If you are in a car accident, you do not need to worry that this means your rates will automatically be increased. While an accident can cause your car insurance rates to go up, there are a number of factors the car insurance will take into consideration in order to determine whether or not you will experience an increase. These factors include:

• The cause of your accident
• The severity of your accident
• Your prior record

Each of these factors will be taken into consideration in order to look at the “big picture” when determining if your rates will increase or stay the same.

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The Cause of Your Accident

For the most part, if you are in an accident and it is determined that it was not your fault, you will not experience a rate increase. Your car insurance company will conduct a thorough investigation into the accident in order to determine if it feels you were at fault for the accident. If you were not, you most likely will not need to worry about experiencing an increase.

Even if you are found to be at fault for the accident, your insurance company will consider the surrounding circumstances in order to get a better idea of how negligent you were in the situation. For example, if there was inclement weather or some other factor that may have impacted your driving abilities, the car insurance company may be more lenient.

The Severity of Your Accident

The severity of your accident will also have an impact on whether or not your rates go up. If your accident did not result in a large pay out and if medical expenses were not claimed, you likely will not experience an increase in your rates.

Your Prior Record

If the accident is your fault and this is the first time you have had an accident that was your fault in several years, your auto insurance company will likely “forgive” you for this accident. On the other hand, if you have had many losses within a short period of time, you will likely experience an increase.

All of this information will be taken under consideration after the case has been resolved. If you have had several claims within a short period of time, your insurance company may even decide to no longer keep you as a customer. In this case, the insurance company may cancel your policy right away or may allow your current policy to expire and then will not extend your policy for the following term.

If you do experience an increase in your car insurance rates, they will likely go down after a year if you manage to go claim free for that period of time. Remember, just because the rates were increased, it doesn’t mean that they will stay that way. Be safe, cautious and alert while driving in order to keep your record clean so your rates can be reduced.

 

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