How a Not at Fault Accident Can Affect Your Insurance Rates in Maryland
Not at Fault Accident Doesn’t Mean No Impact on Your Insurance Rates
The question on how a not at fault accident can increase your car insurance premium comes up to us frequently. Over the past 20 years or more, companies have started to look at not at fault accidents a little differently. You might think if you’re in a crash and it’s clearly not your fault, your auto insurance rates should stay put. After all, why should you pay more for someone else’s mistake, right?
Unfortunately, it’s not always that simple.
Even in Maryland, where insurance operates under a fault-based system, the not at fault accident affect on insurance rates can still catch you off guard. Your insurer may not apply a traditional “surcharge,” but they can—and most companies now do—use other rating factors to increase your premium.
Let’s break down how that happens and what you can do about it.
Maryland’s Fault-Based System: The Basics
Maryland uses an at-fault system, meaning the driver who causes the accident (or their insurer) pays for the damages. If someone hits you, their insurance should cover your car repairs, medical bills, and other losses.
This system is designed to protect the not at fault driver from financial fallout. But when it comes to your auto insurance premium, things get a bit murkier.
Even though the other driver caused the accident, your insurer may still find ways to use that claim to raise your rates.
How Insurance Companies Use Not at Fault Accidents to Raise Rates
1. Removing Accident-Free or Safe Driver Discounts
Many drivers earn premium discounts for keeping a clean record—no accidents, no claims, no speeding tickets. But here’s the catch: some insurance companies may remove those discounts even if your accident wasn’t your fault.
Why? Because technically, a claim still occurred. Your spotless record isn’t quite spotless anymore in the eyes of the insurer.
Losing a “safe driver” or “accident-free” discount can cause your premium to increase by 10% to 25%, or more, depending on the carrier and the discount level. This doesn’t show up as a “surcharge,” so you may not realize the accident caused the jump.
This is especially common when the accident leads to a claim through your own policy—like if the other driver was uninsured, underinsured, or fled the scene.
2. Changing Your Rating Tier or Risk Class
Insurance companies sort drivers into rating “tiers” or risk categories. The better your driving history, the lower your risk tier—and the cheaper your rates.
But after a not at fault accident, even with no official penalty, most insurers may move you to a higher risk tier. Why? Because from their perspective, frequent claims—even not at fault ones—can signal a higher likelihood of future accidents.
This move is subtle. It won’t show up as a penalty or violation, but your base rate will quietly climb. You may not even know you’ve been reclassified unless you ask directly.
Even one not at fault accident can tip the scales, but multiple incidents over a few years can increase the chances significantly.
3. Counting the Not at Fault Accident in Future Underwriting
Not all impacts are immediate. A not at fault accident might not affect your next renewal, but it could influence how you’re rated in the future.
Insurers track claims history for three to five years. When you shop for a new policy or hit a renewal cycle, that not at fault accident may come into play. Some companies use these claims to predict “claim frequency,” a key factor in determining rates—even when you weren’t to blame.
So while you might dodge a hike today, the effect can still show up later.
When You Might See an Increase (Even Without Fault)
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The claim was paid by your uninsured/underinsured motorist coverage
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The other driver wasn’t clearly at fault or you were partially involved
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You’ve had multiple not at fault accidents within a short period
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Your insurer automatically reevaluates discounts or tiers after every claim
These changes might not be labeled as penalties, but they can add up to higher premiums just the same.
What You Can Do to Protect Yourself
1. Request a Renewal Breakdown
Always review your renewal policy in detail. If your rate jumps unexpectedly, ask for a full explanation—especially about your tier and any removed discounts. Most carriers must disclose changes, but not all do it clearly.
2. File With the At-Fault Driver’s Insurance When Possible
If the other driver is clearly at fault and insured, try to file your claim directly through their policy. This helps keep the claim off your own record entirely.
3. Consider Adding Accident Forgiveness
Some companies offer accident forgiveness programs that may include not at fault accidents—though this varies. It’s worth asking your agent about your options.
Frequently Asked Questions
1. Can my insurance increase even if I wasn’t at fault?
Yes. Even though you weren’t responsible, some insurers remove discounts or adjust your risk tier, leading to higher premiums.
2. What if the other driver was uninsured?
If you file the claim through your own uninsured motorist coverage, your insurer may treat it as a claim on your record, even though you weren’t at fault.
3. How long will a not at fault accident affect my rates?
It depends on the insurer, but typically three to five years. If you switch carriers during that time, the new insurer may also consider it.
4. Will all companies raise my rates?
No. Some insurers don’t penalize you for not at fault accidents at all. Others may only do so after multiple incidents. That’s why comparing policies is key. As your independent insuance agent, we can do many comparisons without you having to spend time calling multiple companies.
5. What if I think my rate increase was unfair?
You have the right to ask for a detailed explanation. In Maryland, you can also file a complaint with the Maryland Insurance Administration if you believe you were treated unfairly. The details of filing the complaint will be on the notice of increased premioum notice that the company send to you.
Contact Huff Insurance
At Huff Insurance, we’ve been helping Maryland drivers make smart insurance decisions since 1960. As an independent insurance agent, we’re not tied to one company—we work with many. That gives us the freedom to compare rates and find the best option for your unique situation, especially after a not at fault accident.
Whether you’re reviewing your policy or just want to see if you’re being charged fairly, we’re here to help. We understand how different insurers treat claims and can explain your options clearly and honestly.