Does Your Insurance Go Up After a Hit-and-Run?

When a hit-and-run incident damages your vehicle, a common concern is whether your car insurance rates will increase. Understanding how such incidents impact your policy and future premiums is important. This article explains the immediate steps to take, relevant insurance coverages, the claim process, and how a hit-and-run might affect your insurance costs.

Immediate Actions After a Hit-and-Run

After discovering your vehicle has been involved in a hit-and-run, first ensure your safety and that of any passengers. Move your vehicle to a secure location if it is safe, away from traffic. This prevents further damage or injury while you assess the situation.

Contacting law enforcement to file an official police report is a crucial next step. Many insurance companies require a police report for hit-and-run claims. This report serves as an objective record of the incident, documenting key details such as the date, time, location, and a description of the damage. While specific reporting deadlines vary by jurisdiction, it is generally advised to report the incident as soon as possible, often within 24 hours or a few days, especially if there is significant property damage.

Documenting the scene is important, even if the other driver fled. Take photographs and videos of your damaged vehicle from various angles, capturing the damage, surrounding area, and any debris. Note any available details about the fleeing vehicle, such as its make, model, color, or partial license plate numbers, and its direction. Gathering contact information from witnesses can provide valuable third-party accounts, strengthening your claim.

Relevant Insurance Coverages

In a hit-and-run, two main auto insurance coverages for property damage are Uninsured Motorist Property Damage (UMPD) and Collision coverage. Understanding their distinctions determines how your vehicle repairs are covered. Both coverages address vehicle damage, but their application and deductibles differ.

Uninsured Motorist Property Damage (UMPD) coverage covers damages to your vehicle when the at-fault driver is uninsured or cannot be identified, as in most hit-and-run incidents. Many states offer UMPD, and some may mandate it or require insurers to offer it. The deductible for UMPD varies, often from $100 to $1,000, and sometimes there is no deductible or a specific one for hit-and-run claims, depending on the state and policy.

Collision coverage pays for damage to your vehicle from a collision with another car or object, regardless of fault. This coverage is generally optional. If you have collision coverage, you can use it for a hit-and-run, even if UMPD is available. Collision coverage involves a deductible, typically $250 to $1,000 or more, which you pay out-of-pocket before insurance covers repairs. Using UMPD instead of collision coverage for a hit-and-run can be advantageous if your UMPD deductible is lower or non-existent, depending on your policy.

Navigating the Insurance Claim Process

After securing the scene and gathering initial documentation, initiate a claim with your insurance provider. Contact your insurance company as soon as possible, ideally within 24 to 48 hours of the incident, though policies may allow up to 30 days. Prompt reporting helps ensure a smoother process and can prevent claim denials or delays.

When you contact your insurer, provide all collected information, including the police report number if available. The insurer assigns a claims adjuster to your case. This adjuster reviews the police report, examines photos, and may interview you and any witnesses to gather facts.

The insurer proceeds with an appraisal of your vehicle’s damages. This involves an inspection by an adjuster or authorized repair shop to determine repair costs. After assessing damages and confirming coverage, your insurance company works towards a settlement. The deductible for the chosen coverage (UMPD or Collision) will be applied, meaning you pay this amount directly to the repair shop or it is subtracted from the total payout.

Factors Affecting Future Premiums

A common concern after a hit-and-run is whether insurance premiums will increase. Hit-and-run incidents are generally considered “not-at-fault” for the victim, often resulting in less significant premium impact than at-fault accidents. Many states regulate against raising rates for not-at-fault claims.

Despite the “not-at-fault” classification, a claim can still influence future premiums. Insurers assess risk based on various factors; involvement in any accident, even if not at fault, might be considered. Your overall driving record, a history of multiple claims (even not-at-fault), and accident severity can play a role. Some insurers offer “accident forgiveness” programs, which can prevent rate increases after a no-fault claim, though these often cost extra.

The type of coverage used for the claim can also be a factor. Using UMPD coverage for a hit-and-run may have minimal impact due to its specific nature. However, using collision coverage might be viewed differently by some insurers, potentially leading to a smaller increase. Any premium adjustments typically last three to five years, though this varies by insurer and state regulations.