How Claims Affect Insurance Premiums
Insurance premiums are set by your insurance company using set criteria. Basically, it all comes down to statistics. They look at specifics of mortality rates for certain groups of individuals of different age groups, men and women.
What Affects My Premiums?
Most times when you get into an accident or get a ticket your premium goes up. When you get into an accident you will most likely file a claim with your insurance company. This is what you are paying for when you purchased your insurance policy. You purchased protection so that if you get into an accident you are covered and your damages will be paid for and fixed.
Filing A Claim For An Accident Where You Are Not At Fault
Even though you did not cause the accident and you were not at fault you should file a claim through your insurance carrier. This is important for a few reasons. First, if the other driver does not have insurance your comprehensive/collision coverage should cover your damages minus your deductible. If the other driver does have auto insurance it is still important that you file a claim with your carrier as they will assist you and assure that the other insurance company covers the claim. If there has been any injuries your medical coverage (as long as you have it) will cover your injuries.
Filing A Claim For An Accident Where You Are At Fault
It is very important to file a claim immediately following an accident. Your insurance will be responsible for your damages and medical along with the other party if you are at fault.
Will My Insurance Premiums Go Up After An Accident?
The Insurance Company will look at a few criteria to determine if they will raise your rates after a claim has been filed. If the accident was your fault most likely they will raise your rates. They also look to see overall, how many claims you have filed. If they feel you have filed too many they may raise your rates regardless if you are at fault or not. They may even choose to not renew your policy.