Accident Affect On Insurance: Where Do You Stand?

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Many drivers are surprised that they have an accident affect on insurance when they get their vehicle insurance renewal. Most insurance companies will increase your premium if you have an accident, under certain circumstances.

Of course, each insurance company is different, with slightly different rules and procedures. They also say that they treat every policy holder on an individual basis, so you need to make enquiries with your insurance provider to find out exactly where you stand.

Some insurance companies will not penalize you if the accident was not your fault; others make no such discrimination between accidents. Some companies let the first accident go without penalty, but if you are involved in a second accident, your premium may rise.

The reasoning behind this action is that you are considered a greater risk of making a claim against your insurance, and so the company moves to cover their liability by charging you more for your insurance. In extreme cases, where you have been involved in multiple accidents, you might even be refused insurance by your company.

Of course, if you don't like the treatment you're getting from your insurer, you can always change companies. That is fine, but remember, you are required by law to answer all questions on an insurance application truthfully, and you will be asked about accidents by any new insurance company you approach.

As a general rule, your insurance is affected for five years after you have had an accident and made a claim, but in some states it is only three years. Make enquiries with any insurance company regarding what the ruling is for where you live.

Accidents are classified by the insurance industry, and the factors affecting these classifications tend to be the same with all insurance companies. Some of the factors that will be used to determine whether or not you will be penalized for an accident include which driver was at fault. If you were the one at fault, you might first lose your good drivers' discount, but another at-fault accident would almost certainly see an increase in your premium.

Other factors are if there were any injuries, if there was an emergency vehicle involved in the accident, if alcohol or drugs were involved with either driver, if you were given a ticket for your part in the accident and the amount of damage that was done to both vehicles.

If your accident was the first one you have had, you will find that your insurance company will be much more forgiving than if you have been involved in more accidents, even if they were not your fault. The number of accidents you have had in the previous three to five years will also be a factor in another insurance company assessing whether or not to insure you.


About the Author:
Many drivers are surprised that they have an accident affect on insurance when they get their vehicle insurance renewal. Don't get caught off guard- get the inside scoop on insurance fraud information for Idaho , now!



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