Will your car insurance premium cost go up after an accident?

What happens to your auto insurance rates when after you crash your car?

You gotten in a car accident and wondering if your car insurance premium will go up. Well, that depends on a number of factors. Here we have collected some helpful principles on whether your car insurance may or may not increase after a car accident.

#1 What is your car insurance company?

Your car insurance company plays the biggest role in whether your car insurance premium will go up or not. The reason for that is because your car insurance company takes on your risk each month. If you car insurance company say it is now more expensive to insure you, you are stuck it that. (not every car insurance is the same) Where one car insurance company will only take on about 10% premium surcharge after an accident, another car insurance company may not do anything to the premium. Below are other factors that influence the car insurance company decision to increase or not increase your insurance premium.

#2 Was the car accident your fault?

Another big factor if your car insurance premium will go up after the accident is whether the car accident was your fault. IF you caused the car accident and the damages are over your deductible (usually $500-$1000) an increase to your premium is most likely. How much the increase cost of your car insurance premium depends on the severity of the damages, injuries, and your car insurance company. In most cases the increase is about 10% increments and it may last for 3 years.

Also, the consideration of “At Fault” sometimes may be determined by the percentage of fault. If you are 30% at fault of the car accident and the other person was 70% at fault. Your car insurance premium may not increase because you at fault for 30%. Your state will mandate whether “At Fault” percentages.

It is also possible that your car insurance company may increase your premium rates even you were not at fault. If this happen here are some of the factors how your car insurance determine the increase. For example, the number of claims you made, the frequency of your claims, the severity of the claims, the cost of your claims, and how long you been with your car insurance company.

#3 Accident forgiveness insurance and discounts

If you never got into any accident or tickets and never have made any claims, you may be getting your good driver discount right now. However, if you got into a car accident and you are at fault, you will probably have your good driver discount eliminated.

A lot of companies now are offering “accident forgiveness” this is a new approach to win your business and many new car insurance companies are offering this. This feature allows you, the car insurance holder a “free” first accident where the insurer will not surcharge you for an at fault accident. Also keep in mind that you will have to pay a little extra for that feature. They may also have other additional limitations on the “accident forgiveness” feature, so read your policy carefully.

#4 What can I do if my car insurance premium increase or other surcharges?

For some reason you should feel you are getting an unjust premium increase, you may appeal to your state’s department of insurance. That may reflect badly if your car insurance is up for renewal and you don’t want to cancel your car insurance policy with the company. Only appeal to your state if you are sure you are 100% innocent.

Also, an easier way to do without having the trouble appealing to your local state’s department of insurance is to shop around for new car insurance. You can still save money even you have an at fault accident with another car insurance company with the same coverage. Just make sure if you do have any accidents or tickets, make sure you tell the other car insurance company the truth. If you don’t, and they find out, that car insurance company may cancel your policy.

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