Being in a car accident can leave you shaken up, but fortunately that feeling will slowly wear off over time. Unfortunately, the next time you open your car insurance bill, you may be shaken all over again.
Once you’ve reported an accident to your insurance company, your rates may increase. The increase will depend upon a few factors including the severity of the accident, damage incurred, who was at fault, and your driving history.
If you were not at fault, your insurance company may not choose to raise your rates. However, if you’ve had several accidents, even no-fault, you may see a rise in your bill.
If your insurance rates do go up, you may see anywhere from a 3% to 50% increase over what you were paying before the accident. This is a wide range because there is no way of knowing the true figure without knowing the specific details of the accident and your driving record. Your agent can give you the exact figure.
While an increase in your car insurance rate may be inevitable, there are a few actions you can take to keep them as low as possible. Some insurance companies offer Accident Forgiveness where they will overlook your first accident and leave your premium alone, however every company is different so it’s important to ask your company how that works. You can consider increasing your deductible – the higher the deductible you choose, the lower your premium will be. Drop unnecessary coverage if your car is older. You can see if your insurance has other discounts like good students, higher levels of education, packages if you bundle, and multiple drivers. Take a driving class! Many insurance companies will lower your rates if you attend a safe driving class and it’s a good opportunity to sharpen your skills and remind yourself exactly what the laws are.
You can always shop around – not all insurance companies are the same and some will hold an accident against you more than others. With the right knowledge of car insurance providers and policies, you should be able to keep your rates low enough that you can get back on the road after an accident!
If you have any questions about your collision repair, call one of the member shops of Your Hometown Body Shop today!