How Accidents Affect Auto Insurance

After the traffic is cleared, the dust settles and you check everyone for injuries, the first thing most people wonder about following a car accident is how the claim will affect their insurance. Many motorists don’t bother to read the fine print in their auto insurance policy until after an accident. The best way to avoid costly claims is to be familiar with your policy before you have need for it.

Some insurance companies do not treat all accidents the same, while others will lump a fender bender in with a major collision. While claims affect different drivers and policies differently, there are a few general rules regarding car accidents. A fender bender for a diver who has an otherwise clean claims record will probably not increase the premiums. However, if that driver was previously enjoying some sort of safe driver discount, the insurance company will most likely remove those savings.

If the other driver was at-fault for the crash, the premiums will also unlikely be affected, regardless of the severity of the accident. Even if you, the policy holder, is at-fault, some insurance providers show forgiveness for a single collision if your record is otherwise unblemished.

For drivers with a history of major claims or one who has many tickets under their belt, even a minor bump in the road can cause major premium increases. The more infractions and crashes on your record, the more likely an accident claim will affect the price you pay for insurance. Your driving history follows you around longer than you’d like. Insurance companies usually factor in the severity of the accident and the cost of damages to determine the increase and the length of time you’ll be subject to higher rates. In many states, the surcharge will be lowered gradually over the span of 3 years until it’s nonexistent as long as you avoid another accident.

No matter what kind of driving history agents at Gallant Insurance can help. We will locate you a number of quotes from a variety of insurance companies to help you compare coverage and costs. We can even assist you in filing a claim, and explain how that claim may affect your premiums going forward. Contact us to help you find the best coverage at the most affordable rates.

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