How accidents affect auto insurance

How accidents affect auto insurance

Unfortunately, many people don’t realize how accidents affect auto insurance until it happens to them! In fact, accidents can affect your insurance in a number of different ways that depend on the details of the accident as well as the insurer’s underwriting guidelines. Sometimes there won’t be a negative impact on your policy premium at all but rates may be increased or the policy may be non-renewed if the accident is classified as chargeable. This classification of chargeable is also dependent on several factors.

Many insurance companies begin their evaluation by measuring the risk factor of the driver and the common characteristics of the claims filed in the past. They compare the statistics of the number of drivers with similar histories and the number of prior accidents and traffic violation citations they have been given to determine what their risk factor is. This is one of the ways how accidents affect auto insurance premiums in a negative way. If a large number of drivers that have been in an accident have a history of prior accidents and are considered to be a high risk, there will probably be much higher premiums that they must pay for the same coverage that other drivers will get for a much lower price.

When considering how accidents affect auto insurance premiums, there are a number of factors that can put you into a higher risk category even though you haven’t had any previous accidents yourself. For instance, males are more aggressive drivers and have been shown to be involved in a greater number of accidents so a man will have higher insurance premiums based on the greater chance that he will be in an accident. The same is also true of young or new drivers. Teenagers are more likely to drive recklessly and be involved in an accident as are new drivers of any age. One way how accidents affect auto insurance is by the likelihood of your having one, not the reality.

In the same way, other statistics determine how accidents affect auto insurance due to the possibility of having one. These include be single, unmarried drivers, drivers with tickets, accidents and violations such as DUI’s, DWI’s and speeding tickets. The city you live in may have a higher number of accidents and a higher risk for drivers. Some types of vehicles will cause you to have a higher insurance premium since they are more often involved in accidents or are more expensive to repair.

To prevent having higher rates as a high risk driver and stop worrying about how accidents affect auto insurance, you can search online for different auto insurance companies. You can get a quick quote online and get auto insurance comparisons of rates from a number of different carriers. Some insurance companies don’t mind taking customers who they don’t consider to be as high a risk as other carriers do and they will give you the rates you need to have coverage for your car. The many ways how accidents affect auto insurance doesn’t have to mean high rates for you!

To read more articles on Auto Insurance, visit Auto Insurance News. They provide many articles about auto insurance.

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