failure to yield often places substantial or complete fault on the driver who committed the violation.

How Failure to Yield Affects Premiums

A failure to yield incident, particularly one leading to an at-fault accident, typically results in increased car insurance premiums. Insurance companies consider drivers with traffic violations to be a higher risk, adjusting rates to account for the increased likelihood of future claims. This premium increase is often referred to as a surcharge.

Many states utilize a point system, where specific numerical values are assigned to driving violations, directly contributing to higher insurance rates. The severity of the premium hike depends on factors like the driver’s prior record, the accident’s seriousness, and the insurer’s specific policies. An at-fault accident can lead to an average rate increase ranging from 23% for minor incidents to over 33% for major ones, with some increases potentially reaching 40% to 150%. These increased premiums typically remain on a driver’s record for three to five years, though this duration can vary by company and state.

Impact on Claims and Policy Status

A failure to yield incident, especially if it leads to an at-fault accident, significantly impacts how insurance claims are handled. If you are found to be at fault, your liability coverage is primarily used to cover damages and injuries sustained by the other party, up to your policy limits. This includes their medical expenses, vehicle repairs, and potentially lost wages. Your collision coverage, if you have it, would then pay for the damage to your own vehicle, subject to your deductible. Medical payments coverage (MedPay), an optional addition, can help cover medical expenses for you and your passengers regardless of who was at fault.

Beyond the immediate claims, a history of at-fault accidents or multiple violations, including failure to yield, can affect your policy’s future status. While a single accident is unlikely to result in immediate policy cancellation, especially for drivers with a clean record, repeated incidents can lead to non-renewal. Non-renewal means the insurance company will not offer to continue your policy once the current term ends. Insurers may also choose not to renew a policy if you file too many claims, even if some were not at fault, as this suggests a higher overall risk.

Steps After a Failure to Yield Incident

After a failure to yield incident that results in an accident, taking immediate steps is important for managing the situation. First, ensure everyone’s safety and then promptly notify the police to file a report, especially if there are injuries or significant property damage. Obtain the police officer’s name, badge number, and information on how to get a copy of the accident report.

Collecting detailed information at the scene is also crucial. This includes exchanging contact and insurance information with other involved drivers, gathering contact details from any witnesses, and taking photographs of vehicle damage and the accident scene. Report the incident to your insurance company as soon as possible, typically within 24 to 48 hours, as timely reporting helps preserve evidence and avoids potential delays or claim denial. When communicating with your insurer, cooperate fully with the adjuster by providing accurate information, but avoid admitting fault.