How Car Accidents Affect Your Car Insurance Premium

How is your car insurance premium affected by a car accident? What factors are taken into consideration to determine any increases?

Car accidents can cause injuries to those involved and damage to property such as the car and other things that may be present inside the car at the time of the accident. This means, the car accident victim might have to bear huge expenses for the medical treatment, repair of the vehicle, or replacement of the vehicle or other property damaged in the car accident. Thankfully, your car insurance company will pay for most of the damages occurring as a result of the accident. All you need to do is inform your insurance company immediately after the accident, and file for compensation as soon as you can.

How Your Car Insurance Premium is Affected

Once you have made an insurance claim, it will invariably lead to an increase in your car insurance premium. In other words, once you have beeb involved in a car accident and have made a claim, you will have to pay a higher premium the next time you go insurance shopping. The increase in your insurance premium will not just depend on whether or not you have been involved in an accident; it will also depend on a host of other factors.

  • Who was responsible for the accident? If the accident was caused by your negligence, then you may have to pay a higher insurance premium.
  • The rise in insurance premium will also depend on the extent of damages caused to the vehicle in the car accident.
  • The insurance premium will also be affected by the injuries and any deaths that might have occurred in the car accident.
  • If you have previously made several car insurance claims, you should be prepared to pay a higher premium on your insurance.

How Much Will My Car Insurance Premium Rise?

There is no rule of thumb when it comes to an increase in car insurance premiums after an accident. It will vary with insurance company, policy, and the specific circumstances of your case. However, there are some pointers that can give you an idea how much your insurance premium will be affected.

  • If the insurance company has marked you as a high risk driver, you may pay a higher premium.
  • An accident caused by your negligence will stay on your record for at least two years, and will impact your insurance premium during that period.
  • If you are found responsible for causing three or more car accidents over the  past 2-3 years, you may be denied insurance coverage.
  • If an accident is caused by your negligence during the first year of the insurance policy, it can cause an increase in the insurance premium.
  • The cost of insurance usually goes up with every claim that you make.

If you need some legal advice or help in getting the rightful compensation from your insurance company, contact RJ Alexander Law, PLLC at (832) 458-1756.