Hit and Run Claims: Will Your Insurance Rates Take a Hit Too?

Nobody plans to be the victim of a hit-and-run, but will a hit and run raise insurance premiums? It happens more often than people think. You park your car in a shopping center lot, come back, and find a big dent with no note in sight. Another driver slams into you at a traffic light and speeds off before you can register what just happened. It’s frustrating, and unfair, and leaves you with one big question: Will filing a hit-and-run claim make my insurance rates go up?

The short answer: It depends. But before you panic, let’s look at what happens when you file a hit-and-run claim and how it may or may not impact your insurance premiums. Understanding the process can help you make informed decisions and potentially save you money.

What Counts as a Hit-and-Run?

A hit-and-run happens when a driver causes an accident and leaves the scene without providing contact or insurance information. This could involve:

• A driver hitting your parked car and driving off – You come back to your vehicle only to find it damaged, with no way to identify the party responsible.
• A rear-end collision where the other driver flees – This can happen at stoplights, stop signs, or even in slow-moving traffic.
• A sideswipe accident on the road – If another driver clips your car while changing lanes or misjudging space and doesn’t stop, it’s considered a hit-and-run.
• A pedestrian or cyclist being hit – In some unfortunate cases, hit-and-run incidents involve pedestrians or cyclists, where the responsible driver does not stop to assist.

Hit-and-runs can happen anywhere—on busy highways, in quiet neighborhoods, or even in a parking garage. The key factor is that the responsible driver leaves without taking accountability. If they are never identified, your insurance will be left to cover the damages—if you have the right coverage.

Will Your Insurance Cover a Hit-and-Run?

Whether your insurance will cover the damage depends entirely on your policy. Here’s how different types of coverage come into play:

• Uninsured Motorist Property Damage (UMPD) – Some states allow you to use this coverage to pay for damage from a hit-and-run. However, not all insurers offer it, and it may come with a deductible. Some states don’t allow UMPD to be used for hit-and-run accidents at all, so you’ll need to check with your provider.
• Collision Coverage – This is the most common way to cover hit-and-run damages. Collision insurance will pay for repairs, but you’ll have to cover your deductible first. If you don’t have collision coverage, you may have to pay for the damage out of pocket.
• Uninsured Motorist Bodily Injury (UMBI) – If you or your passengers are injured in a hit-and-run accident, this coverage can help with medical expenses, lost wages, and other costs. This is especially important since hit-and-run drivers often aren’t found, making them effectively “uninsured.”
• Personal Injury Protection (PIP) or Medical Payments Coverage (MedPay) – These can help cover medical bills regardless of who is at fault, providing additional protection in the event of injuries.

Without these coverages, you may be left to shoulder the costs yourself. That’s why reviewing your policy and understanding your coverage is crucial before an accident happens.

Will Your Insurance Rates Go Up After a Hit-and-Run Claim?

This is where things get tricky. Whether your premium increases depends on several factors:

1. Your State’s Insurance Rules

• Some states prohibit insurers from raising your rates for hit-and-run claims if you were not at fault. States like California have strict regulations preventing unfair premium hikes in these cases.
• In most states, however, filing a claim—even if it’s not your fault—can still lead to higher premiums. Insurers may treat any claim as a risk factor, leading to an increase in your rates.

2. Your Insurance Company’s Policy

• Different insurers handle hit-and-run claims differently. Some treat hit-and-run claims just like any other at-fault accident, increasing your rates regardless of the circumstances.
• Others are more lenient, especially if you have a history of safe driving and no prior claims. Some companies even offer “accident forgiveness” programs that prevent rate increases for your first claim.

3. Your Coverage Type

• Uninsured Motorist Claims: Filing under UMPD or UMBI may prevent your insurer from penalizing you as they recognize it as protection against irresponsible drivers.
• Collision Claims: Filing under UMPD or UMBI may help you avoid penalties from your insurer as they recognize it as protection against irresponsible drivers.

4. Your Claims History

• If you have multiple claims on your record, even a hit-and-run claim could lead to higher premiums. Insurers look at patterns, and if you’ve filed several claims in the past few years, they may view you as a higher risk.
• A clean history, on the other hand, may help you avoid a rate hike. Some insurers also consider loyalty and accident-free discounts when assessing rate changes.

How Much Could Your Rates Increase?

If your insurer decides to raise your rates, the increase varies based on your location, policy, and driving record. On average, an at-fault accident can raise premiums by 20-50%. Hit-and-run claims under collision coverage may lead to similar increases, but if you file under uninsured motorist coverage, the impact may be lower.

How to Prevent a Hit-and-Run Rate Increase

Here are some tips to minimize the financial impact of a hit-and-run claim:

• Report the Hit-and-Run to the Police – Many insurers require a police report for hit-and-run claims. Having official documentation strengthens your case.
• Gather Evidence – If possible, take photos, look for witnesses, and check for security cameras. Video footage can be crucial in identifying the driver and avoiding a claim under your own policy.
• Consider Not Filing Small Claims – If the damage is minor and repair costs are close to your deductible, paying out of pocket may help avoid a premium increase.
• Ask About Accident Forgiveness – Some insurers offer this feature, which may prevent a rate hike for your first claim.
• Shop Around for Better Rates – If your insurer raises your rates, it might be time to compare quotes from other providers.
• Park Smart – Parking in well-lit areas or using a dash cam can help deter hit-and-run incidents or provide evidence if one occurs.

Final Thoughts

Dealing with a hit-and-run is stressful enough without worrying about your insurance rates. While a claim may increase your premiums, it depends on your insurer, state laws, and the type of coverage you use. If you’re ever in this situation, understanding your policy and options can help you make the best decision.

Need help reviewing your coverage or finding a better rate? Agency Height can help you explore options and make sure you’re fully protected. Get in touch today for a free insurance review!