Sorry to be the bearer of bad news, but it’s been estimated that motor vehicle drivers are involved in some sort of traffic accident every 18 years. Now of course you can get in an accident before you’ve hit that 18-year mark, and it’s more than likely you will. An auto accident can be defined as colliding with another object during travel time, be that into someone’s mailbox or another car.
Having a roadside collision on your driving history can put you in a tough spot. It could raise your insurance premiums and make finding fair quotes on auto insurance nearly impossible. What company would want to insure someone who has been in accident? Wouldn’t they just be viewed as a liability?
That all depends.
CoverHound has found some ways to get you the insurance discount you deserve. Read on to find out more about them.
Rise of the Premiums
If you’re driving record shows that you have been involved in a car accident, your insurance company will determine who was at fault in the collision. If you were the victim in the auto accident, your insurance company will keep your rates as they are. Vice President of the Insurance Information Institute, Loretta Worters, says, “If the accident is not your fault, it’s the first in which you’ve been involved, and your driving history is free of moving violations and/or insurance claims, you may have no premium increase at all.” But should your record show that you were the motorist responsible for the wreck, your insurance company will find you as a liability risk and will increase your premium rates.
Worters goes further to say in her interview with Money Under 30 that if the accident is found to be your fault, your insurance rates could rise by as much as 25 percent. To keep your rates from climbing sky high, here’s what you should do.
Increase Your Insurance Deductible
Insurance companies raise your rates when they have had to make reparations for an accident you caused. If you are willing to pay more out of pocket for the accident, they are willing to lower the premium cost. By increasing your deductible, you have agreed to pay a stipulated amount of money before your insurance has to pay for your claim. If your deductible satisfies the cost of damages, the insurance company won’t have to pay a cent. Raising your deductible incentivizes your insurance agency to lower your premium because they believe you won’t have reason to use it.
Enroll in a Driver’s Ed. Course
Insurance companies increase your premium rates if they have cause to believe you are a reckless driver. As mentioned earlier, if you are the driver responsible for a crash, your insurance agency will raise your premiums. Why? Because in causing an accident, you have cost your insurance provider money in repair and medical costs. To offset those expenses, your insurance company will mark you as a liability and will increase your insurance costs in preparation for the next accident they believe you are likely to cause.
But take heed, motorists who take the initiative to improve their driving skills are rewarded for their efforts. If you enroll in a driver’s education course, complete the program and show your insurance agent the results, they will lower your insurance price. It won’t be lowered to its original cost, but it will be lowered, and that’s what counts!
One more thing: ask about discounts! It never hurts to ask how you can save, and your insurance agent will be happy to work with you. For quotes on auto insurance, stop by CoverHound today.