A car accident can damage your vehicle and harm you. Also, it can damage your auto insurance premium. If you will be involved in an at-fault bodily injury or expensive property damage accident, you could see a significant rise in your insurance rates. It is hard to predict the possible increase in your auto insurance rates after a car accident. But, insurance companies will see it as a red flag if your driving record has an accident or a moving violation. That is why they may offer your car insurance rate higher than they do with others.
The amount your auto insurance rate will go up depends on several factors such as your insurance provider, your location, a history of accident or moving violation, and your age. Typically, young drivers pay the most following an accident since insurance companies consider them as possibly risky customers.
Reasons Insurance Rates Increase Following a Car Accident
Companies that offer insurance do not increase their rates to punish their customers. Rather, they adjust their rates after a crash to reflect the new data given to them. Once they know a customer drives recklessly, they perceive them to be a riskier driver. And the provider will pass this risk on to this customer through higher premiums. But, such an increase in insurance rates is just temporary. The majority of rate increases will stop after a few years.
Those who see an increase in their policy rates following a car crash can consider obtaining quotes from other providers like Miway, so they can lower their premium. Also, they may have to shop for a new policy since every company factors rates following a crash differently. But, the new company can also see the customer’s claim and the amount paid out, then charge accordingly.
Offsetting the Increase
Even if your auto insurance rates will increase after a car accident, you can also consider ways to lower them. Even if you won’t be qualified for your insurance provider’s accident forgiveness program, you can still lower your rate after the implementation of a surcharge. Just ask your provider how to offset the increase. You might qualify for discounts like driving fewer miles, depending on the offers you can take advantage of.
Moreover, you can lower your insurance rate by improving your credit. Always stick to your spending budget and pay your debts responsibly. It can also help to increase your deductible to lower your premium.