Car accidents can affect your car insurance in many ways. Your car insurance can hike to alarming levels if you have caused a serious accident.
Let us explore the trends about how the car insurance changes after an accident.
Car accidents can be of two types. The first type is where you are at fault and the second type is where the other driver is at fault.
- At-fault accidents: accidents can be minor, medium or major. A minor accident where the opponent’s vehicle is not damaged much will not spike your insurance premium. But a major accident where significant damage can be seen on the opponent’s car is surely going to hike your car insurance premium.
- Fault of another driver: insurance companies are well aware of the fact that you are not the only one driving on the road. So in case the accident is caused by another driver, your insurance premium won’t hike at all.
By what amount does the insurance hike after a mishap?
The hike in your insurance premium depends upon the intensity of the accident and the amount of damage caused to another vehicle. A minor accident may raise your premium by 11 % whereas a major accident can hike your premium by 92%. Car insurance premium hikes also depend on geographical location. In an area where accident rates are not high, your premium won’t hike much whereas in an area where accident rates are higher, your premium will hike to unimaginable levels. Refer to https://www.americaninsurance.com/ to gain more key-insights regarding the same.
What factors do the companies take into account while increasing your insurance premium?
The insurance agencies take the following factors into account while raising your insurance premium.
- Who caused the accident: this is the most vital factor they consider while hiking your car insurance premium.
- Previous safety record: drivers who have maintained a decent safety record are saved from hefty premium raises. Their premium increases by small levels.
- Experience of driving: experienced drivers are often saved from the horror of paying hefty insurance premiums. Their car insurance rises by a small amount depending on the company’s policy.
- Claims history: if a person has made a lot of claims in the last few months, the insurance company is ought to raise his premium. Hence, a claims-free history saves you a huge amount of money.
Having discussed all the factors hiking car insurance rates, a question arises in our mind. Is there any way to ensure cheap car insurance after an accident claim?
Let us look at the detailed ways of ensuring cheap car insurance after an accident claim.
- Raise your deductible: in case your insurance agency hikes your car insurance premium, you can lower it significantly by raising your deductible. By increasing your deductible by a small amount, you can reduce your insurance by 20-30%. But this is only advisable to people who have not involved in numerous car accidents lately.
- Brief your insurance agent about the accident thoroughly: it is always advised to tell each and every detail of the accident to the insurance agent. Never try to hide anything or you will land yourself in trouble. In case you don’t tell about the accident to your insurance agent and the other driver sues you weeks later, you can definitely expect your premium to hike heavily.
- Check for an accident forgiveness clause in your car insurance policy: many insurance companies have an accident forgiveness clause in their policies for minor or medium accidents. You can take good advantage of it. The clauses vary from company to company.
- Try changing your insurance policy if you are unsatisfied with the current one: if you are not happy about your current insurance policy, you should consult an agent and look for new policies in the market offering more advantages. This is one of the best ways to ensure cheap insurance after an accident claim.
- Keep an eye on various discounts: insurance companies host seasonal and annual sale where they sell some of the best car insurance policies at a substantially lower rate. Stay in-touch with an agent and always keep an eye on upcoming discounts on car insurance policies.
- If you have been a long-time customer, ask your insurance agency to reduce the hike in your premium: many insurance agencies often consider the requests of their long-time customers. Sticking with the same insurance agency for years can surely help you to reduce the hike in your insurance premium after an accident claim.
The above-mentioned steps can be taken in order to ensure cheap car insurance even after an accident claim. It is necessary to prevent a significant hike in your car insurance to save some money.
Refer to American Insurance to gain more and detailed information on how to ensure cheap car insurance after an accident claim. Also check-out their reasonable and economical car insurance policies.