Are you afraid of making the auto insurance claim will raise your rates then this fear is fully justified. As the premium rate will increase to 41 percent on average just after making one claim of 2000$. That’s will be about 370$ annually. Remember that the premium can haunt you for many years. Auto insurance is one of the things which people buy for decades and hoping that never to use. Many drivers avoid filing the minor claim after the accident because they are having a fear of rising amount of premium. So always shop around for the coverage either with the existing insurance company or the new insurance company. This concern don’t stop after the accident whereas many policy holders worry about the moving violations which include the speeding tickets all such things if in your record can increase the rates for years.
How much insurance rates go up after the accident
If you get in the accident which is caused by the other driver then insurance company of other driver will pay for your damages. Remember your own rates are not affected. If you are legally responsible then it will surely increase your risk profile because at that time your insurance company has to pay for the damage which also includes the medical expenses which is caused to others by your mistake.
Increasing rates of insurance are very common after the accident. So assume automatically that your rate will increase just after the single mistake. If accident occurred and it seems that you are not the defaulter then your premium will not change. At the time of buying the insurance policies always consider those insurance companies which are offering the accident forgiveness because this perk will not cost any extra amount but it prevent your rates from going up after your first accident or mistake.
How the auto claims affect the auto insurance rates?
Many drivers are hesitating to file the claim with their auto insurance companies because they have the fear that their rate will increase automatically. Sometime your car insurance rates increase but it depends on your car insurance companies, the situation of the incident or whether you are having the accident forgiveness in your insurance policy. No one can predict the increasing rates after filing the claim.
Accident specifics and your rates
Here are some factors which are considered by your insurance company at the time of determining how the auto accident will affect your insurance rates.
- The severity of the accident- the damages caused by the accident can be range from the scratch in the paint to the totaled car. If the amounts of the damages are high then it can surely lead to the higher rate because the insurance company has to make the larger payments.
- The at fault driver- if you are legally responsible for the accident then the car insurance rates will increase. If other driver is responsible for the accident then also some insurance companies will increase the rate of your premiums because you are likely to get in another accident which is posing more risk to your insurance company.
- Your value to the company- remembers that the safe drivers are always the cheaper for car insurance companies to cover. If you are having the safe driving record and you have been with the same insurance company for a long time then you will see less increasing rates in your premium than someone who is having the poor driving record. Some insurance companies are offering a accident forgiveness for the good drivers which means your first accident will not increase the rate of your premiums.
Auto theft and your rates
If your car or any equipment is stolen then you have to make the claim to recover that costs because your insurance company has to pay such loss and you will see the increasing rate in your premium. Keep in mind that if you are living in the area where the crime rates are high then also you have to face the high rates in your premiums. You are presenting the more risk to your insurance company if you become victim of the auto related crime. Higher risk means the higher rates. To file the claim for the theft you need the comprehensive coverage.
Your insurance company and your rates
Every insurance company has its own policies which determine the effect of your car insurance rates in case of the accident, theft. For instance some company will increase your premium for any claim if:
- Damage occurs as little as for 2$
- The accident was not your fault.
Whereas some companies will not increase your rates if:
- You are not responsible for the accident
- There were only the small cost of damages
- You are having the good driving record
- It was your first accident or mistake
Policies of accident forgiveness
Many insurance companies are offering the accident forgiveness to their customers or a client who is having the good driving record. The accident forgiveness program allows the good drivers to have the one accident which will not increase the rate of their premium. Talk to your car insurance company and ask whether they are providing such program or not.
The importance of filing the claim
When you get in the accident or your car is stolen then do not avoid filing the claim because you are worried that your rates will skyrocket. The increasing in the auto insurance rates is not always permanent. Many companies increase the rates temporarily which will drop each year if you don’t get in another accident. Within few years your insurance rates can return to the pre accident level.
Always consider the policies of your insurance companies and the details of the accident to determine whether you want to file the claim or not. Filing the claim will allows you to:
- Present your side of the story
- Your insurance company will investigate the accident
- Always use your coverage to pay for your damages or injuries or for the other party.
Why car insurance rates go up after the accidents
When you get in the accident then rate of insurance premium will increase for sure. Your surcharge will depend on your state and on your insurance company. Sometimes you see that your rates increases even you didn’t cause the accident. The insurance companies are the risk averse. When you get in the accident you are viewed as the higher risk. Remember that the increasing rate due to the accident and the amount of the increase is different by every insurance company.
Handling the increasing rate
It is very important to know the details of your car insurance policy. When you are buying the car insurance policy doesn’t forget to ask about which situation will lead to the increasing rates. If you are handed the surcharge then discuss your options with your insurance company. You can also keep your premium low just by increasing your deductibles if your surcharge is unavoidable. If you think that your premium is too high to handle then you can shop around to see and can find a better rate with insurance company as every company has its own rate.
How much insurance premium goes up when claiming for a non-collision accident?
First of all you need to be very careful. There are two types of the property damage coverage on the standard insurance policy, comprehensive and the collision. The non-collision implies that you are referring to the comprehensive claim. The collision accident occurs when your car hit anything which include people, vehicles or any property but the only exception is that if your car hit animal. Keep in mind that if you forget to put the parking brake and your car rolls down and crashes into the pole then it is still the collision claim. When it comes to the insurance premiums then these claims are also treated in the same way.
The comprehensive claim is something that could happen with your car other than hitting others. Theft, falling object, fire or natural disasters all such things are covered under the comprehensive coverage. Damages caused by the animals are also covered under this coverage.
Remember the rating factors for the insurance policies are different from state to state. In California the claims and moving violations are assigned on point value between 0 to 2. Each point is equal in weight which affects the insurance premium.
How much rate increase after the speeding ticket
If you are having the speeding ticket in your record then you are considered as the risky driver by your insurance companies.
- After one speeding ticket: the rate will increase from 100$ to 150$ a year. Some insurance companies will increase the rates by hundred dollars a year.
- After two speeding ticket: many insurance companies will charge slightly more after the second offence. Some insurance companies charge harsh penalties after the first offence than after the second offence.
- After three speeding ticket: after the two speeding tickets you have to pay 200$ to 1000$ a year more for the insurance.
In many case the speeding ticket will influence what you are paying for the insurance. In many cases the rates are increases after each and every ticket. Keep in mind that the moving violation can also affect the rate of your car insurance.
Examples of minor moving violations:
- Rolling stop
- Illegal use of the carpool lane
- Equipment violations
- License restriction violation
These minor violations will not show up on your insurer radar. But having too many penalties points on your record will not look good to your insurance company. When they see your driving history they will surely determine the higher rates.
Examples of the moderate and severe moving violations:
- Failure to the yield
- Illegal turning
- Hit and run
- Driving without the insurance
- The street racing
These violations can add the serious points to your driving record which results to the increasing insurance ranging from the mild to the extreme. Don’t forget to compare the rates of different insurance companies because the rates of one insurance company might be far different from another insurance company.
A strategy to save the cost of your insurance policy
Try to understand the logic behind filing the claim in the event of the larger loss. You must also need to know how to save few dollars on your auto insurance premiums. Don’t file the claim in the case of the minor loss because having the low deductible in your policy makes the no financial sense. If you are planning to pay the 500$ to 1000$ for the damages from your own pocket then set this amount aside in the interest of bearing the saving account and increase your insurance deductibles to match the number. The increasing deductibles will leads to lower your insurance rates.
To avoid your rates from going up you just have to be more careful driver. Try to keep your loss history report clean. Don’t file the small claims as it is not the point of the insurance.