How One Accident Affects Car Insurance

Almost every car insurance company will give a discount to drivers who haven't been in a car accident in several years. Unfortunately, the other side of the coin is true, also- if you’ve had even just a single car accident, whether your fault or not, you are more likely to see an increase in your policy when it renews. The amount of the increase will depend on many factors.

Car Accidents Increase Car Insurance

When you've been in a car accident, the factors that are taken into consideration when determining what your rate increase will be include: the state you live in, the car insurance company itself, the severity of the accident, and who’s fault it is. The highest increases in premiums are caused by drunk driving-although most insurance companies will not even cover you if you have been found to be driving a vehicle while intoxicated. You will also see higher increases if the accident was your fault, in most cases. There are a few insurance companies that might have a forgive and forget policy for a single, minor car accident that did not cost much money for repairs and/or medical payments. Allstate doesn't always raise rates in minor accidents, particularly if the person has been insured with them for several years. State Farm has a "forgive-the-first-accident" policy, which saves you from a rate increase at policy renewal time.

If the car accident you were in caused large amounts of damage, and is costly to repair, you will either be dropped at renewal time or have a large increase in your insurance premiums. Likewise if you are involved in an accident where medical payments had to be paid out for injuries that were caused by your driving. If you are dropped by your insurance company when your policy is due to be renewed, you will be able to obtain insurance with another company under most circumstances, but you should expect to pay upwards to two to three times the amount you were paying previously to the accident.

If the car accident you were involved in was minor, and you notice an increase in your premium--don't be afraid to call your car insurance provider. Sometimes if you discuss the situation with them, they may tell you they have a first-time offense policy that will not cause an increase in your premium--but it may just be a policy you have to request in order to receive the benefits of it! It will be worth it for you to call as many insurance companies as possible if this happens to you, in order to find the lowest option available to you if you are on a budget.

How to Repair Car Insurance Rate After Car Accidents

Additionally, if a car accident has caused your insurance premiums to go up, you can take steps in order to help it decrease, as well. Attend a defensive drivers education course, increase your deductibles, insure multiple lines or vehicles with the same company, etc. When rates skyrocket from an accident, you can take measures to reduce that rate- but chances are you will still be paying more than someone who has never been in an accident.