Getting into an accident is a nightmare for everyone. Not only because it causes property damage and result in injuries, but it also leads to a spike in the premiums for car insurance. This hike in premiums becomes a point of concern for many. If you are reading this write-up and have got into a crash or someone you know who recently did, we hope and pray that everyone is doing well. However, we hate to reveal that even though you would want to forget about the incident, it will remain in your driving history, and you will get an expensive quote when you would be going to renew your auto insurance the next time.
At this point, there would be many questions circling your mind. For example, how much cost will increase, when does car insurance go down after accident, how to lessen your premium, etc. Worry not, because we have covered all of these major pointers to give you a complete overview of what will happen and how your insurance policy would work after the mishap.
How an accident will affect your insurance premium rates?
Above, we told you that your insurance premium rates would go up. Now the question is, how much will you be paying. There is no accurate number to it. It is because; insurance policy rates differ from company to company and individual driving history of the driver. Apart from these two major factors, there are other minor aspects to consider as well. It includes the age of the driver, the experience of the driver, and much more.
However, typically we have noticed an increase of as much as 32% in the premiums after an accident. Well, this is still a huge amount. This increase can be very heavy on your pocket. Nonetheless, regardless of if it was your fault or not that caused the collision, you must expect a rise in premiums.
When does car insurance go down after accident?
Up until now, we discussed to what extent your premiums could go up after a collision or a crash. Now let’s discuss when you will be free from the misery. You know that the insurance policies depend from person to person and from company to company. However, when it comes to a decrease in premium rates after an accident, the state decides that.
For example, if you get involved in a minor accident in California, it will be on your record for three years. Furthermore, if the collision has caused major violations, caused a fatality or injuries, and has done property damage worth $1,000, regardless of if it was your fault or not, your driving history would be stained for ten years. It means that if you live in California, you will have to pay increased premiums for three years if you get into a minor crash and for about ten years if you involve in a major collision.
Similarly, in Florida, minor violations and crashes stay for about three to five years, and major can stay for a longer period. However, if you caused a crash while you were drunk, you may have to pay increased rates for the rest of your life, because this kind of collision stays for about seventy-five years on your driving history.
Moreover, if you wish to check the details and need further information regarding insurance rates after an accident in your state, visit the website of the Departments of Motor Vehicle and checkout there.
If you are wondering what if it wasn’t your fault, will you still be liable to pay increased premium rates? It varies from state to state. As in around twelve states of the US, you will have to pay an increased amount regardless of if you were at fault or not. It is because, whenever any native from these states gets into an accident, they make a claim from their policy, which means the insurer pays for the property and medical damage in any case. However, in a few states like Massachusetts, the insurance company cannot increase the rates legally until you are proved guilty of more than 50% for a crash.
How to keep your insurance rates lower even after an accident?
Even after knowing the fact that you would be paying increased premiums after getting into an accident, you can’t sit and blame your fate. There are ways you may be able to lower the rates. If it gives you hope, then apply the following tips to succeed.
Firstly, inform your insurance company about the accident, regardless of how small or big it was. Secondly, some policies have an accident forgiveness clause in them, check if that is in your policy. Thirdly, instead of renewing the policy with the same company, get quotes for a new policy. Fourthly, increase your deductibles and be vigilant about discounts. Moreover, take a driving class because some companies give you better discounts on the certificate.
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