How a Car Accident Affects Your Insurance Rate

No one wants to get involved in a car crash. But when a crash takes place, there’s nothing you can do about it. Your next step would be to contact your policy provider informing them of the situation.

But you’ve got to know how accidents affect your insurance rates. Having knowledge of this makes it more comfortable to know where you stand concerning increases in premiums.

If you’re an at-fault driver, there’s sure to be a serious spike in your premiums. Keeping tabs on how much your rates are likely to increase provides

How much does your car insurance go up after an accident?

If you’re insuring a salvage title car, there’s a greater chance of your premiums going up. Based on your car’s age and high mileage, it may be a good idea to file for a claim and get a better-priced vehicle.

In most cases, an at-fault body injury accident could increase your premiums to over one-third (30% +).

An at-fault property damage over $2000 costs over 30% in premiums. A claim on comprehensive cover over/under $2000 costs a mere 3% increase in premiums.

But when you’ve engaged a claim for second at-fault property damage, you could see your premiums spiking to over 100%. This rise is over 70% for the first at-fault property damage claim!

So do be careful to not be at fault whenever you hit the road.

What if the accident isn’t my fault?

It’s possible the accident may not have been your fault. If that’s the case, you can apply for accident forgiveness.

Some insurance firms will even forgive the crash if you’re qualified for it.

Accident forgiveness happens when your policy provider ignores the charges attracted by an initial at-fault accident of a driver in your policy.

Accident forgiveness regularly applies to a driver with an impeccable driving record. Long-time motorists also qualify. In most cases, accident forgiveness is free.

But with new drivers and not-so-great driving records, the insurance firm may charge a fee for accident forgiveness.

Determining the timeline of a long-term/short-term driving record is left to insurance firms to decide.

In many auto insurance companies such as Allstate, State Farm, Geico, etc. there is some form of accident forgiveness available for its drivers. Motorists with these insurance firms have to register in a program, and the company decides who’s eligible for forgiveness.

Lowering your rates after a surcharge

You may be a new customer with your insurance firm or unqualified for accident forgiveness.

No matter your classification, don’t despair! You can still get something to ease your financial burden.

Check out other choices

Jumping ship isn’t always the best idea, but when you’re keen on lowering your rates, it could be a good option.

There’re lots of insurance firms with a range of prices on offer. While some companies may charge high premiums, they could make up for it with massive bonuses.

Other companies rely on marketing their services with lower premiums to help with your budget.

Apply for discounts

A lot of auto insurance firms have discounts for their customers. In a lot of cases, young drivers are the ones engaged in accidents. That’s why many insurance firms have discounts targeted at maintaining good driving records among teens and young adults.

If you’re a good grade student and unfortunately got involved in an accident, you can apply for a good grade discount.

There’re also other policies targeted at making the most from your policy. Take time out to ask your provider what you qualify for in a bid to lower your premiums.

Get a clean credit record

Insurance firms take a close look at how healthy your credit is when calculating your premium rates. If you’ve got no debt registered and work within your budget, there’s a greater chance you’ll get a lower premium rate upon renewal.

Ask for your deductible to be increased

If you request an increase in your deductibles from your policy provider, it’s another way to reduce costs.

A higher deductible naturally translates to a lower premium. But be very careful before making this decision. Should you need to make a claim in the future, your out-of-pocket expenses will be greater than expected.

So think of your long-term gains before deciding on increasing your deductibles.

Cut down add-ons in your policy

It’s a painful thing to do in many cases, but lowering your cover in certain aspects could bring your premiums down.

It could get really uncomfortable to pay for some expenses should you remove comprehensive or collision coverage from your policy.

Your policy provider will have the right to refuse your claim if a theft or domestic accident occurs. So check out what’s best for you in the long run before making your mind up.

Final Word

Since you now know what it costs to cover an accident through your policy, it’s best you play safe on the road.

Defensive driving will make you fare better with your premium rates, and you’ll be saved a lot of stress along the way too.

If you’re already engaged in an accident debacle, you can easily apply the solutions this read provides to lower your rates.

This content is brought to you by Roxanne Capps.

Photo: Shutterstock

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