Car accidents are one of the surest ways of increasing your premium and they can haunt you for many years afterward.
In terms of car insurance, premium increases are likely but not necessarily inevitable. How much your premiums increase, if they do increase, it depends on a couple of things:
- Accident Factors: The severity of the accident and whether you are at fault or not. Though you might be found blameless, your insurance company could still raise your premiums. Having an accident with bodily injury is more likely to raise your rates than one with just property damage.
- Driving Record: The worse your driving record, the more your insurance company is going to identify you as high risk. Black marks on your driving record usually stay on your driving record for about three years.
- Insurance Company: Whether or not your rates rise after an accident will largely depend on your insurance company. Some may forgive an accident that isn’t your fault while others may raise rates automatically. It will also depend on whether you are in good standing with the company.
- Previous Claims: If you make frequent claims then having an accident will more than likely raise your rates. The best approach is to only make claims when absolutely necessary.
Accidents impact more than the obvious things like insurance rates, driving records, and property, they also impact our lives in the form of physical and mental well-being and their effect can linger for years afterward.