Can a no-fault collision raise your insurance rates?

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Reader’s question:

A lot of insurance companies claim not to raise premiums with a no-fault accident, but I’ve heard any kind of claim can raise your insurance rates. What’s the truth?

-Kendall

Good question.

The truth of the matter is, each claim has a certain code. This code is determined by how bad the accident was, who’s at fault, and the level of human injury. Most dents or scrapes such as a cracked windshield will be so gently coded that your premiums won’t change at all. Others will be so violent that one multi-car pile up could result in your insurance being canceled when it’s time to renew.

Usually, if your damage is less than $500 it is considered a low-code or “non-chargeable” accident, so your rate stays the same. However, if over the course of a year you have several “non-chargeable” repairs, don’t be surprised if your premiums begin to creep up.

As far as collisions go, one no-fault collision a year is about all you can ask your insurance company to accept before rates go up. If you are at fault, there is almost no chance your rates will not immediately increase.

GLJ