Having a car accident is troubling enough, but there’s also the potential hike in your insurance costs to consider. While a post-accident spike in your rate is often unavoidable, knowing how and what to anticipate can help you plan accordingly. Here are a few insider’s details to bear in mind.
What Kinds Of Accidents Affect My Insurance Costs?
Any accident in which you’re at fault can result in higher insurance costs. Depending upon the situation, your insurance costs can even go up when you’re not at fault. Some companies even raise your rates to penalize moving violations. Though very seldom, your costs might not go up at all after you file a claim.
How Much Can My Insurance Costs Increase?
Your rates can increase a minimum of 10 percent and up to 40 percent. Factors affecting such increases include your age and the age of your policy at the time of your accident.
For example, if you’re between 25 and 44 years old and you have your first accident within the first 12 months of your policy, your rates could increase by a higher percentage. A similar situation involving an 18-year-old might result in a rate increase of a much higher percentage. Because younger and older drivers tend to have more accidents than other subsets of drivers, their insurance rates are automatically higher in general.
How Do Insurers Determine What Rates To Charge And When?
Most car insurance companies take their cue from the Insurance Services Office (ISO), an international risk management provider that suggests industry standards for increasing premiums.
Car insurance companies then compile their rates, potential increases and corresponding factors in something called a “surcharge schedule,” available by law in some states to any given company’s policyholders.
What If My Insurance Costs Don’t Go Up At All?
This is rare, though not impossible. Some insurance companies look at the bigger picture when you file a claim. They examine your history and weigh it against the likelihood of your having another accident. If your record is clean, then your claim won’t result in a rate increase.
Other companies give you a one-time pass. They take for granted you’ll have at least one bang-up, so they don’t penalize you when it occurs.
What If I Need Help With Filing A Claim After My Auto Accident?
Contact Stockard, Johnston, Brown, Netardus & Doyle, P.C. today. Let us place our years of experience with auto accident cases, claims and settlements at your disposal. Dealing with any insurance company is intimidating enough, let alone after you’ve been in a nasty bender and have yourself and your family to consider. Don’t risk the stress. We’ll advocate for you, protect your interests, and help you achieve the best outcome possible.