No one tries to get into a car crash. That is why it is called an “accident!” Yet for thousands of people every single day, it happens. Once you are sure everyone is okay and the dust has settled, you have one question on your mind “How is this going to affect my car insurance premium?”.
The main worry for a lot of California drivers is a rise in their insurance rates following an accident. It makes sense that the repercussions of being at fault would include a rise in a person’s insurance premium. If the driver is not at blame, what then?
We compile a list of frequently asked inquiries about insurance prices and auto accidents in order to address these and a few more queries.
Table of Content
Why Do Car Insurance Rates Increase After Accidents?
At-fault Accidents
No-fault Accident
Comprehensive Claims
How Much Does Car Insurance Go Up After an Accident?
How Long Do Accidents Affect Insurance Rates?
What to Do to Lower Insurance Rates
Fast and Flexible Auto Insurance
Why Do Car Insurance Rates Increase After Accidents?
If you are in an accident and make a claim, many insurers could increase your premium. Depending on the accident type and insurer, the precise premium rise will change. Numerous insurers provide accident forgiveness programs, which prevent rate increases after specific sorts of accidents, such as your first accident, smaller accidents, or an incident when no one was at blame. These are some types of accidents that will increase your insurance:
At-fault Accidents
Your insurance premium will almost always go up if you cause an accident. Usually, insurers would charge extra for an accident if they were at fault. However, if the damage is below a specific threshold in some jurisdictions, your insurance may not increase your premium as a result of the accident. After a set number of years, your insurance provider will stop billing you for the accident (the length varies by insurer and state).
No-fault Accident
Even though it may seem unfair, in some jurisdictions, accidents that weren’t your fault can nevertheless result in a premium hike. They might not cost as much as accidents where someone was at fault, though. Not-at-fault accidents appear on your driving record for a specific amount of years, much like speeding tickets and the majority of other infractions (the length varies by state).
Comprehensive Claims
Theft, vandalism, fire, broken or chipped glass, striking an animal, and natural disasters are all included in comprehensive claims. They could increase your insurance rate and are kept on your record for a number of years (varies by state). However, since you have no influence over these, insurance companies might not increase your rate as much as they would in the case of an accident if you were at fault.
How Much Does Car Insurance Go Up After an Accident?
If you are worried, you are not alone. Most people fear their rates will be hiked up after an accident. In fact, this is the number one reason people attempt to hide the fact that an accident occurred from their car insurance provider. And sorry to say, these fears are not unfounded.
When a driver is involved in an accident that results in injuries, the rates for their auto insurance policies do rise on average by about 46%. The precise rate rise, however, will depend on a wide range of variables. For instance, the average pace of rate increases varies per state. In California, the average rise in money terms is $585, and the average gain in percentage terms is 69%.
The insurance company, who was at blame, the driver’s past driving records, driving experience, and the number of miles traveled can all affect how much an insurance rate increases after an accident. Therefore, the answer to the question “how much does auto insurance go up after the first accident” will vary depending on the insurer you choose.
How Long Do Accidents Affect Insurance Rates?
According to the III, your rate may stay higher if your insurer boosts your premium following an accident for which you were at fault for an average of three years. In some circumstances, a post-accident surcharge may steadily drop each year you avoid another accident.
Some insurance companies provide a discount for accident-free driving, and that discount may also be taken away following an accident. It’s a good idea to speak with your insurance carrier to find out how an accident claim can affect your premium since the length of time an accident affects your insurance might vary by insurer and by state.
What to Do to Lower Insurance Rates
Having a clean driving record is one of the best methods to lower your vehicle insurance premiums. However, below we highlight more steps you can take to save your insurance expenses:
- Shop around to find lower prices: Every insurer is different. Therefore, the key is to do your research and look into several insurance companies if you’re unsure how to file an insurance claim following an accident or how to get reduced rates.
- Your deductible can be changed: Risks associated with a lower deductible include increased out-of-pocket costs in the event of an accident. However, it will at least result in lower rates.
- Your level of coverage: Lowering the amounts of your primary coverage will lower your premiums in a manner similar to lowering your deductible. Just make sure you stick to the minimal coverage criteria set forth by your state.
- Improve your credit rating: If a policyholder has good credit, certain insurance firms will reward them with cheaper premiums.
- Buy your home and vehicle insurance with the same company: If you get two or more different forms of insurance, many insurers will give you a discount. If you have more than one vehicle covered by the same provider, you can also receive a discount. Some insurers offer discounts to loyal customers.
Fast and Flexible Auto Insurance
For many, this better, more affordable car insurance after an accident comes from Pronto Insurance. Your car insurance coverage does not need to be unreasonably priced, even if you’ve made a claim recently. If you can no longer afford your monthly premiums or simply think it is outrageous that your current company would raise your price so high, look into making the switch.
Comprehensive coverage, the kind you need to feel safe and covered while you are driving, does not need to be expensive! Get in touch with our team to help you maintain your vehicle and you on the road.
