Increasing Insurance Rate After Accidents

Its normal for people to expect that insurance rates will increase after an accident. The problem is that you'd want to know exactly how much the rates will go up. As you can imagine this will be another cause of increased anxiety amongst many people. It is a problem that almost all accident victims have to deal with. In this article we will discuss how to soften the anxiety blow.

One of the main factors that will determine the increase that you will suffer is how much the insurance company had to pay out for your accident. It doesn’t matter if you are in the right or the wrong, the quantum that your insurance rate will increase by is normally a function of how much you required the insurance company to pay-out.

Now, if the accident is particularly bad and your insurance isn’t enough to cover for your claims then naturally you are going to have to take up the different yourself. This is another indicator of how much your premiums will increase by. Most insurers will subsequently ask you to increase you insurance because it has proven to be insufficient for your needs. This in itself will mean that you will see your quotes go up because your coverage has to be increased.

Assuming that if the accident is your fault then your insurance premiums will almost certainly increase even more. The reason for this is how your accident affects your risk profile as viewed by the insurance company. This is in addition to any “No Claim Bonus” that you would have foregone when claiming and also any upward revision of your insurance needs by your insurer.

Another thing to worry about is the dreaded SR-22 form. In some states if you are found out to have insufficient insurance coverage to take care of your prior accident then you are required by law to carry this form along with evidence to support that you have enough insurance anytime you are on the road. To aggravate matters, the SR-22 form isn’t free, getting the SR-22 form means that you have to part with even more money.

To add insult to injury, you will be required to carry this SR-22 form along with evidence that you are sufficiently covered insurance wise even if you no longer own a car. Some insurance companies have a strict policy of not accepting clients who have previously carried too little insurance and now have to carry an SR-22 form.

Another possible reason that your car insurance rates increase after an accident may simply be down to economics of demand and supply. Due to your risk profile increasing the number of insurers that will accept you will be decrease. All insurance companies know this so they will simply hike their price due to market forces.

Ultimately, the best lesson to be taken from this is to avoid accidents like the plague. They will inconvenience you to an unimaginable degree and will cost you more than you are willing to part with. The increase in insurance policy rates is just the tip of the iceberg.


Useful Tips

Always provide as much details as possible, if you omit some details then the quote will be based on the worst case scenario for every missed detail. Get the best quotes by giving every bit of information you have

Shop Around
Car insurance quotes can vary wildly depending on the insurer. You should always shop around and get as many quotes as possible so you can get a picture of what you should be paying.

Caping the Miles
Some insurers will actually lower your quote if you agree to limit the distance travelled by the car. Most of the time substancial reductions can be offered if the driver agrees to not drive over 40 miles a day. Check with your insurer.

Anti-Theft Device
Most insurers will reduce your premium if you actually install an approved anti-theft device onto your car. Sometimes the deductions are as such that you can recoup the expense from a years savings in premium.

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