A former insurance producer, Laura understands that education is key when it comes to buying insurance. She has happily dedicated many hours to helping her clients understand how the insurance marketplace works so they can find the best car, home, and life insurance products for their needs.

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Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products, including home, life, auto, and commercial, and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, mainly in the insuranc...

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Reviewed by Leslie Kasperowicz
Farmers Insurance CSR 4 Years

UPDATED: Oct 18, 2021

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The effects of a hit and run on your car insurance rates vary due to specific circumstances. Many times an accident occurs when you are not riding in your vehicle and this can have a very different outcome.

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There are several ways to prevent your car insurance rates from increasing. You could exercise extreme caution when driving or park in a secure location, for example. Other factors include being the only driver and never lending your car to anyone else.

However, these are all proactive measures, which a hit and run is not. In other words, you can do everything in your power to stop specific issues that might occur, but it is virtually impossible when someone else causes damage to your vehicle.

Since you need to understand these results, it is better that you first review your car insurance policy in detail. You can unveil an enormous amount of information, just from reviewing your agreement. Once you have a personal perspective, you can draw upon certain conclusions based on the facts, instead of hearsay.

Every Car Insurance Company Differs

Every car insurance company looks at accidents differently. Your particular provider may have a strict policy on accidents no matter who is at fault. Insurers usually have these rules in place because of the number of uninsured motorists on the streets today.

The statistics compiled by the Idaho Department of Transportation lists the top five states with the most uninsured drivers. They include New Mexico, Mississippi, Alabama, Oklahoma, and Florida. New Mexico has the highest rate of uninsured drivers with 29%.

Unfortunately, with the current unemployment rates it seems many people simply cannot afford to pay for the most basic car insurance policy anymore. This leads to a number of drivers who flee the scene and cause worse consequences for themselves and those they place in danger.

In addition, Deadly Roads.com, which provides support to those wounded of these kinds of accidents, explains the many common excuses for leaving the scene of an accident. Topping their list are drunk drivers or those under the influence of some type of drug. The second reason is no insurance or a suspended license.

The sad part is the victims are the ones who suffer the most because they did no harm and yet, may find themselves paying dearly for someone’s mistake. This means you could indeed see an increase in your car insurance rates when your policy renewal date arrives.

Even though you played no part in the accident, the fact that you needed to file a damage claim places you at risk. Once they record the incident on their records, they can exercise their rights to charge you more.

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Length of Time with Your Insurance Provider Matters

The length of time with your auto insurance provider matters because some may forgive an occasional accident or two, especially if you were on the receiving end. For example, if you were driving along the road and another driver speeds by and clips your bumper, they may not hold this against you.

Chances are if you have enough damage to require the assistance of your car insurance company, they will advise you to open a claim. Once they review the details, you will probably receive support. Instead of raising your rates, they may not feel the need to make any adjustments.

However, do not get comfortable with this process if this occurs. They may simply allow you to continue paying the same premiums as long as this does not happen again. Anyone can be exposed to a selfish, aggressive driver occasionally, but these kinds of issues do not transpire frequently.

You need to take every precaution to make yourself aware of pending dangers at all times while driving.

How You Drive Plays an Important Role

You could face harsh penalties when you do not obey the laws of your state while you are driving, including increased car insurance rates. This is not something many people think about when someone hits them and keeps going. However, these situations do occur from time to time.

For example, you could make an improper turn and this leads to an accident. Of course, when the other driver races off, they are still guilty, but when the police officer arrives, they could give you a ticket also.

Another scenario could include you driving erratically and changing lanes improperly, that leads to a collision. During a standard accident, the normal procedure would be that you and the other driver would pull over to exchange information. However, if they leave before the police arrive, you are the only person they can deal with at that time.

Their job is to listen to your story, investigate the surrounding area, and arrive at a certain conclusion. If they determine your actions caused the accident you will receive a citation to appear in court. If the judge finds you guilty, they may add points to your license. This is where problems begin.

Every state has their own way of assessing points for specific violations.

In Tennessee you could receive as many as three points if you do not signal correctly, four for improper turning and as many as six for driving erratically.

You can be sure that the Department of Motor Vehicles will report these updates to your car insurance provider. This could definitely change the way they see your driving history. Do not be surprised when you receive a surcharge for the remaining premium period if this happens. Your insurer does not have to wait until the policy renewal period. The surcharge will appear because of your accident and violations.

Where You Live Can Determine a Different Outcome

Where you live always determines your car insurance rates, which is why your provider needs an accurate address. If you live in New York, you could already pay higher rates than someone in South Dakota could. Nevertheless, each state also incorporates accident statistics into their calculations. They review this information annually, so your accident makes a big difference.

The New York Department of Financial Services provides an excellent explanation for the rates in this state. They show how the auto insurance providers there include the grand total of claims as well as the seriousness of each one. Then they divide the number of every claim filed by single insurance customers.

When they determine the difference between the costs of the claim versus their individual profit margin, they arrive at their figure. They need to make a certain amount of money every year in order to remain operational. Each claim they pay out reduces their profitability. The insurer risks losing money if they pay out more in claims than what they receive in premiums.

Inadvertently, your accident could affect others not just you. It is safe to say that the entire state could eventually start to see increases in their annual car insurance policies because of an accident you did not cause.

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Amount of Damage and Cost of Repairs

The amount of damage and cost to repair your vehicle also determines whether your auto insurance provider raises your rates. After all, it is their responsibility to pay for the carelessness of the other driver. This is why you pay your premiums.

The experts have some very impressive statistics you should know, when it comes to vehicle repair costs. In fact, they state it costs the auto insurance industry approximately $4,900 every second for every accident in America. Even more interesting are the damage statistics. There are about 7 million motor vehicle accidents every year.

Future predictions seem just as grim, as the senior population continues to grow and by 2025, the United States will accommodate 33 million seniors who reach age 70 and up.

The number of accidents may continue to increase simply because of the diminished ability to respond to unpredictable situations.

What does this mean to you? Simple, any time you hit the road you could sustain an accident because of the pure congestion. This means more people may have the opportunity to evade you and just keep going. Unless the numbers of accidents decrease, the price to fix your vehicle will keep rising. For every dollar the car insurance industry pays to their customers, the odds of an increase become more likely.

The Severity of Injuries

The attorneys at Personal Injury.com make several strong statements about car insurance and medical expenses. They claim many auto insurance providers do not adequately cover their customers when it comes to hit and run claims. Those that do pay out may not provide sufficient monetary compensation.

According to these lawyers, the numbers of these incidents continue to rise each year as well. Unfortunately, for the few car insurance companies that settle these specific claims, they often increase the rates of the victims because they cannot seek lost revenue from the driver who fled.

It becomes increasingly difficult to maintain your current level of coverage at the same rate when you utilize the services of an attorney, because your car insurance company pays for this as well. All of the costs come from your liability or personal injury protection. This all adds up to huge losses for the auto insurance company.

It is true that some accidents may not cause any negative effects on your car insurance rates, while other types certainly may. It is also a fact that the type of accident has the most bearing. However, when you head out on the open road, you have limits to what you can do to remain safe.

You need to work to increase your efforts to ensure that the odds remain in your favor by remembering that driving is serious business. These days you cannot afford careless thinking or driving.

When you don’t know where to turn to for great car insurance rates, just type your ZIP into our FREE rate finder now!