Following a car accident, the fear of increased insurance premiums is a pressing problem among accident victims.
However, if you were in a car accident, it’s crucial to understand that there are ways to avoid or minimize an increase in your car insurance premiums. In this article, we’ll cover some of the best strategies you can use to maintain an affordable insurance rate after a car accident.
6 Ways to Avoid Increased Premiums After a Car Wreck
In this section, we cover 6 ways you can avoid experiencing increased car insurance premiums following a car accident.
Utilize Accident Forgiveness Insurance
One of the most common and effective ways to avoid a spike in insurance premiums after a motor vehicle accident is to have accident forgiveness as part of your insurance policy.
Many insurance companies offer accident forgiveness programs to drivers with clean driving records, and some even automatically include them after several years of safe driving.
By having accident forgiveness insurance in your policy, you’ll be protected from increasing insurance premiums after your first at-fault car accident.
Understand Who Was at Fault for the Accident
It’s important to understand that not all accidents will affect your insurance premiums, especially those you are not at fault for.
Typically, insurance companies will not raise your rates for a car accident in which you shared no fault.
However, it’s important that if there is a dispute over fault or you are unsure who is at fault, you contact an experienced personal injury lawyer, such as Las Vegas Car Accident Lawyer Rodney Okano, who can investigate your accident case and determine liability.
Opt for a Higher Deductible
Another common way to avoid an increase in insurance premiums after a car accident is to opt for a higher deductible.
Opting for a higher deductible means increasing the amount you pay out of pocket before your insurance coverage kicks in.
By opting for a higher deductible, you may be able to pay for the damages resulting from an accident yourself rather than filing a claim and risking increased premiums.
Pay Out of Pocket for Minor Car Accidents
If the car accident resulted in minor damages, you may consider paying for the repairs out of pocket instead of filing an insurance claim.
By doing this, you can avoid filing a claim and possibly having your insurance company consider you a high-risk driver.
However, before you pay out of pocket, it’s vital that you obtain a professional estimate of the damages’ cost and decide whether it will be smart economically to do so.
Keep a Good Driving Record
When you’re involved in a car accident, your driving history will play a significant role in determining how high your insurance premiums may spike.
If you have a good driving record, a single accident with disputed liability may not cause your premiums to spike.
However, if you have a poor driving record, a car accident could drastically increase insurance costs.
Use Telematics and Safe Driving Programs
Almost all major insurance companies today offer telematics or usage-based insurance plans that monitor your driving behavior.
These programs monitor your speed, braking, and general driving habits, and by using such programs in your daily driving, you may qualify for lower rates if you have proven to exhibit safe driving behaviors.
How Much Will My Insurance Increase After a Car Accident
A car accident can potentially have a significant impact on your insurance premiums.
The impact on your insurance costs typically depends on the severity of the accident, as minor accidents with minimal damages and no injuries may only result in a 20% to 25% increase in insurance premiums.
However, in a major accident where there is substantial property damage and injuries, the insurance premium may increase by 50% or more. It’s crucial that if you’re worried about a possible insurance premium increase after a car accident, you consult with an insurance agent.
