Car insurance doubled after parking accident

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Nov 22, 2019
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#1
Few months ago, I got a small accident (first time ever, bumper to bumper) in a parking lot of my university: I was in line to get a parking permit, advance, and stop, and advance... and hit the car before me. The damages were very minor and Geico spent roughly $3000 to fix both cars (all new and original parts).
Few days ago I got an email from Geico with my new premium (for the next 6 months), and they go from $320 for 6 months to $570 for full coverage, which is almost twice.

My questions are:
1) should I have reported the accident in another way? For instance insisting that it is a private parking lot at low speed, and not a driving/street accident.
2) for how long will I get this increase of premium? 1 year, 2 years...?
3) any suggestions on things to do to decrease the premium? The annual mileage is very low and documented to Geico already
 
Feb 12, 2019
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#2
$3000 isn't exactly low. It's not high, but it's not low. And if $3k was only the damages they likely paid out even more for rental cars (my last accident the rental car was almost as much as the cost of the damage).

The only way for this to have not dinged your insurance was to pay for the damages out of pocket and not involve insurance at all.

The accident will stay on your report for 5 years (I believe). How long it will affect your premiums will depend on the specific carrier's algorithms. Some might not look back the full 5 years.

I'm not sure there's anything you can do to lower your premiums. If you got points on your license from it anything to mitigate that would help, but it doesn't sound like you were ticketed for it. You can shop around to other carriers to see if they're offering cheaper rates.
 
May 30, 2019
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#3
Few months ago, I got a small accident (first time ever, bumper to bumper) in a parking lot of my university: I was in line to get a parking permit, advance, and stop, and advance... and hit the car before me. The damages were very minor and Geico spent roughly $3000 to fix both cars (all new and original parts).
Few days ago I got an email from Geico with my new premium (for the next 6 months), and they go from $320 for 6 months to $570 for full coverage, which is almost twice.

My questions are:
1) should I have reported the accident in another way? For instance insisting that it is a private parking lot at low speed, and not a driving/street accident.
2) for how long will I get this increase of premium? 1 year, 2 years...?
3) any suggestions on things to do to decrease the premium? The annual mileage is very low and documented to Geico already
1) The nature of your report to the insurance company would not have affected the outcome of higher rates. You caused an accident, which led to Geico concluding you are at a higher risk of causing or being in a future accident.

2) it depends on the insurance company and in what state you live.

3) Shop around for a different insurance company that might offer a driver with your history a lower rate. Also review your current policy to see if you can get a lower premium. Explore your deductibles, liabilities limits, etc.
 
Sep 18, 2018
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#5
You can shop around to other carriers to see if they're offering cheaper rates.
Just be aware that the rate probably won't be cheaper from another company. Here's why:

The quote you get when you enter your initial info with another carrier will probably be cheaper. But then when you enter more detailed information about your driving record, which will include a question asking you to detail any incidents from the past few years, you will have to enter this incident, and that will trigger an updated quote that's much higher. If you don't enter details about the incident, the other carrier's search of your driving record will turn it up anyway, and that will trigger an even higher premium quote.

I know this from experience with a minor accident on my wife's driving record.
 
Dec 19, 2014
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#6
If you are motivated, you may want to look up your CLUE report to see what was reported.

Since rates are calculated differently by different insurance companies, you can shop around to see if another company offers a lower rate.
State law plays a role in how much of a rate increase you experience.

However, in NC, an at fault accident with $3000+ damages would be 3 insurance points, would increase your insurance premiums by 60% which is comparable with what you were quoted by your insurance company.
 
Jun 12, 2019
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#7
Few months ago, I got a small accident (first time ever, bumper to bumper) in a parking lot of my university: I was in line to get a parking permit, advance, and stop, and advance... and hit the car before me. The damages were very minor and Geico spent roughly $3000 to fix both cars (all new and original parts).
Few days ago I got an email from Geico with my new premium (for the next 6 months), and they go from $320 for 6 months to $570 for full coverage, which is almost twice.

My questions are:
1) should I have reported the accident in another way? For instance insisting that it is a private parking lot at low speed, and not a driving/street accident.
2) for how long will I get this increase of premium? 1 year, 2 years...?
3) any suggestions on things to do to decrease the premium? The annual mileage is very low and documented to Geico already
The others have answered your questions pretty well and I wanted to add that the rates are filed with your state's department of insurance and not raised at a whim. You might have been rated as a driver with no loss history before the loss and now you have a paid loss. They might rate drivers at a certain age group a much higher risk after one loss based on the actuary they use. Not all actuaries would find this a greater risk, thats why you should shop around. Do disclose this loss to get a fair comparison. You can also try to increase your deductible to 1k. You can also find a company that charges by the mile if you are not a heavy commuter.
 
May 16, 2018
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#8
I had an insurance company do that when the accident was not my fault! There had been 2 accidents that year that were absolutely and unequivocally not my fault (was hit from behind) and the insurance company still tried to raise my rates. I switched to another company immediately. The original company then tried to woo me back by offering the lower rate again but I was through with them. Most companies will offer accident forgiveness to new customers, so I would investigate that and get yourself to a new company.
 
Nov 22, 2019
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#9
Thanks for all the response, I will look around for company with accident forgiveness. I dont know for isurance by miles, I guess like for airlines, the cheapest, the less customer service!
I didn't know about the CLUE report, I will check it out.
Thanks, happy New Year!
 
Likes: calihankl
Aug 29, 2018
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#11
I had an insurance company do that when the accident was not my fault! There had been 2 accidents that year that were absolutely and unequivocally not my fault (was hit from behind) and the insurance company still tried to raise my rates.
I had the same experience. Four days before my driving test, in New Jersey, I was hit my a truck that ignored a police officer telling him to stop. My mother was in the car, so I was completely legal, and the police officer indicated the truck driver was the sole cause of the accident.

Because I had an accident before I had a drivers license, my first three years insurance rates were through the roof. (Something like $2k/year for liability only back int he 1970's.) And had no claims for over a decade after that.
 
Likes: jsn55

jsn55

Verified Member
Dec 26, 2014
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#14
I had the same experience. Four days before my driving test, in New Jersey, I was hit my a truck that ignored a police officer telling him to stop. My mother was in the car, so I was completely legal, and the police officer indicated the truck driver was the sole cause of the accident.

Because I had an accident before I had a drivers license, my first three years insurance rates were through the roof. (Something like $2k/year for liability only back int he 1970's.) And had no claims for over a decade after that.
This is a funny story, California! Did you get into trouble with the police for driving without a license? Or do you mean that you had a permit and were legal as long as an adult with with you?

I surmise that auto insurers are all getting much more upset and vindictive about any kind of damage caused by "distracted driving" ... I'll bet the increase of these little collisions over the last 5 years is horrendous.
 
Likes: calihankl
Aug 29, 2018
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#15
This is a funny story, California! Did you get into trouble with the police for driving without a license? Or do you mean that you had a permit and were legal as long as an adult with with you?
I was driving on a learner's permit.

I was driving her 1970 Lincoln Continental; my mother loved that car and was really upset by the accident. She also had a hell of time dealing with the other driver's insurance, who refused to cover the repair at a legit facility. The insurance suggested she use an assumed name to purchase the replacement part from a facility in Newark; likely a chop shop. So she never got the car repaired. And I was never allowed to drive it again.

Three years later my sister totaled the car driving home from a party.
 
Likes: Texasslingers
May 16, 2018
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#18
Accident forgiveness in most companies is when you are already with a company that offers it and have an accident. But it certainly doesn’t hurt to ask.
Accident forgiveness is also when you are switching to a new company and they forgive a prior accident to give you the lowest accident-free rates. If you have an accident on your record from a few years ago in my state it will keep your rates high for 6 years, no matter how minor. Insurance companies in my state compete with each other by offering to forgive that prior accident so that you qualify for a lower rate.[/QUOTE]
 
Mar 23, 2015
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#19
GEICO is the worst for either dropping you or increasing rates after an accident. After I had an accident, at 19, my only one EVER, when they renewed my Dad's policy it was with me as an EXCLUDED driver. Same after my brother had an accident! AND they raised his rates even without us on the policy. Poor man had 4 teens driving and was paying 2K a year! Hubby and I have 5 vehicles with one child on policy now, with Allstate, with a couple of speeding tickets and a couple minor accidents and the change to our premiums was pretty minimal, only a $12.50 "supplement" after the first one, and about $300 a year after his second. (Which was [probably fair, the kid had a lead foot for a while there--he's better now and our rates have gone WAY down now. since it's been 3 yrs.). I've been pretty happy with Allstate *knock wood* so far. My older son has USAA and they've been good to him, as well. Look around. You may be surprised what you find. Good Luck!
 
Likes: jsn55
Jun 27, 2017
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#20
We've been with USAA for over 25 years. Never had an accident. Our rates have gone up slightly over the years due to an increase in claims by others, along with the greater frequency of newer vehicles being totaled by insurance companies because they are too expensive to repair. And this comes from my BIL who is an adjuster for USAA.
 
Likes: jsn55