How Does Your Auto Insurance Change After an Accident?

If you’ve been in a car accident, you may be wondering how it will impact your auto insurance rates. In most cases, your rates will increase, but the amount of the increase will depend on a variety of factors.

One of the biggest factors that impact your auto insurance rates after an accident is the severity of the accident. If the accident was minor and didn’t result in any significant injuries or damages, your rates may not increase at all. However, if the accident was more severe and resulted in significant damages or injuries, you can expect to see a substantial increase in your rates.

Another factor that can impact your rates after an accident is whether or not you were at fault. If you were not at fault, you may be able to avoid a rate increase altogether. However, if you were at fault, your rates will likely increase significantly. The amount of the increase will depend on your insurance company’s policies and the severity of the accident.

Your driving record can also impact how much your rates increase after an accident. If you have a clean driving record with no prior accidents or moving violations, your rates may not increase as much as someone with a history of accidents or traffic violations. Insurance companies often offer discounts for safe driving, and a clean record can help you qualify for these discounts.

Finally, the type of coverage you have can impact how much your rates increase after an accident. If you have liability-only coverage, your rates may not increase as much as someone with comprehensive or collision coverage. Liability-only coverage only covers damages and injuries you cause to others, not yourself or your own vehicle. Comprehensive and collision coverage, on the other hand, covers damages to your vehicle, regardless of fault.

If you do see an increase in your rates after an accident, it’s essential to shop around and compare rates from multiple providers. Different insurance companies may have different policies when it comes to accidents and rate increases, so it’s important to shop around and find the best possible rates for the coverage you need.

In some cases, you may also be able to take steps to lower your rates after an accident. For example, if you take a defensive driving course, some insurance companies may offer a discount on your rates. Additionally, you may be able to raise your deductible to lower your monthly premiums.

Ultimately, the impact of an accident on your auto insurance rates will depend on a variety of factors, including the severity of the accident, your driving record, and the type of coverage you have. While you can’t always avoid an increase in your rates after an accident, shopping around and taking steps to lower your rates can help you find the best possible rates for the coverage you need.