Car Insurance Rates

Got into your first car accident? It’s common knowledge that a car accident directly impacts car insurance costs Despite what you think, the amount by which your insurance increases after a crash depends on several factors. Let’s break down how car insurance goes up after an accident, and what factors might be driving up your cost. 

Severity of the Accident

Depending on how badly your car is damaged and if there are any injuries, premiums can vary greatly. For example, a small dent in the side of your car or a broken headlight is a relatively inexpensive fix and doesn’t cause any risk for injuries to yourself or others. Your insurance company could choose to leave your rates as-is because these types of accidents are very commonplace and easy to fix.

On the other hand, if your car is severely damaged, totaled, or there are bodily injuries to yourself or another person – it could cost thousands of dollars to repair, or to pay any medical bills. Most of the time, this is almost guaranteed to hike up your rates because this is the kind of situation insurance companies try to avoid the most. If you have another medical insurance policy, then the payouts from your insurance company could be much higher: which means you’re a more considerable risk as a policyholder.

Time Between Accidents

Even though this could be your first accident ever, it could be indicative of future behavior in the eyes of insurers. That’s why it’s essential to factor in the dates between your first and second accidents. If you’re a young or new driver, your rates could increase after your first wreck but if you maintain a perfect driving record, then your costs may go back down. 

Unfortunately, if you get into a second collision not long after your first, then your insurance rates will stay higher for a longer time. For older drivers who are have not gotten into any accidents in a long period of time, a rate increase may not occur because you have a longer history of being a safe driver. Most of the time, your insurance plan will be reviewed periodically, depending on how long the policy term is. 

If you remain a safe driver, your rates should not go up dramatically and can even decline with discounts. However, once you get into your first accident, your entire driving record will now be up for review by your insurance provider. This can have a lasting impact on the future of your auto insurance rates. If you’re concerned about your insurance payment going up right away, you can relax for a moment. Insurance companies don’t normally increase rates on everyone who’s ever been in a car wreck. 

Who’s at Fault?

One of the most crucial factors to take into consideration is who is at fault. If the wreck was caused by your actions, then your rates are most likely to go up. On the contrary, if you were hit by another vehicle then your insurer will be much more understanding and the other driver’s insurance company will have to pay for any damages or bills from the wreck. Even though rates won’t increase as a direct result of being hit, your rates could increase slightly because this new accident will be on your driving record. Depending on your age, your insurance company might predict you’ll likely get in another accident in the future, which could result in your premium going up.

What to Expect

One thing to consider is that your insurance rates are an indicator of how safe a driver you are. Insurance rates are also personalized to your background, so just because you are in one wreck doesn’t mean your rates will increase. There are many things to factor in with your insurance rates increasing after a car accident – so it’s best to speak with a car insurance agent today. For any questions regarding car insurance, don’t hesitate to contact Friends Insurance Brokerage for your needs.

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