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How Car Accident Affects Your Car Insurance?

You should learn about How Car Accident Affects Your Car Insurance?. There might be a number of reasons for defensive driving. You are well aware of the benefits of driving safely and the hazards associated with harsh and careless driving. Along with a large number of benefits resulted from safe driving, lower premiums of car insurance plans might be one of the benefits. Your car insurance premiums really depend upon your car driving habits and how safely your drive car.

As per one study conducted by Quadrant Information Services, in 2017 the average increased rate of $2000 claim just over 45%. It means that if your insurer has to pay more than $2000 in an accident claim, most probably you will have to pay 45% more premiums when you will renew your car insurance policy.

Usually, after an accident, your premium rates will go high but it is not true all the times. It is true that a car accident will affect the rates of your premiums drastically. Actually, driving habits is one of the two major factors which insurance companies take seriously when they are estimating the premium rates for your car insurance plans.

If you have a car accident history especially accidents are occurred due to your fault. It is a fair reason for the insurance companies to cost you more premiums as you are a risky driver and there is a possibility that insurance provider company will have to pay for the accidental damages.

You won’t have to pay increased premiums every time. The insurance company will evaluate the credibility of the customer and will decide accordingly. If you have maintained your clean record over the years for fair claims. The insurance company will not account for minor accidental losses like bumpers, fenders and not at fault accidents.

The first thing to remember rates won’t always go up if you file a claim. Insurers are often pretty reasonable when it comes to what does or doesn’t merit a premium increase. If you’ve maintained a clean record over the years, you’re a lot less likely to get penalized for things like minor fender benders and not-at-fault collisions.

You Premium rates will increase if.

  1. The accident occurred due to your fault.
  2. The cost of repairing the damage is huge.
  3. If you have claimed more claim than the actual loss.
  4. If you have filed the second claim within three years.
  5. The states where it is legislatively required to pay for your damages irrespective of who is on fault.

Your premium rates will remain unchanged if….

  1. Another driver is 100% at fault.
  2. If your insurance provider offers accident forgiveness claim.
  3. You have a very clean driving record and it is a minor accident.
  4. It is a minor claim and you do not file any claim to your insurer for many years.

Hence these are some factors which will affect your car insurance plans either positively or negatively. You should be very careful regarding your habits as careless driving will cause you to pay more amount in the future.

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