One of the first questions a driver asks after a car crash is, “How much does an accident affect insurance?” Accidents happen to even the best of drivers. That’s why car insurance is vital.
Car insurance helps lower the amount you pay out-of-pocket for property damages and medical costs. With that said, you may be wondering how much your car insurance will increase after a car accident. A car accident will likely increase the premiums you pay, so let’s explore the different factors that lead to such a rise in rates.
If you’ve been involved in an accident and want to talk to an experienced attorney who can help you sort through these issues, Ipson Law is here to help.
Factors Influencing a Rate Increase
When you’ve been in a car accident, your insurance premiums may rise depending on:
- The state where you live.
- Your insurance company.
- Whether or not you’re at fault.
- The amount of property damage and/or medical costs.
Why Does Insurance Go up after an Accident?
Depending on the accident’s severity, you may be considered a higher risk due to unsafe driving. Insurance companies adjust their rates after an accident because they now have new information about your driving record. They must take that into account.
Insurance providers take a certain amount of risk to insure you. As a result, they pass that risk on to consumers through higher premiums. If you maintain a safer driving record, you’ll see a decrease in rates again.
Don’t hesitate to call other providers and compare quotes. They’ll also need your driving history, but you still may get better prices from other insurance companies. It doesn’t hurt to shop around.
How Long Does an Accident Stay on Someone’s Record?
Every state is different, but car accidents usually stay on your record for an average of three to five years. If you’ve been involved in a serious accident, it may remain on your record even longer. For example, if you’ve been charged with DUI or reckless driving, it could be on your record for up to 10 years.
Ways To Lower Insurance Costs after an Accident
There are ways you can pay less, even after an accident. You can:
- Ask your insurance company if they have an accident forgiveness program. If they do, enroll right away. If they don’t, shop around for one who does.
- Seek discounts for driving fewer miles, earning good grades in school, or working in education, healthcare, or military service.
- Improve your credit rating and increase your credit score. This usually involves paying off or lowering debts, sticking to a household budget, and staying on top of any false information that might be in your credit report.
- Raise your deductible. If a claim is filed, this will increase expenses, but a higher deductible will lower those monthly premium payments.
- Review your policy. Change some coverage options and lower your costs. An agent should advise you, so you’re maintaining your state’s minimum required coverage levels while cutting the more optional selections.
- Choose a different vehicle. More expensive vehicles cost more to insure. You might save money by buying a used car or leasing a vehicle–which would be less expensive.
Combining one or more of these ideas with shopping around for lower quotes might lead to lower rates, even if you’ve been in an accident.
Ipson Law can help you seek financial compensation for a car accident that wasn’t your fault. If you need legal assistance, contact us for a free consultation.
Michael is an attorney who started Ipson Law because of his passion for personal injury law. He graduated with a Juris Doctorate degree from McGeorge School of Law in Sacramento, CA. Learn more about Michael on our about us page, and contact Ipson Law to find out how we can help you.
