People always insure themselves, so as to safeguard themselves against the losses that are caused due to accidents. However, when an accident occurs, it is sure that it will increase your rates of interest. The accident may or may not have occurred due to your fault, but as per the rules, the insurance company is required to pay for it-it will have to pay for your involvement in it. The main impact of any accident is that the accident will be rated against your coverage. There are mainly three types of coverages, in the form of Personal Injury Protection, Medical Protection and Uninsured Motorist and Collision, that shall help to cover you and also the people in the vehicle when the accident occurred without any fault of yours. In case of accidents that occur due to the faults of the occupants, there are many kinds of coverages involved, that include the Personal Injury Protection, Medical Protection, Property Damage liability, Medical payments and other kinds of insurance that shall help you. There are several laws that are related to insurance claims and rise in the rates of insurance, after the occurrence of an accident. The amount naturally varies from state to state and insurer to insurer, and also a major portion depends on the nature of the accident and the severity with which the accident occurs. There are several insurance companies that believe on the fact that the first minor accident may be forgiven by the insurance company as well as the government of the state. When you are in a need to purchase an auto insurance policy it is always advisable that you ask the particular insurer about the nature of insurance that is required to be covered, and the terms and the conditions that are associated with, such an insurance policy.
When accidents occur due to faults of the occupants, the rates of insurance is bound to rise, but the rise depends on many factors. This is usually reflected at the time of renewal of the policy, when the insurance company charges certain points to your account. These points are charged to your account as per the policies of the company and are usually distributed on the basis of three, five or even seven years. There are several states that require you to carry an SR-22, which is a form that is required to be carried, in case you do not have much insurance policy when the accident occurred. This is an expensive rate and in order to get an SR-22, you will be required to spend a lot of money. This form is required to be carried, for three years, whether or not you own the vehicle. Different Insurance companies follow different kinds of policies, for increase in rates after the occurrence of an accident. There are many companies that check the previous records of the customers, and where customers have a good record and have been with the company for more than a certain period of time, the company does not bump up the rates, in case of minor accidents