How to stop your insurance premiums from being raised after having an accident
Auto insurance rates are known for going up after a consumer has been in an accident, but there are ways to prevent this from happening. In general, avoiding a sharp rise in auto insurance premiums requires some shopping around before getting into an accident, but there are a few things you can do after causing an accident that can prevent your premiums from going up too much.
Likely Effects
In general, consumers who opt for higher quality insurance coverage do not see their rates rise as much as those who chose lower quality insurance. High quality insurance companies are known for their good customer service and they have an outlook towards their customers that focuses on retaining customers for many years.
Many companies that advertise as low cost insurance providers are only interested in collecting immediate profits. While these providers are a source of cheap insurance, as soon as their clients are in an accident, they will raise rates significantly. This is because these companies know that shopping for new insurance immediately after an accident is extremely difficult. Essentially, these companies know that their customers are stuck for at least six months before they can start shopping for a new company.
After the Accident
If you have just been in an accident, however, being told that you should have shopped more carefully for auto insurance isn’t much help. It is possible to limit the amount that your premiums will rise after an accident, however. Start by documenting the damage to all property and persons immediately after the crash. In many cases, your new premium will be based on the amount of damage that your insurance company had to pay for. By being able to compare the damage you recorded to the damage report provided by the insurance company, it may be possible to lower the insurance company’s damage estimate.
Also be sure to review the police report carefully and follow up promptly on any charges. Allowing tickets to go unpaid or missing court dates can result in additional fines, jail time, and/or your license being revoked. All of these cases provide an insurance company with grounds to further increase your rates or drop your policy. In addition to avoiding these penalties, in many states charges can be reduced if you show that you have complied with all of the court orders. Other states will allow charges to be reduced and/or remove points from your license if you agree to attend traffic school. Many insurance companies will not increase rates as much for these lesser charges, or will offer a discount to anyone who has completed these classes.
When he’s not reading about the latest developments in car tech, Miles Walker looks at how to compare car insurance over at CarinsuranceComparison.Org. His latest article looked at the best Nevada car insurance.