How Much Does My Car Insurance Go Up After an Accident in Michigan? [Updated 2025]

Following a car collision, it is natural to worry about whether your car insurance will go up. Since Michigan is a no-fault state, your car repairs and medical bills are typically covered by your own insurance. You may be left wondering, “How much does my car insurance go up after an accident in Michigan?” Understanding your rights and options for disputing liability can prevent car insurance hikes.

Factors That Affect How Much Your Insurance Increases After an Accident

Several factors influence how much Michigan drivers see their insurance rates increase after an accident. The severity of the crash, fault determination, and the cost of damages all play a role. Accidents on high-risk highways like I-94, I-696, and US-23 may involve multiple vehicles, leading to higher claims and larger premium hikes.

Insurance companies also consider past driving history. If you have prior accidents or violations, your rate increase will likely be higher. Additionally, out-of-town drivers unfamiliar with Michigan roads contribute to accident rates, particularly in busy areas like Woodward Avenue in Detroit or Hall Road (M-59) in Macomb County.

The exact amount of time your insurance rates will remain high depends on which company handles your insurance policy. The average amount of time is a few years. You can consider purchasing a new policy from another provider, but they would also have access to your driving record.

Does Fault Impact Your Car Insurance Rates in Michigan?

Although Michigan follows a no-fault insurance system, fault still impacts your insurance premium rate. This is because insurance companies have to weigh the risk that a policyholder could cause a future accident when determining liability and insurance rates. If you are more than 50% at fault for an accident, your insurance company may view you as a potential risk.

Crashes on congested roads like I-75, M-14, and Ford Road in Dearborn often result in disputed claims, with drivers contesting who was responsible. Sometimes, fault can be disputed. If you are falsely accused of causing an accident, you can work with an attorney to make sure your insurance carrier understands that you did not cause an accident or contributed minimally to the collision.

If you did not cause a collision, your rates should not increase significantly. If they do, you can hire an attorney to investigate whether your insurance provider acted in good faith or violated the terms of their own agreement.

Ways To Prevent or Reduce an Insurance Rate Increase

While insurance rate hikes after an accident may seem unavoidable, there are proven strategies to minimize the financial impact of a car collision. One important step is to prove that you were not at fault. This is the most effective way to ensure your monthly insurance payments do not increase.

Following a collision, you can use dashcam footage, police reports, and witness testimony to support your case. Having legal representation can improve your chances of a favorable outcome to your efforts because insurance companies often pay attention to which clients have an attorney handling their case.

If you are partly at fault and your rates go up, you can take a defensive driving course to reduce your premiums. This can offset any increase, although it may not fully make up for the increase in your insurance payments. If an accident involved an out-of-town driver unfamiliar with Michigan’s road laws, insurers may take longer to process claims.

How an Attorney Can Help Protect You From Unfair Rate Hikes

Having legal representation following a car collision affords multiple benefits. For one, you are more likely to secure the compensation you need because your attorney can establish fault and pursue compensation from the appropriate source. If the at-fault driver caused you serious bodily harm, your compensation may come from a personal injury claim.

A car collision attorney understands Michigan’s traffic, insurance, and personal injury laws. This background can help you avoid being taken advantage of. If the negligent driver tries to shift the blame to you, your attorney can use evidence to make sure the insurance provider or courts understand who is really at fault.

FAQs

How Much Does Insurance Go Up After an Accident in Michigan?

The amount that insurance rates increase after an accident in Michigan depends on factors like fault, accident severity, and driving history. If the accident is deemed at fault, rates typically rise, but Michigan’s no-fault insurance system may limit increases in certain cases. Discounts, policy details, and insurance provider policies also influence premium changes, which could last a few years or longer.

How Long Does an Accident Stay on Your Record in Michigan?

In Michigan, accidents generally remain on a driver’s record for up to several years, depending on severity and fault. Insurance companies may consider at-fault accidents when calculating premiums for three to five years. However, minor incidents may have less impact, and some insurers offer accident forgiveness programs. The length of time varies from company to company, so shopping around for a new policy may help.

How Much Will My Car Insurance Increase if I File a Claim?

The impact on insurance premiums for filing a claim depends on fault, claim amount, and driving history. At-fault claims often result in higher increases, while comprehensive claims like theft or vandalism may have a smaller effect. Policyholder loyalty, accident forgiveness, and insurer-specific guidelines can also influence rate adjustments. If your insurance provider acts in bad faith, you can work with an attorney to compel them to follow their own policy terms.

How Much Does Insurance Go Up After a First-Time Accident?

After a first-time accident, insurance rates can increase based on fault, claim cost, and driving history. Rate hikes could last a few years to several years. Some insurers offer accident forgiveness for first-time incidents, preventing premium hikes. However, at-fault accidents typically lead to higher rates and, while minor, no-fault accidents may have little to no effect on premiums.

Schedule Your Car Collision Consultation Today

A Car accident should not automatically mean higher insurance premiums. If you’ve been unfairly blamed for a crash, Wigod & Falzon can challenge liability, dispute insurance company findings, and work to protect your financial future.

Michigan’s no-fault system is complex, and insurers often try to shift blame to justify premium increases. Our attorneys know how to fight back, and we’re ready to advocate for you. Contact our office today to discuss your case and explore your legal options.