Will An Accident Increase Your Car Insurance Rates?

Car insurance can be one of the costliest parts of owning a car. Even if you only need basic coverage, you may be paying hundreds of dollars a month to get the insurance required for driving a car in your local area. That’s why many people worry about their car insurance rates after an accident.

An accident can cause an increase in your insurance, but that’s not always the case. In some states, you can take a defensive driving course which would help to reduce your insurance and remove points from your license after an accident.

Even if your insurance rates increase after an accident, they will not stay high forever. Insurance companies will reduce the rate over time, as long as you keep your driving record clean. So, if you can avoid getting tickets or having another accident for a year or two, then you should see your rates going back to the pre-accident level (in case you plan of going to another company, you can get cheap car insurance quotes online to help).

If you have another accident, then you can expect your insurance company to increase your rates and in some cases, they may even drop your policy. In order to keep your policy in good standing and at the lowest rates possible, you must learn how to drive safely.

If you’re in an accident that is not your fault, then your car insurance rates will not increase. For example, if you were stopped at a light and someone hit your car from behind, then they are liable for the damages. Your insurance company will not increase your rates since you are not at fault for the accident.

You must report any accident to your insurance company for your own protection. This will ensure the person who you were in an accident with or the property you damaged, cannot try to sue you directly. Even if your insurance rates go up, you should report all accidents to your insurer, for your own financial protection.