If you are like millions of others concerned about your premiums, you might be wondering how accidents affect auto insurance. Accidents can have an impact on your policy in many different ways and sometimes not at all. Ultimately it all depends on the circumstances and details of the collision. Various factors play a part, so it is a good idea to be aware of them.
Accidents are usually classified according to the individual at fault. If you, the policyholder, are considered to be at fault, the chances of your rates increasing are high. This will usually take place when you renew the policy. However, some coverage providers will not increase your premiums if it is the first incident where you are responsible. In addition, the percentage increase in rates will depend entirely on the insurance company you are with.
If the accident was completely unavoidable and is not your fault, your premiums will most like remain unchanged. It is extremely important to keep a good record of events and all paperwork involved. This is especially helpful if you ever decide to change providers in the future.
The amount of damage caused is another major factor taken into consideration. Usually insurance companies set an amount they consider to be significant in value. If the damage caused falls under this amount then you should not worry about your rates increasing. The opposite is true if the value of the damage is higher than the set limit.
Whether anyone was injured or not during the accident will also have an impact. When injuries are involved it can have negative repercussions, resulting in raised premiums. In a situation where there is no bodily harm, always make certain you provide copies of police reports and evidence that there were no medical payouts as proof.
How many previous accidents you have had, whether or not you were under the influence, if a citation was issued, and who was driving the car at the time of the collision, are all factors that will influence your premiums. There are always going to be exceptions, so it really depends solely on each incident.
Keep the above factors in mind when out on the road, always travel safely and take the necessary precautions. For further information on how accidents affect auto insurance, consult a representative of your coverage provider. Remember, the more accidents you have where you are at fault, the less likely a company will be willing to renew your policy.
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