Avoiding Business Conflicts

Will Your Auto Insurance Rates Increase After An Accident?

by Arthur Bates

Following an accident, there is a possibility that your auto insurance rates will increase. Whether or not they actually do depends on various factors, including if you were at fault for the accident. If you were involved in a car accident, here is what you need to know.

Will Your Rates Increase?

Each insurance company has its own policies regarding increasing rates following a car accident. For instance, some companies will increase your rates regardless of who was at fault under certain situations. If you have filed several claims in the past, you could be considered a higher risk to insure and your rates could increase.  

Alternatively, some companies will not raise your rates if you are not at fault. In this instance, you were obeying the rules of the road and the company likely feels you should not be penalized for doing so.  

The most important thing to consider when it comes to possible rate increases is that reported accidents go on your driving record. When evaluating your driving history to determine your rates, an accident could mean an increase in your premium. The length of time the accident remains on your driving record depends on the state in which you live.  

Following an accident, the insurance company will notify you in writing if your rate will increase. If it does, there are several things you can do to potentially lower your premium.  

What Can You Do?

Before it is time for your insurance policy to be renewed, you need to find a way to make a more favorable impression on the insurer. One way to do this is to take a driving class. Even though you consider yourself to be an experienced driver, the fact that you had a car accident makes you a higher risk to insure. You can reassure your insurer you are committed to safe driving by taking a refresher course.  

You also need to reassess your policy and look for possible changes you can make to the policy to save. For instance, if your car is older, you can get rid of the collision and comprehensive coverage. Regardless of the age of your car, you could also increase the deductible to save. Before dropping it, check your finances. You want to be able to cover the deductible if you are involved in an accident. 

Talk to your insurance agent about other ways you can possibly save on your coverage after being involved in a car accident. For more information, contact companies like Metropolitan Insurance Service Consultants.