I Was In An Accident, Will My Car Insurance Rates Go Up?

You were on the phone, got distracted and before you knew it traffic had stopped, giving you no room to stop and you rear end the girl in front of you. Or, let's say you're driving along and a deer jumps out and rams into the side of your door.

Now, let's say you need to file and claim and get your car fixed. But, are your rates going to go up?

In the first case, more than likely they will depending on how much your insurance company pays out to fix both cars and medical bills if anyone was injured.

But, in the second example, since this will be a comprehensive claim your rates should not see an increase at your renewal. Unless you have a long history of hitting deer then the people from PETA will be out to get you. Or if you file a lot of small glass damage claims then your rates could be affected or you may have to pay a higher deductible for comprehensive in which case small glass damage will be less than your deductible and you will pay out of pocket.

Part 2: How long does an accident stay on my record?

Ok, so back to the example where you rear ended someone. We have already established that you are going to see your insurance rates go up. Now, we need to find out how long and how much will they go up.

State insurance boards usually allow insurance companies to charge for a accident for 3 years from the day they started charging for it. Not from the time you got into the accident. You got in the accident in December and your policy runs from October to April. Your rates won't be affected until April of the next year and the surcharge will drop off 3 years from that April.

How much will your rates go up? Are they trying to get back the money they paid out for my claim? You can usually expect a rate increase of between 20-40% on average per six months. They could go up even more if you lose some discounts you were getting, such as a claim free discount.

The increase is not a recoupment of the monies paid out by your insurance company. It is designed to charge you a premium based on the risk, or chance, that you will get into another accident in the next 3 years. You are a higher risk to the insurance company and they are able to charge you for the higher risk you present to them.

If it was based on how much the insurance company paid out then you wouldn't be able to afford it if you totaled out your 2004 Nissan Maxima at $25,000 and you had to pay that back within the 3 year surcharge period. Makes sense? Good, now get off the cell phone!

A. Chris Tijerina has over 3 years of experience in the auto insurance industry and has seen many different people deal with auto insurance related problems. http://www.insurance-for-cars.com answers many of the questions facing drivers today.

---

Better Links Directory

The Life Insurance Quote Business is Booming, but is the Insurance Quote Accurate?

The life insurance quote business online is booming. Not only... Read More

Everybody Wants The Best Term Life Insurance Quote

The information you need about the best term life insurance... Read More

Alternate Risk Transfer (ART) - Insurance Strategies

Risk ManagementAlternate Risk Transfer is a fancy way of saying... Read More

Global Warming: Why Consumers and Insurers Are Getting Hot Under the Collar Over Life Insurance.

Global warming may have been lurking on our horizon for... Read More

10 Ways to Lower Your Auto Insurance

Nowadays, auto insurance is really expensive. A typical insurance policy... Read More

Credit Card Insurance

A word of warning about Credit card repayment protection schemesThe... Read More

Car and Home Insurance Northern Ireland

Don't skimp on insurance. This probably doesn't sound like a... Read More

Home Insurance: Premium Protection In Case Mishap Takes A Rain Check

My whinstone house my castle is, I have my own... Read More

Health Care and Health Insurance Costs Can Be Controlled Through Lifestyle Choices

As you probably know all to well, the cost of... Read More

How Much Car Insurance Should You Buy?

Car insurance is one of the most dreaded chunks in... Read More

Why Does Health Insurance Cost So Much?

Why does health insurance cost so much? Year after year,... Read More

Know Your Own Worth: A Practical Insight Into Covering Up

Almost anything can be insured these days: breasts, legs, your... Read More

10 Tips to Save on Healthcare Insurance

Americans shopping for their own healthcare insurance can substantially cut... Read More

Consumer Directed Health Plans

Most of you have heard about "consumer directed health plans".... Read More

What Is Term Life Insurance?

There are two different types of life insurance, term life... Read More

Japanese Overseas Travel Insurance

If you are an expatriate planning on long-term residence in... Read More

Finding a Discount Car Insurance Broker

Discount car insurance brokerTimes past finding a discount insurance broker... Read More

Why Dont Women Have Life Insurance?

Traditionally, life insurance companies solicited men as the main breadwinners... Read More

Car Insurance Online ? Benefits of Applying for Auto Insurance Online

Drivers are applying for auto insurance online not just for... Read More

Why Boat Insurance Is A Necessity

Boat insurance is necessary for all boat owners who live... Read More

Cheap Health Insurance - Health Insurance for The Self Employed

If you're self employed, you may think of health insurance... Read More

Motor Insurance with Pass Plus

Is pass plus really worth it? What motor insurance discounts... Read More

Health Savings Account (HSA): What Happens to it When I Retire?

The Health Savings Account (HSA) is a great tool that... Read More

Insurance or Assurance - Do You Need Reassurance?

Insurance versus assurance: what is the difference?Should you care?Yes!!The world... Read More

Poor call centre performances driving motorists online for insurance

In their efforts to cut costs more and more finance... Read More