One of the biggest worries people have is how an accident will affect
their auto insurance premiums. Knowing how much will they increase and
what really determines the increase can be tough. This is something you
will not have to worry about if you do not have any accidents. If you
do have an accident, you may sit and worry about a price increase.
Today we will look at the factors that can affect how much your premium
may increase because of an accident.
Many people think that once you have an accident that an increase to your premium is always automatic. This is just not true with all situations. Each situation is different and many factors vary on if an increase is forthcoming. The first thing you will need to understand and that is any increase varies from state to state and one insurer to the next. Each insurance company has their own set of rules on if any increase will come. Here are some things though that most auto insurance companies follow after an accident.
A lot of times people assume if they are at fault an increase is automatic. Most insurance companies factor in the severity of the accident and the amount of the claim. Some insurance e companies will not increase for an accident of 750.00 or less. Always remember though every insurance company is different. Another very important factor is your driving record as well. Things such as tickets, how many accidents, and claims also figure into if you will see an increase in your auto insurance premiums. Keeping your driving record as clean as possible may get help you avoid an increase in your premiums.
Another option that you may want to consider to stop auto insurance premiums is by changing your policy. These days many companies are offering forgive the first accident policies. This means if you have an accident your first time is forgiven with no price increases on your premiums. This maybe something that you want to look into if you’re worried about price increases after an accident. In the end there are many different factors that determine price increases. It's rarely just one thing, but to avoid increases drive with care and stay accident free.
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