How Much Can My Auto Rate Increase After One Accident?
Once you have an accident, the first thing that comes to mind is how much this is going to cost me. Yes, getting your car fixed will set you back, but most people worry about the increase in auto insurance premiums. After an accident the odds greatly increase you will see a price increase, but how much can be tough for a consumer to determine. Let us look at what kind of increase we can expect after our first accident.
Let us clear up a misconception that many people have and that is an accident that is not their fault will not cost them a premium increase. We would all like to think that, but it's not always true. Almost all at fault accidents on your part will mean an increase in your monthly auto premiums. You may not see an increase right away, but eventually you will. How much you are you looking at? This depends on many factors as well. Let us look at some of the factors involved when you are in an accident. One of the biggest factors insurance companies figure in is your coverage. If your coverage falls short than the insurance company is left picking up the bill, which means increased car insurance premiums for you. This is why it is always best to have the most coverage you can afford. When accidents happen, you never know what it could cost you. Being underinsured is just not the way to go.
Some states now require drivers to get an SR-22 bond, which is for drivers who have had an accident, but not enough coverage. These SR-22 bonds will increase your rates and many states will force you to have these for three years even if you do not own a vehicle. Supply and demand also play a small role in it as well. When demand is high for auto insurance the price tends to increase and when demand is low it goes down. Most people when they have an accident can see increases from as little as 10 percent increase and depending on many factors, it can go a lot higher. They key to keep auto insurance premiums in check is to avoid accidents and tickets altogether. This way increases in your premium will be very little.