Accidents and car insurance rates
Car insurance protects against the damages caused by accidents. Car insurance rates depend on the driving record of the driver and other factors. Car insurance providers check the driving history of the driver while deciding the car insurance premiums. Car insurance rates are higher for drivers with accidents and violations in their driving history. Car insurance companies offer accident-free discounts to drivers with a good driving history. Drivers with violations or accidents in driving records are high-risk clients for the car insurance companies than the drivers with a good driving record.
Car insurance companies increase your car insurance rates at the time of renewal of the car insurance policy, if you are at fault in an accident. According to the data gathered by the MyMoneyMyQuotes team, car insurance rates after accidents may increase by 40%. Car insurance premiums may increase up to 50% in some states of the USA such as California, Missouri, Utah, etc. Car insurance rates can increase more than 50% if you are at fault and damages caused by you worth more than $5000. Some car insurance companies do not charge more for minor accidents.
Car insurance premiums after an accident vary from company to company and state to state. You should compare car insurance quotes from the different insurers to find the cheapest car insurance policy.
There could be a significant hike in the car insurance rates if you caused injury to someone else. Following are the average car insurance premiums after accidents according to the states:
|State||Average car insurance premiums with a good driving record||Average car insurance premiums after accidents|
Car insurance rates after an accident if you are not at fault
Few states prohibit the car insurance companies to raise your car insurance rates if you are not at fault. But some car insurance companies may increase 10-15% car insurance rates on accidents when you are not at fault.
Accidents that do not influence car insurance rates
It is difficult to define what is not considered an accident. Most of the insurance companies set 50% percentage limits of faults to consider an accident. So, if your fault is more than 50% in an accident then your insurance company charges high car insurance premiums from you.
Car insurance rates are not affected by all accidents. There are some incidents that do not increase car insurance rates.
- If someone hits your car which is legally parked then it does not affect the car insurance rates.
- If you received the compensation from the person who caused an accident or if you have a judgment against the person who is at fault then it does not affect the car insurance rates.
- If you did not get a ticket related to the accident and your car was rear-ended then it does not affect the car insurance rates.
- If the driver was convicted of a moving violation who is at fault, it does not affect the car insurance rates.
- Car insurance rates may not increase if the damages to the vehicle caused by birds or animals.
- Car insurance rates may not increase if damages are caused by missiles, falling objects, flying gravel, etc.
- If an accident happens when you are responding to an emergency as a volunteer or paid member of the police, fire, first aid, or law enforcement department then it is not chargeable as an accident by the car insurance company.
Car insurance agents access the driving history of the past three to five years while deciding the car insurance rates. Minor accidents affect car insurance rates for 3 years. If the accident is serious then it will affect the car insurance rates for 5 years.
Some car insurance companies offer accident forgiveness programs to their clients which helps to avoid the increase in car insurance rates.
To cover the damages due to an accident you need to purchase liability car insurance. Liability car insurance is mandatory in almost all the states for drivers to drive legally.
It is difficult and time consuming to purchase the cheapest car insurance policy for a driver who has violations or accidents in driving records. To get the cheapest car insurance you should compare the insurance quotes from different car insurance companies. Different companies charge different car insurance rates after an accident.
You must compare at least 4-5 insurance quotes to select the best car insurance policy. Selecting the cheapest car insurance policy only is not sufficient; you should also check the details, reputation, and services of the car insurance company to find the car insurance policy according to your need.