There are a number of things that impact people’s auto insurance rates, including but not limited to speeding tickets, age, gender (males are more expensive to insure because they get the most tickets and into the most accidents), where the driver lives (highly-populated areas are prone to more vandalism, break-ins, and auto thefts), and accident history.
Accident history? Yes, if a driver causes a car crash and it is determined that he or she is at fault for the accident, it can impact their auto insurance rates. “Does that mean that a driver’s car insurance is guaranteed to increase if they cause an accident?” As a matter of fact, no. Just because a driver causes a crash, it does not necessarily mean that his or her rates will increase automatically – that is a common misconception.
Rate Increases After Accidents
Hopefully, you will never cause a car accident, but accidents happen and that’s why everyone is required by law to carry auto insurance. If you do cause a crash, your rates shouldn’t increase automatically. If they do increase, it will most likely happen when it’s time to renew your policy. But rates don’t always increase because of an accident.
If you cause a fender-bender or a minor accident, your rates may not increase, especially if you have a very good driving history. If you’ve been a safe driver for a long time with no insurance claims, your good driving record may work to your advantage. Meaning, your premium may not increase.
You may want to find out if your insurance policy offers “accident forgiveness,” which rewards drivers with safe driving records and looks at their driving record as a whole if they do have one crash.
When Rates Do Increase
While your rates may not rise if you’re in a fender-bender, they more than likely will increase if you cause a serious car accident. If you’ve been enjoying a good driver discount because you were claim-free for years, losing that can also cause your insurance rates to hike. If your rates do go up, the best thing for you to do is practice safe, accident-free driving and to avoid moving violations.
Next: How Do I Talk to My Insurance Company After a Wreck?
To file a car accident claim in Columbia, South Carolina, contact the Law Office of James R. Snell, Jr., LLC today.