Does a car accident impact your auto insurance rates? In some cases, the answer is yes. As such, you should always be honest and upfront with your agent. Do not be misleading about accidents.
But also remember that racking up too many fender-benders could mean that you'll spend more for car insurance.The reason is simple. Drivers with accidents are statistically more likely to be in additional accidents. This leads insurers to consider these motorists as high-risk drivers.
Which Factors Play A Role?
Not all accidents will raise your auto insurance premiums. Many times, they will have no impact. To determine how an accident might impact your specific case, contact your Insurance Discounters of Texas agent directly to inquire.
Some key factors that play a role in the answer may include the following:
- How severe was the accident? Significant vehicle damage, personal injury to another person, or loss of life are high-risk situations.
- Who is at fault? If you are responsible for the accident, your rates are likely to increase over the long term. If the other driver is at fault, the accident should have no impact on your costs. In states with no-fault insurance, it does not matter who caused the accident. Your insurance provider pays for the loss.
- How often are you filing claims? A small accident every few years is unlikely to impact your rates. But more than one accident will have an impact.
- How long have you been with the company? This plays along with the frequency of claims. Drivers who stick with the same insurer for years and rack up few accidents are not likely to see rates climb.
- Which discounts and features does the insurer offer? Some insurers offer accident forgiveness. This means that first accident may not impact your rates.
The cause of the accident also matters. Were you driving at a high rate of speed? Was the accident the result of alcohol or drug use? The factors play a role in how insurers tweak rates following accidents. Anytime you are deemed a high-risk driver, insurance is likely to charge you more for the coverage.
If your car insurance rates go up, speak to your agent. They might be able to offer you a discount if you stay accident-free over a period of time.
The key here is to recognize that a single accident does not have to cause your rates to skyrocket. Drive safely, and stay well-informed on how your driving impacts your rates.