How a Car Accident Affects Your Insurance Rate

Not only can car accidents cause harm to you and your vehicle, but they can do significant damage to your car insurance premium. In fact, drivers involved in at-fault incidents currently average incurring a 31% increase in their car insurance rates after an accident,Some car insurance providers offer accident forgiveness programs that help minimize increases in your insurance premium following an accident, so it may still be possible to find cheap car insurance after an accident.

Though at-fault incidents with bodily injury lead to the most significant insurance rate increases, other types of accident claims also affect your premium. Fortunately, comprehensive claims lead to a much lower rate hike. Car insurance claim types include:

  • At-fault bodily injury accident
  • At-fault property damage accident over $2,000+
  • At-fault property damage accident under $2,000
  • Comprehensive claim over $2,000+
  • Comprehensive claim under $2,000
    Claim Type Average Increase (%) Average Increase ($)
    At-fault bodily injury 32% $459
    At-fault property damage over $2,000+ 31% $450
    At-fault property damage under $2,000 26% $366
    Comprehensive over $2,000+ 3% $39
    Comprehensive under $2,000 3% $39
    2nd at-fault property damage over $2,000+ 110% $1,572
    2nd comprehensive over $2,000+ 8% $121

Lowering your rates after a surcharge

Even if you don’t qualify for accident forgiveness from your car insurance provider, there are still a few ways you can lower your insurance rate after a surcharge is implemented.

  • Improve your credit: In addition to your driving record, your credit rating also plays a role in determining your car insurance rate. Work on staying within your spending budget, pay down your outstanding debts and address any discrepancies on your credit report to better your credit score.
  • Increase your deductible: When it comes to car insurance, the higher your deductible the lower your premium. However, before raising your deductible, keep in mind you’ll suffer more out of pocket expenses before your insurance kicks in if you’re involved in another accident.
  • Discounts: Most car insurance companies offer a variety of discounts for their customers, including good student discounts for high school and college students who maintain good grades and multi-policy discounts for bundling insurance policies.
  • Lower your coverage: Though this option should probably be the last resort, if you absolutely need to lower your insurance premium, you can consider cutting down your coverages. Most states require a certain level of liability insurance to operate a vehicle, but you can cut out or lower your comprehensive coverage if necessary.
  • Shop around: With so many car insurance carriers on the market today, it’s always a great idea to shop around and find the best prices currently being offered from company to company. You may also find that some companies offer different discounts and coverage options than others.

 

https://www.bankrate.com/insurance/car/rates-after-an-accident/