I Had An "At Fault Accident" How much will my premium go up?

Alberta Drivers

There are a lot of variables that determine your premium for auto insurance but the primary factor is your "star rating". 

The higher your star rating the lower your premium.   What is a star and how do you get em? 

Every year that you have been insured and not had an accident gets you one star.    That means that if you have had a license, been insured, and not had an accident for the past three years you get a three star rating, and so on.  

The big problems is - When you have an at fault accident you start over and the premium increase can be substantial.   You can go from a 7 star rating to a 1 star rating which will likely double or triple your premium.  

Your premium will increase at your next renewal following your at fault accident.    How much higher will it be?  It really depends on who you were insured with.   Each insurance company has rules as to what star rating you will be left with after your at fault accident.  The rules vary quite a bit.   One company may let you maintain a three star rating while others will rate you as a one star.   When you purchase your insurance you may want to know what your insurer would do with your premium if you had an at fault accident. 

Some companies offer to provide insurance against the loss of your star rating by charging an extra premium each year. This usually costs about $40 per year. The isurance company basically promises not to take away more than one star if you were to have an at fault accident.   This prevents your premium from going up dramatically following an at fault accident.  

Things are Changing

Recently a couple of insurers have determined that a good driver is not any more likely to have an accident this year simply because he had an at fault accident last year.     They have changed their viewpoint and now will quote good drivers with one at fault accident as a five star driver.   This is going to change the rating system in the future if these companies maintain their perspective.  Other companies are likely to follow. 

It is important for anyone who has had an at fault accident in the past year to shop their insurance to determine if his renewal terms are appropriate.