Will my Premium Change if I Have an Accident?

If you are like most drivers, you want to be conscious of the events and incidents that can impact the rates that you pay for car insurance. There are lots of different things that could affect the rates you pay each month, and being involved in an accident is one of these things. Some car insurance providers will have specific instructions in their policies that stipulate how they will deal with accidents and determine insurance rates. Others will not, so you will have to discuss this at length.

The easy answer to this question is that your premium rates are not likely to go down if you are involved in an accident. If your insurance company has to pay out some money because you are involved in an accident, then they are going to have to draw on their resources. This can put a real strain on a company, so they will not be looking to lower the rates of their customers. You may be able to find other ways to get a discount, but getting into an accident is more likely to cause an increase in premium rates.

When You Are At Fault

If you are at fault for an accident, then it is likely that your car insurance company is going to have to pay out a lot of money. If you just have liability coverage, then your provider will likely have to pay for the damages that you cause to another person's person or property. This can add up to thousands of dollars in some accident. If you have other coverage that protects you and your vehicle, then your insurance provider might have to pay out a lot more money.

When you provider has to pay out all of this money, this can be really bad for them financially. As such, they cannot really afford to lower your rates at all. In fact, it's a good possibility that they are going to raise your rates significantly. It all really depends on what kind of accident it was and how much damage was done. Your provider may have a clause in your policy that states just how much your rates will increase if you cause an accident and have to make a claim. Check this out thoroughly to find out about any increases in your premiums.

When Someone Hits You

If you are involved in an accident that is not your fault, then you may not have to pay increased fees at all. A lot of providers understand that you do not have control over the actions of other drivers. In most cases, your provider will seek compensation from the insurance provider of the driver who caused the accident. This means that you won't have to pay for the damages and you will be off the hook in the eyes of your insurance provider. Not all providers operate this way, so make sure that you ask when you sign up for a policy.

Decreasing Your Premiums

The best way to decrease your premiums is to avoid car accidents since there is ususally a change in premiums after accidents. Most car insurance providers are going to reward responsible behavior and keeping away from accidents is one of the best ways to prove that you are a responsible driver. The longer you go without being in an accident, the more more you are likely to save on your premiums. Take some defensive driving classes or other driving courses that will help you be more vigilant out on the road. You can really end up saving a lot this way.

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