Having car insurance is not only mandatory in most states, it can also be an outright lifeline. But there are times when the car insurance can hurt you? It can not affect you physically, but it can affect your portfolio, especially after you got in an accident. We took a look at some factors that may influence why your car insurance premium increases after an accident.
There are no set rules
Generally, when you file a claim with your insurance company, you must be mentally prepared for your premium to go up ; however, there are many caveats because policies may differ from company to company. For example, a number of insurance companies such as Allstate and Geico, have accidents discount programs, which help to "forgive" your first at-fault accident and avoiding penalty premiums. Other companies that do not offer these programs can choose to provide informally clemency to customers who have been great in the long term drivers. Do not be at fault can further protect against premium increases that might otherwise occur, however, none of these things are infallible safeguards against premium increases if you are involved in an accident.
Another factor in determining your insurance rates after an accident is where you live, your state may influence how and when your premiums could increase. For example, New York prevents companies to raise rates in the case that you have full coverage, the damage is less than $ 2,000 and there were no injuries or deaths. On the other hand, Massachusetts allows your premium to rise for most officials accidents that are $ 500 or more above your deductible.
Since there are not set rules to increase premiums, be sure to check with your insurance company to see what standards may or may not you based on your location and the company policies.
The size of the accident has not always matter
Find yourself in an accident with just minor scratches or car? You might be thank your luck, but you can not always be completely won. Even if damage to any part is negligible, the fact that there was an incident at all means your premium could increase. If the accident occurred in a visible intersection and you receive a citation or a police report is filed, your insurance company is likely to experience anyway (even if you do not report, which is never a good idea ).
Although the severity of the accident may have a slight impact on your rates, it is not the only factor, as the probability of your rate changes also depends on the other parties involved in the incident. Even if you think the accident is minor and not worth the report, the other party may not feel the same way, and they are also entitled to file a police report or insurance claim if they feel they have any kind of injury or vehicle damage they can request - no matter how small the damage might be. As such, it is always better to file a police report and an insurance claim, do not do can hurt more than help you move forward.
Is there a way to get a better rate?
As noted above, even do everything in your power to keep your premium low may not save you the increase because there are certain policies and factors that you can not control. In fact, if you've been in an accident before, you may find yourself stuck with a higher premium, some insurance companies have justified this by stating that statistically assured that previous accidents are more likely to enter future accidents. The policy of your insurance company is, as mentioned above, influenced by the state you live in, but your own driving record and history will in many ways influence the way the policy you affects long term.
If you are in an accident, you are not in the best position to negotiate insurance rates. That said, if your insurance company increases your rates after you get in an accident (or any other time), you will at least want to call and get the reasons why the change was made. See if there are ways to reduce the rate, and if you are not having any luck, you can still shop for a new car insurance provider - just make sure you do not cancel your plan until you sign completely to another supplier.
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