How Does an Auto Accident Affect Insurance Rates?
Auto accidents are, unfortunately, a common occurrence throughout the United Sates these days.
The number of accidents is also on the increase, partly driven by the number of drivers that are increasing day by day.
How does an accident affect insurance rates however? The first thing that needs to be ascertained is liability for the accident; whether it is your fault, or the fault lies at the hands of the other driver.
There is a process in place which will determine this, and such work will be undertaken by the police, though will in all likelihood be communicated to each driver by their respective insurance providers.
Working on the information provided to them by the state police, the claims adjusters of each company will communicate how fees will be paid, and coverage affected.
If an accident is proven to be your fault, it is most likely that your rates will increase upon the time you renew.
There should be no immediate penalties to your rates.
However, some providers will not increase rates for a first accident, depending on the severity and cause.
However, any incidents after this will invoke penalties.
It is also worth bearing in mind that providers will unlikely allow you to renew your policies with them, should you be involved in multiple accidents over a certain period of time.
Resultantly, you can help your situation by being the most conscientious of drivers.
How accident affect insurance rates to a percentage of the fee, will vary from company to company, though you can expect this to be a minimum of 10%, and as much as 50%.
Many people assume that any accident, whether you are to blame or not, will result in higher rates on your insurance.
This is not true however; if you are proven not to have caused an accident; your rates will not be affected.
However, this does not mean that rates will stay the same; there are many other factors at work of course.
However, whether you are at fault or not, the fact that you were involved in an accident will remain on your driving record.
And whilst this will not necessarily be interrogated for periods longer than five years, it may affect rates offered to you if you try to switch providers.
Whilst this is true, the more that time passes between when the accident occurred, the less likely it is that the accident affect insurance rates that will be passed to you.
The number of accidents is also on the increase, partly driven by the number of drivers that are increasing day by day.
How does an accident affect insurance rates however? The first thing that needs to be ascertained is liability for the accident; whether it is your fault, or the fault lies at the hands of the other driver.
There is a process in place which will determine this, and such work will be undertaken by the police, though will in all likelihood be communicated to each driver by their respective insurance providers.
Working on the information provided to them by the state police, the claims adjusters of each company will communicate how fees will be paid, and coverage affected.
If an accident is proven to be your fault, it is most likely that your rates will increase upon the time you renew.
There should be no immediate penalties to your rates.
However, some providers will not increase rates for a first accident, depending on the severity and cause.
However, any incidents after this will invoke penalties.
It is also worth bearing in mind that providers will unlikely allow you to renew your policies with them, should you be involved in multiple accidents over a certain period of time.
Resultantly, you can help your situation by being the most conscientious of drivers.
How accident affect insurance rates to a percentage of the fee, will vary from company to company, though you can expect this to be a minimum of 10%, and as much as 50%.
Many people assume that any accident, whether you are to blame or not, will result in higher rates on your insurance.
This is not true however; if you are proven not to have caused an accident; your rates will not be affected.
However, this does not mean that rates will stay the same; there are many other factors at work of course.
However, whether you are at fault or not, the fact that you were involved in an accident will remain on your driving record.
And whilst this will not necessarily be interrogated for periods longer than five years, it may affect rates offered to you if you try to switch providers.
Whilst this is true, the more that time passes between when the accident occurred, the less likely it is that the accident affect insurance rates that will be passed to you.
Source...