How much do car insurance rates increase after an accident?

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An accident happens in the blink of an eye, but has long term effects in many ways. You need to recover from your injuries. You need to get the car repaired. Take care of the bills and the mountain of payments and whatever! However, there is another aspect to consider: the amount of the premium or the insurance rate.

Statistics show that the insurance rate can double after an accident. Although not immediately obvious, you will notice the increase when renewing the policy for the following year. Finding another insurance company is not always the right answer. The insurer will always go through your driving records and find the accident.

So how can you deal with it? Is there a way to minimize the negative impact of an accident on the insurance rate? How to find cheap car insurance after an accident? Let’s find out.

How does an accident affect the cost of care insurance?

According to Forbes Advisor, an accident will have a direct impact on the amount of the premium. Insurers have increased the rate from 21% to 73%, depending on the state and the insured. For example, California has the highest increase in accidents/collisions with injuries while Wyoming has the lowest (but the spike cannot be avoided).

The average increase in insurance rates is about 50% in the United States. That’s a lot of money to spend on car insurance! Another finding is that insurance rates are higher for at-fault accidents with bodily injury than for those with property damage. Other factors that determine the increase in the insurance rate are the driver’s age, driving history and the reason for the accident.

Cause/reason for accident

Insurance rates will surely increase if you are at fault. However, the actual percentage will depend on such matters as whether anyone was injured in the accident, property damage caused by the accident, and the cost of medical bills.

But what if the accident is not your fault? What if it was because of an uninsured motorist? The supplement may or may not increase. It depends on how much the insurer pays for your bills and what state you reside in. When you file insurance claims even though you are not at fault (injury protection), the insurance rate is most likely to increase.

Also, insurers don’t always rely on the black and white image. Sometimes an accident is caused by both parties. Insurance companies will analyze the details of the accident to see how much you are at fault (10%, 30%, 60%, 90%, etc.) and increase the surcharge accordingly. You may also need to provide proof to the insurer that the accident was not your fault.

Your previous driving record

If there is no history of traffic accidents, collisions, speeding tickets, etc., in your name, the insurer may not increase the insurance rate or not do it only lightly. However, if you have already been in an accident and you have applied for it, the insurance rate will certainly be high because the insurer considers you to be a high-risk customer.

Also remember that an accident will be reflected in your record for three to five years. Your premium is likely to be higher during this period. It will decrease over time if you don’t have another accident.

Material damage due to accidents

The increase in the insurance rate for property damage (but not bodily injury) depends on the extent of the damage. For example, if the cost of property damage/repairs is less than $700, there may be no surtax increase (or the increase may be less). However, if the damage exceeds $2,000, there will be a certain increase in the insurance rate. The percentage is usually determined based on the extent of damage the accident caused to the property.

What is accident forgiveness?

Accident forgiveness is coverage that prevents the policy premium from increasing even if you have been in an accident. There is no general or common formula for this. Accident forgiveness is calculated differently for each customer. The insurer has the right to use it at its discretion. Accident forgiveness can either waive the increase or offer a one-time discount if you have a clean driving record.

Ways to reduce the insurance rate after an accident

Here’s how you can reduce the insurance rate and premium:

  • Find the best cheap auto insurance in Nevada by contacting a reputable insurance agent.
  • Join the defensive driving program and take the test.
  • Ask for further discounts to compensate for the increase.
  • Try the insurance telematics model
  • Improve your credit score
  • Talk to more than one insurer before making a decision.
  • Understand that you may still have to pay a small additional amount than before.

Conclusion

We cannot avoid accidents no matter how hard we try. The wisest thing to do is to alert and minimize the damage in any way possible. Speak to an experienced insurance agent soon after the accident and prepare a backup plan. You can get affordable car insurance after an accident if you look for it.

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