In this video, we will address whether or not your insurance rates go up if you’re involved in a minor fender bender. My name is Matt Eason. I’ve been practicing personal injury law here in California for over 25 years. Clients regularly ask me if their insurance rates increase because they’re involved in a fender-bender accident.
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The real question isn’t so much that it was a fender bender. The more significant questions are two. One was the driver who was more than 50% at fault, and two, what law was violated when the accident occurred? Understanding your insurance rates in California is really about understanding that we are typically under a point-based system.
Generally speaking, under California law, you are only charged a point if you were more than 50% at fault for an accident. So, if you’re involved in a fender bender that was not your fault or was primarily someone else’s fault, you should not have any additional points added to your record, and as such, your rates should not go up.
If you were, in fact, more than 50% at fault, then you’re likely to have a point attributed to your record. The number of points, though, is significant. If you had a fundamental lapse in judgment or paying attention, a fender bender in the parking lot, rear-ended someone on a freeway, or some primary traffic offense, those are traditionally one point and have a corresponding rate increase.
Unfortunately, if you were involved in a more significant incident that broke the law, such as drunk driving, reckless evading, hit and run. Those usually are two-point offenses, and your insurance rates will likely increase considerably.
In addition to determining fault and what law was violated, if a fender bender results in less than $1000 of property damage and no one was hurt, that incident does not have to be reported to the DMV, and thus, no points are awarded.
Under California law, if you had a lapse in concentration and caused more than $1000 in property damage, that was your fault. Then yes, your rates are likely to go up or could go up depending on your carrier based on having a point awarded. Some insurance companies do, however, have grace provisions for your first offense, for your first point, as it may be.
In summary, over your lifetime, it’s expected you’re going to have a lapse in judgment at some point in time. We all do; however, just because you have a lapse in judgment doesn’t mean your insurance rates will go over the top. Likewise, even if you wind up with a point on your record, most insurance companies have discounts or waivers for your first point, so don’t panic; it should be okay.
In short, it’s not so much that it was a fender, but rather, was there more than $1000 in damage, who caused the accident, and what law was violated. That will dictate how many points are on your record and, consequently, how much of an insurance increase you’ll have, if any.
My name again is Matt Eason. I’ve been practicing personal injury law here in Sacramento for over 25 years. If you’ve been involved in a car accident and have questions about insurance or your claims, I hope you consider reaching out to one of our Sacramento car accident lawyers. Our law firm is Eason & Tambornini. We are located at 1234 H Street, Sacramento, CA 95814. Our phone number is (916) 438-1819.
