Can an Accident Affect Insurance Coverage?

Most people are involved in an automobile accident at some time in their lives. Most of the time these accidents are small fender benders where no one is injured, but in some cases accidents can be serious. One of the last things that people think about after an accident is will the accident affect insurance coverage in the future. A simple yes or no will not answer this question.

The good news is that if the car accident was not your fault there is a good chance that the accident will not affect your insurance coverage. The majority of insurers do not raise premiums for accidents that were not the fault of the insured. It is possible that the insurance company will raise your premium even if the accident was not your fault, but this is not the standard. Fortunately if this was your first accident and it was not your fault it should have very little effect on your insurance premiums. On the other hand, if the accident was your fault it may have an impact on your insurance premiums.

With certain insurance providers first accidents have no effect on premiums what so ever. This is because these agencies have special programs that protect their clients from premium increases after a first accident. This only applies to drivers who have never had a previous accident while insured under any company. If you switch to another insurer in the future previous accidents will still affect your premium with the new company.

Insurance companies determine the premium you will pay based upon how much of a risk they consider you to be. If you have had multiple accidents you will be considered a higher risk and you will pay higher premiums. Though one accident may have little or no affect on your premiums, a second accident will.

Insurance companies like safe drivers and if you are considered a risk they will require you to pay more for coverage. A single accident with multiple traffic violations can also lead to higher premiums. Making choices that result in tickets and accidents will make you appear to be a higher risk to the insurance company.

There are many factors that insurers take into consideration when determining the premium you will pay. Accidents are one of the number one indicators of risk that these companies consider. The best plan to follow in order to secure lower premiums is to drive safely and avoid accidents if possible. Can an accident affect insurance coverage? Yes, it certainly can.

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Car Insurance Rates - How Do Traffic Tickets, Accidents and DWIs Affect Your Car Insurance Rates

Do you know the true cost of a traffic ticket, an accident or a DWI when it comes to your car insurance rates? Do you know how long these things can have an affect on what you pay for your insurance each year? These are offenses that insurance companies take into consideration when they are deciding how much to charge you for your insurance. They are all reasons that your insurance rates will go up and you need to know how much you can expect to pay if you get a ticket, have an accident, or get caught drinking and driving.

First, let us discuss traffic tickets. When you get a ticket for speeding, if it is your first, you can usually use the deferment program and pay the ticket. This means that as long as you do not get another ticket within a year the insurance companies will never find out that you got a ticket because it will be removed from your record. If you can use this program, then you should do so. If you have already used the deferment program, then you will have to report the ticket to your insurance and this will cause your rates to go up from 50% to 150% of your current premium.

It will make a difference if you were going 20 miles or more over the speed limit because that is considered wreckless driving and you will have to pay even more on your insurance premium.

Second, let us discuss accidents. Even an accident that is not your fault will raise your rates some. This is due to the fact that somehow you were in the situation where you ended up in an accident. This will not raise your rates too much, but if you have a few of them in a year or so period of time, then it will have a heavy effect on your rates. Now if you have an accident that is your fault, then you better be prepared for your rates to skyrocket. They will at least double and might even triple in some cases. Accidents are one of the worst things when it comes to your insurance rates.

Last, let us discuss DWIs. These are the worst for your insurance. Beside the couple thousand in court costs, lawyer fees, probation fees, and alcohol class fees that you will pay, you can expect your insurance to jump about 200% to 500% for the next year, then it will go down a little if you do not have any infractions. After about 3 years it might make it back down to where it was before, but it may take up to 5 years. This will most likely bring the total cost of your DWI up to around $5,000 to $7,000 when you could have taken a cab for under $50 or rented a hotel room for under $100. Instead you will pay for it on your car insurance rates.

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