7 Tips to Reduce Car Insurance Rates After an At-Fault Accident – Have you ever gotten into an accident and wondered what’s gonna happen to your insurance? Today, we’re gonna talk about what happens to your insurance after an accident.
First, I’m not a lawyer and I’m not an accountant, so always make sure to consult a professional.
7 Ways to Lower Car Insurance Rates After an Accident
Getting into an auto accident, not only affects you and your car, but can cause a significant rise in your auto insurance rates as well. So if you find yourself in an unfortunate situation of being in an accident, it’s important to know what to expect, and the cost of your insurance policy after the accident, depends on several factors.
The average annual premium for auto insurance coverage before an accident is $1,674 and 2,311 after an accident. So this means that your insurance will go up by $637. However, the yearly premium may go up higher than average in some states, depending on the damage caused.
A 20 year old male can still get the cheapest available car insurance in the US, even though drivers in their twenties are considered potentially risky customers. And this means that insurance companies are willing to offer lower rates for insurance for this demographic, if they have not been proven to be a high risk group, yet.
According to Valuepenguin, Geico is the cheapest car insurance company for 20 year old male. But there’s also cheap car insurance for over thirties, since car insurance rates tend to reduce as drivers get older. Your insure also contributes hugely to how much you pay after an accident.
You should really research to find out an excellent deal before registering for your car insurance policy. And there’s many cheaper car
insurances in different states. So consider switching to the cheapest one in your state to enjoy affordable rates.
How does an accident affect your car insurance rates?
Well, immediately after an accident in which you’re at fault, your car insurance rates will rise significantly and the reason is that at-fault accidents are chargeable in court, if they may have caused injury, death, or damage to properties. However, you can expect your rate to return back to normal about three to five years afterwards.
Other insurers may charge more, if the crash is bad enough and lower, if the crash is not as severe, but to most insurers, the collision severity doesn’t matter, and they will still increase your insurance rates as long as it’s happened.
Car insurance companies have different ways of increasing their insurance rates after an accident. So for instance, the frequency of an accident matters a lot, and a driver with an already bad record would pay higher than an another driver with the same situation, but with a clean record. So most car insurance companies do this because the former driver is more likely to cause another accident. For this reason, you have to compare several insurance rates given by different insurers in your state to get the cheapest one after an accident.
Before settling, make sure you understand everything from the rates to their policies. This way you can avoid any surprises that might come after involved in an accident. You can clearly see the difference between these 11 top car insurance companies, before and after at-fault accident. USAA a is the cheapest among them all. So it offers lower rates before and after accidents to its customers.
However, USAA Auto Insurance is available only to veterans and their families and active military people.
Let’s have a look at some other examples of insurance rates before and after an accident for comparison. As you can see, All State has an average annual premium of 1,921 before an accident. And that increases to an average annual premium rate hike of 2,752. That’s an increase of $831 over the course of a year.
Now, let’s have a look at Geico, as I’m sure you’ve seen their funny commercials on TV. Here, we have an average annual premium of 1,405 before an accident. And that increases to an average annual premium rate hike of 1,971 , giving us an increase of $566 over the course of a year. Now, we’ll compare one more. Let’s pick State Farm. With an average annual premium of 1,457 before an accident, that increases to an average annual premium rate hike of 1,657, giving us an increase of $200 over the course of a year. As you can see, there are varying rate amounts amongst car insurance companies, which can factor into your decision-making process.
How do you get a lower car insurance rate after you’ve already been involved in an accident?
Many drivers ask themselves this and after getting involved in an accident, it really depends on several things. For example, the number of accidents that you’ve been in within the past three years, Some drivers may qualify for the accidental forgiveness program from their insurers, which can save them a lot of money. But still there are other discounts that you can qualify for such as working in certain occupations, like teaching and also driving fewer miles.
So if you don’t qualify for a discount, there are still that you can get a lower rate from your provider after an accident, and one way to do so is by negotiating a car accident insurance settlement with your insurer and discussing the various methods to settle the cost. So here are some other ways to lower your insurance rates. One is a deductible increase. So a driver can lower their premium rate if they pay a higher deductible.
But however, before you can raise your deductible, know that most of your expenses will be covered from your own pocket being before your insurer pays.
You want to make sure that you’re utilizing your available discounts. So, as we’ve mentioned before, many auto insurance companies usually offer several discounts to their customers and such deals include good students, safe driving and multi-policy. Another thing you want to do is make sure you’ve improved your credit rating.
In some states, car insurance company consider your credit rating to determine how much they’re gonna add to your rates after an accident. So it’s important to ensure that your credit rating is good. Do this by staying within your budget, paying all your debts on time, and addressing any issues with your credit report immediately.
Make sure to update you coverage. Changing your coverage is one way of lowering your insurance rate. However, only reduce the amount of your insurance with the help of a licensed professional. Otherwise, you might get in trouble for insurance fraud if you don’t get any proper legal advice. Also ensure that you maintain the minimum insurance coverage levels from your state, as you work on updating your coverage. You can also buy a cheaper car.
Did you know that it costs you a whole lot more to ensure a more expensive car? Getting a cheaper option will reduce your insurance premiums. Look into cheaper insurance options. Insurance prices vary significantly across insurance companies. There’s always one offering cheaper rates than another. The discounts and coverage options that these companies provide also vary.
That’s why you want to make sure that you shop around comparing everything provided by these companies to get the cheapest one. Also, don’t forget to check the insurance company policies because cheap rates won’t help, if the policies are too tight. Here are some things that you’ll discover as you shop around for the most affordable car insurance company. Here’s a special case.
What happens if you get into a no-fault accident with a driver without insurance in Tennessee?
You can file a negligence lawsuit against the driver who caused the accident, and later you must show and prove that the driver’s carelessness, in driving, caused you bodily injuries and harm in order to get compensated.
So make sure you get proof by taking photos and collecting police reports. You can also file a claim from your insure, if the other driver doesn’t have one. Let’s take a look at some popular questions that are asked about insurance rates after an accident.
So first is, should I file a claim with my insurance company if my rates going to increase?
The decision to file an insurance claim depends on several factors. So you want to be aware of your comprehensive or collision deductible and know which deductible will apply to your loss. So if you only have minor damage, getting an estimate before filing a claim might be a good idea. Reviewing your potential claim situation with an agent could also help you decide if filing a claim is appropriate.
Which car insurance companies have an accident forgiveness?
So many car insurance providers offer some kind of accident forgiveness to enroll drivers, including All State, Progressive, USAA, Nation Wide, Geico and The Hartford.
When does your car insurance go down after an accident?
So an accident may negatively affect your car insurance premium from three to five years after the date of the incident.
Will an insurance rate increase affect your credit score?
Like we said before, no. While being involved in a car accident, it does not negatively impact your credit rating. A low credit score will lead to higher premiums though. Always make sure to get your insurance rates right. Well, getting into an accident is inevitable, it doesn’t necessarily mean that you’re going to get a higher insurance rate. As we’ve discussed, an increase in insurance rates depends on your state, and the damage that’s been caused.
There are also several ways that you can lower your premiums, such as driving a cheaper car, shopping around for the best deal, improving your credit rating. You can take advantage of all the above techniques to avoid increasing your insurance rates significantly. I hope you enjoyed that session.
Well, now you’ve read about 7 Ways to Lower Car Insurance Rates After an Accident. Did you learn anything from the above review? Give some responses in the comments column below