An automobile collision may only take a few seconds, but the financial consequences might continue for years. If you have a clean driving record and are involved in an accident, prepare yourself: According to Forbes Advisor research, the national average rate rise following a property damage accident is 45%, and 47% for causing an accident that results in casualties. Head over to this website to learn more.
How is your insurance affected by a car accident?
Your policy’s automobile liability insurance section covers the property damage or harm you cause to someone else. A claim against your liability insurance may result in a “surcharge,” which is the real rate rise following a chargeable automobile accident.
The fee will begin when you renew your policy (an insurance company cannot charge you throughout the policy time). You can switch insurance companies, but the new one will look at your claims history and driving record, so it will be aware of the event and adjust your cost appropriately.
Accident Severity Variations and State Laws
A rate rise can be influenced by the overall severity of the automobile accident and the expense of an insurance claim. A modest fender bender collision in the parking lot is unlikely to have the same impact as a big accident. In certain areas, your insurer cannot raise your rates if the claim is less than a particular financial amount.
How can I reduce my insurance rates following an accident?
If you have been in an accident, you are probably looking for strategies to reduce your auto insurance costs. The good news is that insurance companies often give a wide range of discounts, such as installing particular loss control measures to help lower the probability of a future claim to both good and bad drivers.
Here are a few strategies for lowering your rates:
- Bundle your insurance policies
You may be eligible for a multi-policy discount if you use the same insurer for more than one insurance product. For example, combining your house or renters insurance with your auto insurance may allow you to save money on both.
- Multi-car discount
Do you own more than one vehicle? Save money by using the same insurance for both.
- Defensive driver discount
Taking an approved defensive driving course may qualify you for a discount in some areas. This discount may only be available to people over the age of 55.
- Driver affiliations
Some insurers provide discounts for particular jobs, such as first responders, military members, and government positions, and participation in organizations such as alumni or professional societies.