Home | List of Articles | Submit an Article | Contact Us

I Was In An Accident, Will My Car Insurance Rates Go Up?

You were on the phone, got distracted and before you knew it traffic had stopped, giving you no room to stop and you rear end the girl in front of you. Or, let's say you're driving along and a deer jumps out and rams into the side of your door.

Now, let's say you need to file and claim and get your car fixed. But, are your rates going to go up?

In the first case, more than likely they will depending on how much your insurance company pays out to fix both cars and medical bills if anyone was injured.

But, in the second example, since this will be a comprehensive claim your rates should not see an increase at your renewal. Unless you have a long history of hitting deer then the people from PETA will be out to get you. Or if you file a lot of small glass damage claims then your rates could be affected or you may have to pay a higher deductible for comprehensive in which case small glass damage will be less than your deductible and you will pay out of pocket.

Part 2: How long does an accident stay on my record?

Ok, so back to the example where you rear ended someone. We have already established that you are going to see your insurance rates go up. Now, we need to find out how long and how much will they go up.

State insurance boards usually allow insurance companies to charge for a accident for 3 years from the day they started charging for it. Not from the time you got into the accident. You got in the accident in December and your policy runs from October to April. Your rates won't be affected until April of the next year and the surcharge will drop off 3 years from that April.

How much will your rates go up? Are they trying to get back the money they paid out for my claim? You can usually expect a rate increase of between 20-40% on average per six months. They could go up even more if you lose some discounts you were getting, such as a claim free discount.

The increase is not a recoupment of the monies paid out by your insurance company. It is designed to charge you a premium based on the risk, or chance, that you will get into another accident in the next 3 years. You are a higher risk to the insurance company and they are able to charge you for the higher risk you present to them.

If it was based on how much the insurance company paid out then you wouldn't be able to afford it if you totaled out your 2004 Nissan Maxima at $25,000 and you had to pay that back within the 3 year surcharge period. Makes sense? Good, now get off the cell phone!

A. Chris Tijerina has over 3 years of experience in the auto insurance industry and has seen many different people deal with auto insurance related problems. http://www.insurance-for-cars.com answers many of the questions facing drivers today.

Related Articles:

I Was In An Accident, Will My Car Insurance Rates Go Up? - You were on the phone, got distracted and before you knew it traffic had stopped, giving you no room to stop and you rear end the girl in front of you. Or, let's say you're driving along and a deer jumps out and rams into the side of your door. Now, let's say you need to file and claim and get your car fixed. But, are your rates going to ...

Your First Car Auction - You are about to go to your first car auction. You can feel the excitement in the air. There are so many cars to choose from. But do you really know what to expect at a car auction? Do you know the legalities that occur at a car auction? Most people get in way over there heads at a car auction. If this is your first car auction, you better come pre ...

Radio Control Cars - Which Type Is Right for You or Your Child? - There are several factors to consider before choosing which type of radio control cars to buy. Don't just jump in head first. Making the correct choices, up front, can save you a lot of time and money down the road. Take a few minutes to read this helpful article so you can start out in the right direction. First, it is importan ...

Enroll in Car College - One of the most overlooked opportunities for learning and personal growth is the time we spend in our cars. There really isn't much we can do safely in our car but drive. I know I see people doing all kinds of things such as curling their hair, putting their makeup on and talking on the telephone. All of those things are distracting. There is somet ...

Go, Go, Go, With the TomTom Go Car Navigation System - The TomTom Go is a rather small package which contains everything you need for automobile navigation. It's designed as a ready-to-go product with software, maps, and car mount that works straight out of the box (well, almost). Let's take a look at what it can do. It does require a little set up. Connect the unit to your PC, load one of the C ...

Finding The Perfect Car For You - Your car may be the second largest purchase you make in your lifetime. You must take your time and not let it become an impulse decision. Before you go out browsing dealer lots consider the following: How will I use my new car, truck or sport utility vehicle? A mini-van will fit fine in a large family but might be out of ...

Selling Your Car - What Is My Car Worth? - The first question you must ask when selling your car is, 'How much is my car worth?' Well, this question is actually incomplete. You really need to ask three questions and you get three different answers.... The questions you must get answered depend on where you want to sell it. They are: How much is it worth when I sell it to a: ...

For a Complete list of Articles with summaries Click Here