Getting into a car accident is stressful enough. If you have already been involved in one accident and find yourself in another, you may immediately wonder: Will my insurance company raise my rates? Can they cancel my policy? Will they still cover the damage?

The answer depends on several factors, including who was at fault, the type of coverage you have, your driving history, and your insurance company’s rules. If you are a Florida driver, here are some important things to know.

Will My Insurance Premium Go Up After a Second Accident?

It may.

Insurance companies consider your driving and claims history when determining risk and premiums. A second accident can make you appear to be a higher-risk driver, particularly if you were at fault.

Florida rules also place limits on how accident history can be used. Under Florida Administrative Code Rule 69O-175.008, insurers generally may use motor vehicle accidents from the 36 months immediately preceding a new or renewal policy when determining additional premiums or whether to renew certain automobile coverage.

Your insurer may also discover an accident after initially issuing a policy and then adjust your premium once your driving record is verified. The Florida Department of Financial Services notes that this can happen when the insurer does not have the complete driving record when the policy is first written.

That means a second accident does not automatically mean your insurance will be canceled, but it could affect what you pay for coverage.

Can My Insurance Company Cancel My Policy?

A second accident does not automatically give an insurer the right to cancel your policy simply because you were involved in a crash.

Florida law provides a specific protection for policyholders who have maintained their automobile insurance for at least five years. An insurer generally cannot cancel or terminate the policy solely because of a single traffic accident after those five years of coverage.

However, that does not mean an insurer can never cancel or refuse to renew a policy. Other circumstances may affect your coverage, and Florida law has specific rules governing cancellation and nonrenewal of automobile policies. For example, Florida's Department of Financial Services states that insurers generally must provide at least 45 days' advance notice of nonrenewal.

What If the Second Accident Wasn't My Fault?

This is important.

Being involved in an accident does not necessarily mean you were responsible for causing it. If another driver caused the crash, your insurance situation may be different from a situation where you were at fault.

Even when you believe the other driver was responsible, you should still report the accident to your insurance company and preserve evidence. Photos, videos, witness information, the police report, medical records, and other documentation can become important when determining liability and pursuing compensation.

Your insurance coverage may also come into play if the other driver does not have enough insurance to cover your losses.

The Bottom Line

A second car accident can affect your insurance, particularly your future premiums and how your insurer evaluates your risk. But being involved in a second accident does not automatically mean your insurance will be canceled or that you have no options for recovering compensation.

If you were injured in a car accident in Florida, understanding your rights before accepting an insurance settlement can make a significant difference.

For more information, contact our office at Askew & Associates, P.A. by calling 954-546-2699.

Disclaimer: this blog post is not intended to be legal advice. We highly recommend speaking to an attorney if you have any legal concerns.