Can insurance companies increase premiums after a single accident?

Insurance companies can indeed increase premiums after a single accident based on their policies. This practice is generally known as a "rate review" after a claim is made, and it allows insurers to assess the risk associated with providing coverage to a particular driver.

When a driver is involved in an accident, insurers may consider this event as an indicator of higher risk, which can lead to increased premiums. However, the specifics can vary widely among different insurance companies. Each company has its own underwriting guidelines, which dictate how they handle claims and when premium adjustments might be warranted. Some companies may have accident forgiveness programs or policies where a single accident doesn't affect the premium, but others may raise rates regardless.

This flexibility allows insurers to manage their risk and ensures that they can remain financially stable while providing coverage. Therefore, it's essential for drivers to understand their insurer's policies and how an accident could impact their premiums in the future.