How Does an Accident Affect Car Insurance Premiums to Go Up? You just got into a car crash. While the damage was minimal, and your car only needs a small amount of repair, you are still in shock. Being in a car accident may traumatize you, but you will get over it as time
How Does an Accident Affect Car Insurance Premiums to Go Up?
You just got into a car crash. While the damage was minimal, and your car only needs a small amount of repair, you are still in shock. Being in a car accident may traumatize you, but you will get over it as time goes by. However, your next car insurance bill can bring back the same feeling you had after the accident.
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What Happens to your Insurance Rate After an Accident?
Once you’ve called your insurance company to start a claim, your insurance rate may increase. This will depend on many factors like how bad the accident was and how bad the actual damage to your vehicle, who’s fault was it, and if you have a clean driving history or a history filled driving violations and tickets.
If the accident was not your fault, then you are safe, and your insurance carrier cannot raise your premium. On the other hand, if you are at fault then you can be sure that your next bill will be higher than normal.
Your insurance carrier can raise your premium, and you can be expecting a raise between 5% to 40% over what you were paying before your fender bender. There is no way to predict the real number without knowing the factors that we have mentioned above. Your insurance agent is the only one who will be able to assist you and give you an exact number.
How Long will it take Your Insurance to change your rate after an accident?
A car accident can affect you for many years to come. Every State carries its own regulations and this same rule applies to insurance companies, so you can expect to see a different increase depending on the state of your residence, the average is 3 years for most states if you keep a clean record during this period, you should see the rates going back to normal.
How to Reduce Your Premium After a Car Accident?
Your car insurance premium will increase in most cases, but there are few steps that you can take to keep it under control.
Insurance companies know that accidents are waiting to happen and even the most skilled drivers are likely to have a car accident at any moment. Therefore, some of them offer an option called Accident Forgiveness where they will forgive you for your first accident and keep your rate the way it was. Make sure you ask your agent if your insurance company offers this option and, if so, how you can acquire it.
Increase Your Deductible
A deductible is an agreed upon amount that is your responsibility to pay toward any insurance claim on your vehicle. The insurance company will pay for the cost of repairs minus the agreed upon deductible. For example, if the total cost of repairs is $1,500 and you have a $500 deductible, then the insurance will pay $1,000. The remaining $500 is your agreed responsibility and is what you will pay the shop that is performing your repairs. Raising the deductible will save you between 10% and 35% on your car insurance, but you must remember that if an accident occurs and you are at fault, you will be responsible to pay for the damage to be fixed.
Eliminate the Unnecessary Coverage
If you are driving an older car, it’s wise to drop the Comprehensive coverage and the Collision coverage if the annual cost for these coverages is more than 10% of your car value. You will be fine with your Liability Coverage.
Shop for Discounts
Insurance companies offer a wide variety of discounts. Ask your agent if they have discounts for multiple policies, outstanding students, packages if you combine your auto insurance with your home insurance, Veteran’s discount …etc.
Safe Driver Class
Most of the insurance companies will give you a better rate if you complete a safe driving class. This class is mandatory in case you end up with many moving violations tickets or if you happen to be in the position of losing your driving license for any reason (DUI, Speeding Tickets…etc.), but you can also attend this class to lower your rate.
Shop around and don’t rush or jump into the first insurance company you find, request a quote from a few different carriers, and compare the rates. you will be surprised!
A car accident can take its toll but with common sense and a little research of car insurance carriers and policies, you should be able to control your rates. Drive safe!
Patriots Auto Body is here to assist you with all your insurance claims, don’t hesitate to call us with any concerns.
Patriots Auto Body
11 spring Ave, Lowell MA 01851