Does Your Insurance Go Up for a Hit and Run?
Understand how a hit and run claim can affect your car insurance premiums and the factors influencing potential changes.
Understand how a hit and run claim can affect your car insurance premiums and the factors influencing potential changes.
A hit and run incident occurs when a driver involved in a collision leaves the scene without providing their information or offering assistance. These events can be unsettling because the responsible party is unknown, leaving the victim to navigate the aftermath alone. Such incidents raise questions about how one’s auto insurance policy might respond to damage and if it could lead to increased premiums. This article explores insurance premium determination and the implications of a hit and run claim.
Insurance companies assess a variety of factors to calculate premiums, aiming to predict the likelihood and potential cost of future claims. A driver’s history, including past accidents and claims filed, plays a significant role in this assessment. This information helps gauge risk, as a history of claims can indicate a higher probability of future incidents.
The concept of “fault” is also central to premium adjustments. An at-fault accident, where the insured driver caused the collision, will almost certainly lead to a premium increase. If an accident is not the insured’s fault, the impact on premiums might be less severe or non-existent, though some insurers may still raise rates due to involvement in a crash.
Different types of insurance coverage address various risks and influence premiums differently. Liability coverage, for instance, pays for damages to another person’s property or injuries if the insured is at fault; it does not cover the insured’s own vehicle repairs. Collision, comprehensive, or uninsured/underinsured motorist (UM/UIM) coverage protects the insured’s own vehicle or covers medical expenses, regardless of fault. The specific claim type and policy’s deductible also factor into the premium calculation. Other considerations include the driver’s record, vehicle type, policyholder’s location, and credit score.
Hit and run incidents are generally considered “not-at-fault” for the victim, as the other driver flees the scene and is unknown. While this “not-at-fault” status typically means a premium increase is less likely than for an at-fault accident, it is not guaranteed rates will remain unchanged. Some insurers may still raise premiums, even for not-at-fault incidents, because involvement in any accident can indicate increased future risk.
Specific types of coverage are needed to cover damages from a hit and run. Collision coverage helps pay for vehicle repairs if it is hit by another vehicle or object, regardless of fault. Uninsured Motorist Property Damage (UMPD) coverage may also apply, as a hit and run driver is considered uninsured. Some states do not allow UMPD to cover hit and run incidents, requiring collision coverage instead. For injuries, Personal Injury Protection (PIP) or Medical Payments (MedPay) coverage helps cover medical expenses for the insured and passengers.
When filing a hit and run claim, a deductible generally applies, particularly for collision or UMPD claims. This is the amount the insured pays out-of-pocket before coverage begins; for instance, if repairs cost $700 and the deductible is $500, the insured pays $500, and the insurer covers the remaining $200. Deductibles for bodily injury coverages like Uninsured Motorist Bodily Injury (UMBI) or PIP are less common. Some policies offer “accident forgiveness,” which can prevent a rate increase after a first at-fault accident, and may extend to certain not-at-fault incidents. The impact on premiums varies based on insurer policies, state regulations, and the insured’s claims history.
After a hit and run incident, prioritizing safety is the first step; ensure everyone is safe and move the vehicle to a secure location if possible. Immediately contact law enforcement to report the incident. Filing a police report creates an official record and is often required by insurance companies for hit and run claims. Obtain a copy of the police report or its number for your records and insurance claim.
While waiting for authorities, gather information. Take photographs of vehicle damage, the scene, and relevant surroundings like road conditions or traffic signs. Note the time, date, and exact location. If there were witnesses, collect their names and contact information, as their statements can be valuable for the police report and insurance claim.
Promptly notify your insurance company about the hit and run, even if unsure about filing a claim. Provide them with all collected information, including the police report number. Maintain detailed records of all communications with the police and your insurance company, including dates, times, and names of individuals you speak with. This documentation helps streamline the claims process.