How does a Car Accident Affect your Car Insurance Premium?

August 15, 2014

How much will your insurance cost if you have an accident? This will depend on many different factors.

How does a Car Accident Affect your Car Insurance Premium?

If you’re been in a car accident, one of your first thoughts (after making sure that everything and everyone is okay) is probably how much the accident will cost you.

car accident

Many people worry about how their car insurance rates will change once they’ve had an accident.

There are a number of different ways that a car accident can affect your insurance premiums and a number of different factors that determine how much your premiums will increase after an accident.

One of the biggest ways that an accident can affect your car insurance costs is if you have an at-fault accident.

When there is an accident, the insurance company looks to see who is responsible for it.

This is determined in a number of ways. In a single-car accident, the driver of the vehicle is always considered at fault if he or she files a claim with the insurance company.

If a driver is in a collision with one or more other vehicles, it becomes more difficult to determine who is at fault.

In situations where you are the driver who rear ends someone, makes an unsafe lane change or is deemed at fault by the police, then your premiums will certainly increase.

Note that, in some accidents, more than one driver can be considered at fault.

Many people assume that “no-fault insurance” means that the insurance company will not place fault for the accident on any driver. This is not true.

What no-fault insurance means is that if you are injured or your car is damaged in an accident, you will deal with your own insurance company. You do not have to contact the other driver’s insurance company to collect money.

How much will your premiums rise if you have an accident?

The amount of the increase will depend on several factors and will differ for different people and different insurance companies.

Factors that the insurance company will consider include:

  • The severity of the accident
  • Who was at fault for the accident
  • If you are statistically more likely to get into another accident
  • Your driving history
  • If there are any criminal charges or tickets handed out in connection with the accident
  • And several other factors

It’s important to note that not all accidents will cause your premiums to go up. Very minor accidents may not lead to an increase in your premiums, especially if you have a good driving record.

In addition, some insurance companies offer “accident forgiveness” to customers who have good driving records.

Most companies will allow you one accident without raising your insurance rates. However, if you have a second accident, the insurance company will then raise your rates.

Accidents stay on your driving record for quite some time and many insurance companies take at-fault accidents into account for several years.

This varies by the company, but the average is between six and ten years. This means that an accident could raise your car insurance premiums for a very long time.

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