So, we all know that accidents happen. Whether you swerve to avoid an animal, person, or another driver, you now have to worry about an insurance increase.
Well, this does not have to be the case.
If you are smart, you are still able to save on your car insurance, even after dealing with an accident. Because you are reading this, we can only assume you were recently in a crash, or you know someone that was involved in an accident. If that is the case, we are genuinely sorry to hear that, and we hope that no one was injured seriously. If you are reading this for fun, we are glad to have you.
We hate to bring more bad news, but after an accident, even if no one was injured, you may experience a jump in price for the renewal of your car insurance. This jump is due to companies for car insurance raising premiums on drivers that have been in an accident recently. In case you are not aware, the premium is the amount that you pay an insurer periodically to pay for your auto insurance coverage.
There is, however, a chance that you will not have any increase in your insurance premium. When you are not at fault for an accident, it is the first accident that you were involved in, and your history for driving is clear of any insurance claims or moving violations, then you may not have any increase in your premium whatsoever.
On the other hand, if you are the one to blame, or you have been involved in far too many incidents, regardless of whether or not you were at fault or not for the accident, you are likely to experience an increase in your auto insurance.
The amount of how much you will be required to pay will vary based on the company you are looking at and what the car accident’s severity is.
There may be an increase in your premium of 20 to 25 percent on your premium if someone was injured and you are the one at fault, due to losing the good driver discount on your insurance premium. The worst part of this is that the increases on premiums can stay for up to 3 years.
Now that does not mean you need to panic. Below we will go over some of the methods you can use to put a stop to an increase in auto insurance premiums after you are involved in a car accident.
1. No Matter the Size of the Incident, Tell Your Insurer
Let’s say you are involved in an accident you caused that was minor, or you were not at fault for the incident, and no one was injured. It may be tempting for you not just to report the accident to your insurance company, as the old saying goes, what they don’t know can’t hurt you right? No, wrong.
If the other person involved suddenly decides to sue you, even though you both agreed at the scene you wouldn’t; if you did not report the accident immediately, a car insurance company could refuse to honor your insurance policy.
What this means is you would then be forced to pay all the bills involved on your own. That cost is likely to be much higher than the amount it would have been if you had an increase on your premium.
Ramifications of Filing a Claim
An accident filed with your insurance company might cause your rates to rise. Premium increases are more likely when the accident is your fault; however, an insurance company might also raise your premiums if you have more than one not-at-fault accident within a policy period.
Even if the insurance company does decide to honor the policy, this will take away precious time of yours. A time that could have been dealt with at the time of the accident and your defense could have been better prepared.
This means, when you withhold information, you are lowering your odds to win your case. If the insurance company has to pay a claim, it will be very likely they will raise your premium.
Is an Accident Forgiveness Clause Included in Your Policy?
According to statistics, the majority of drivers will find themselves in a car accident every 17.9 years. Some insurers understand and accept that accidents happen, and are a part of life so that they will waive the first accident and you will not face any increase to your premium.
Details for this clause differ based on the company, so it is essential that you thoroughly read the phrase in your policy. Some companies immediately offer their accident forgiveness, other companies provide this only after you have been accident-free for many years, usually between 3 to 5 years. They also can require that there have not been any moving violations for up to three years.
2. Attend A Driving Class
You may have thought, or at least hoped that the last time you would experience driver’s ed was at the age of 16. However, if you take the time to study and take a course to refresh your memory, your insurance company might see this as you are attempting to improve your current driving skills, and in turn, will show some mercy on you when you are renewing your premium.
It is not helpful if you were driving under any influence, or driving recklessly. However, if neither of these was the case, you can use this to reduce your rates possibly.
This is not something you need to wait for your insurance company to ask you to do, you can do it on your own, then tell them about your doing so.
You can find these classes with an online search as locations and methods can vary by state.
3. Find Out About Higher Deductibles
The deductibles are what you pay after your claim has been filed and your insurance kicks in. If you request a higher deductible, you will be able to reduce the costs you will have to spend substantially. Let’s say, for example, you raise your deductible from $250 to $550; this could lower your cost for comprehensive coverage and collusion cost by somewhere between fifteen and thirty percent.
If your deductible were raised to $1,000, it would be able to save you at least forty percent or possibly even more! Before deciding on choosing a deductible that is higher, be sure that you have enough set aside to pay this amount if you need to file a claim.
The real key here to saving is not about the discounts themselves, but about the final price. Some companies may only offer some of these discounts, but even without all the deductions, their rate is lower overall than a company that does provide all these.
4. Shop For Another Policy
Take the time to look around for another policy if you are still not satisfied with your rate for renewal. Every company is different when it comes to pricing, so it is crucial that you shop around for prices. Take the time and get at least three quotes for pricing. You are also able to call companies directly or look up the information on the internet. Comparisons can also sometimes be found at your state insurance department.
Insurance is for peace of mind and financial protection, which is why it is essential that the company you choose for your insurance is financially stable as well. A.M Best has an option for you to check out various insurance company’s health financially and will provide ratings. Another site you can view for this information is Standard & Poor.
It is essential that you do not lie when you are looking for a new insurer, as the potential insurer will find all reported accidents and tickets on their database.
Be sure not to the only shop based on the price, ask people you trust for recommendations on insurance, contact the state insurance department for your state and ask if they provide information on complaints from consumers by the company.
Find an agent that is willing to take the time to answer all the questions that you have.
Call Arash Law for Accident Protection
No matter what you decide to do to help you reduce any costs, you may face after an accident, if you need a reputable car accident lawyer, contact us at Arash Law. We can help you through the complicated and frustrating steps involved after a car accident. Give us a call at 888-488-1391. Your case is important to us, and there is no fee for a consultation. Get the help you need from people who care at Arash Law.