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.
