Will My Car Accident Make My Insurance Go Up?

We all fear car accidents even, when they’re very minor, because we don’t want our car insurance rates to skyrocket. But a fender bender doesn’t have to be the demise of your low insurance payment. While different insurance companies vary, they usually consider a number of factors before increasing your rate.

How severe was the incident?

Every claim filed with an insurance company is different, and most insurance companies treat them that way. The severity of the accident and the cost of the claim ultimately determines whether the claim will increase your rate. Having to replace a shattered windshield is much different than a repair from a major at-fault collision.

How’s your driving history?

If you’ve been driving for 20 years without a ticket or an accident, it is likely that a minor fender bender won’t impact your insurance rate at all. Safe drivers save insurance companies thousands of dollars per year, and they reward safe drivers for doing so. They also reward loyal customers, so if you’ve been with a company for quite a while they may just cut you a break.

Who is to blame for the accident?

Car insurers aren’t out to charge you for bad luck. If you were involved in an accident that wasn’t your fault, chances are they won’t raise your premium. On the other hand, if you cause an accident you may see a rise in your insurance rate.

What are your policy’s details?

Many insurance companies offer accident forgiveness for small claims, even if the accident was your fault. Accident forgiveness allows you to file one or more claims without raising your rates. Not all companies offer this so always check your policy’s details to learn exactly how your insurer handles accident claims.

Photo courtesy of Megapixl.