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If I Get in a Accident – Will My Car Insurance Increase?

Your car insurance rates are based on the liability you represent to the insurance company.  Your driving history is one of the first things that will be looked at.  Also if you are currently with a company and keep on filing claims, you can count on it that your rates will go up.

car accident insurance increase

How does getting in an accident impact car insurance rates?

Car Insurance Increase And Accidents: The Facts

Accident forgiveness-This is a fairly new trend that auto insurance companies will provide “accident forgiveness” which is a clause that has you covered should you get into an accident and it will not result in a hike in premium.  But you will have to pay a higher premium for this luxury!  Not all companies provide this, however, so do ask first.

The increase varies-The rate of increase varies from one case to another based on so many factors.  The cost to the insurance company, the number of accidents you report, how often you file claims, all these points matter.  You will start to be seen as a high-risk case if you keep getting into accidents.

Recouping their costs-If you have recently been in what is an expensive accident, the insurance company will be concerned about recouping its costs and keeping its own profit stable.  Property and bodily harm will both be considered.  So your premiums will go up.  If you are under a more expensive policy, they may reduce how a bad accident impacts your premium.

Change your image-It is important that you change your reputation with the insurance company if you want to get your premiums lowered.  And, let’s be serious, do you really want to be involved in all these accidents and claims all the while?  If the risk of insuring you and your car increases with time, so will your premiums.

Car Insurance Increase – How To Stop It

Fortunately there are ways to reduce your rates.  You can enroll yourself in driver improvement classes and let your auto insurance company know about it.  If your driving skills are impeccable and rather, you have been falling victim to thefts and such, then you should consider parking in your garage, installing an alarm system, and adding other safety features to your car.  But do bring this to the attention of the insurance company.  What good is all of it if they don’t know about it?  Communication is very important in terms of your auto insurance policy.  You can also state emphatically (we do not use the word “threaten” over here, it being a bit too strong and such tactics can backfire on you!) that you are going to switch companies if they do not bring their rates down despite all the major changes you have made.

It is heartening to know that increases in auto insurance rates are not irreversible and there is much you can do to stem the damage and improve your record and standing with the company.  Bear in mind that the insurance company needs you as much as you need them.  They need and value your business. If you don’t feel valued, then you should switch companies.  Maybe some smaller company will place their faith in you and give you lower rates.  If this is so then they should be rewarded with your business and loyalty.

Thus we can see that your car insurance rates will surely increase if you get into an accident.  But you can remedy that by driving safer in the future…and don’t forget to say a prayer each time you begin a journey!

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