How an Accident Impacts Your Auto Insurance Rates

Getting into a car accident can be a traumatic experience, even if the accident itself only resulted in minor damage. Beyond your physical and emotional state, a car accident can have long-term consequences on your auto insurance rates.

Here’s what you need to know about how a car accident will impact your auto insurance premiums and what you can do to lower them.

At-Fault Accidents

In 2021, ICBC overhauled its insurance model and replaced it with Enhanced Care coverage. At the core of this new model is what has been dubbed “no-fault” insurance. What’s important to note is that while these changes have removed litigation from at-fault accidents, ICBC does still assign a percentage of responsibility for a crash.

For example, an ICBC investigation may determine that you were 75% responsible for an accident and the other driver 25% responsible. In this case, you would almost certainly see an increase in your auto insurance premiums when it comes time to renew. Likewise, the less responsible driver would likely also see their premiums go up, but to a lesser extent.

And here’s why.

ICBC uses a combination of the Driver Risk Premium (DRP) and the Claim-Rated Scale (CRS) to determine how your auto insurance premiums. After responsibility for an accident is assigned your CRS score will increase, leading to a higher premium.

Not-At-Fault Accidents (Not Responsible)

On the other hand, if you are involved in an accident where you are found to be zero percent responsible, your insurance rates should not go up. ICBC’s system is designed to protect drivers who are victims of accidents caused by others and this will be reflected in how your premiums are calculated.

In the aftermath of an accident claim an ICBC claims representative will be assigned to your case. This individual will collect statements from both parties as well as any corroborating witnesses. They will review police reports and rules of the road, consult with the estimator who evaluated vehicle damage, and look at presidents from similar cases. Once the investigation has been completed, a letter will be sent to each party assigning full, partial, or no responsibility.

If you disagree with your claims representative’s decision you have 90 days to appeal.

Tips for Reducing Your Auto Insurance Rates

While there is little you can do about your CRS score in the immediate aftermath of an accident where you were found partially or fully responsible, there are ways you can mitigate the effects on your overall premium. Here’s how:

• Maintain a Clean Driving Record
  You can work to offset damage to your CRS score by keeping your DRP score low. Your Driver Risk Premium is influenced by things like driving-related criminal code convictions, convictions for driving while using mobile devices, and excessive speeding.

• Take Advantage of Discounts
  ICBC offers a range of discounts that can help reduce your auto insurance premiums. These include discounts for things like installing an anti-theft device or usage-based discounts.

• Increase Your Deductible
  Opting for a higher deductible can lower your premium. However, this means you will pay more out of pocket if you need to make a claim.

• Shop Around
  While you must use ICBC for your basic coverage, you are free to shop around for any additional optional auto insurance coverage you might need. This includes collision, loss of use, rental coverage, extended third-party liability, and specific perils. Using a private auto insurance provider can often provide significant savings over ICBC rates for the same coverage.

Accidents are an unfortunate risk of owning a vehicle. However, understanding how your premiums are calculated and the potential impact of an accident on your rates can help you mitigate the effect and stay ahead of auto insurance rate increases.