It’s common knowledge that an auto accident directly impacts car insurance costs. However, the amount by which your auto insurance premium increases after a crash depends on myriad details. If you are involved in an auto accident, you might be facing some uncertainty. Will your insurer cancel you? Will they raise your rates? Here is a look at what you can expect along the way…
Will My Rates be Increased?
If your rate will increase because of a recent claim, you’ll likely find out about it when your policy renews. But here’s the good news… rates don’t automatically go up. Many times auto insurance companies will adjust rates depending on the situation itself. It is important to know when your rates can jump significantly and when they are not likely to increase all that much.
How Minor Damage Affects Insurance Rates
Minor accidents and fender benders may not translate to a rate increase — particularly if you have a history of otherwise-safe driving. Most often, insurance companies expect their clients to see at least a few claims during their lifetime.
How Large Damage Affects Insurance Rates
Your premium is more likely to increase after a major at-fault accident. Your driving record is a major factor in determining your premium, so a recent blip can have an impact when your policy renews. Let’s say that your claim is very high. Maybe your accident causes your car to be totaled. Or perhaps you caused a wreck and were driving under the influence of alcohol. In cases like these your rates may rise significantly. The reason being the insurance company has to pay for your replacement vehicle. And in cases of DUI you are now a high risk to insure.
How Having No Major Accidents Affects Insurance Rates
Let’s say you had a spotless driving record for the past 15 years. Last month, you caused an accident. Now there’s a claim on your car insurance to pay for damages. Because of the good record it may be a good indication that your agent is not gong to drastically increase rates.
When Will Rates Go Up, If They Go Up?
Every auto insurance company provides information about factors that can increase premiums. There are also factors that will cause an insurance provider to drop your coverage. Most often this includes repeated claims or reckless driving. Premiums are usually not raised in the middle of your policy year. If rates are increased it is likely to be when you renew your policy.
These are all things a broker or agent will be able to help you with. Understanding what makes an insurance policy price increase on renewal puts you in control of your policy, and in a position to negotiate for the best prices. Do a full review of your coverage and make sure that you have the things that best respond to your current needs.
Rollins Insurance represents multiple A-rated insurance companies to make sure we deliver the most competitive rate packages to our clients in Kentucky and Ohio.
Rollins Insurance is an independent insurance agency providing our clients the best prices with the most coverage possible since 2008. We represent multiple A-rated insurance companies to make sure we deliver the most competitive rate packages to our clients in Kentucky and Ohio. We find that most people are under-insured and over-paying when we meet them. We love what we do and our primary business is Personal Auto, Homeowners, and Life and Health insurance. We are a family-owned and managed business that specializes in providing needs-based insurance services.
>> Learn More About Us and Our Staff