subject: Understanding How Accidents Affect Auto Insurance [print this page] If you have ever had an accident in your automobile you will be aware of the effects that it has on your insurance. If you are going to be getting insurance cover it is very important to be aware of how accidents affect auto insurance cover and the rates of insurance.
If you submit an insurance claim following an accident this will affect the rate you have to pay the next time you get a new insurance policy. The ways that the rates are affected will depend on the insurance company therefore it is a good idea to look around prior to renewing your insurance policy.
One of the first things that you should consider is whether or not the accident was actually your fault. Insurance companies will look at an accident to determine whether or not it was actually your fault. If the accident is considered to be your fault you will probably find that your insurance rate rise however if it is considered to not be your fault then it may not have impact on your rates are all. If you are having regular accidents then the insurance company may consider the accidents to be your fault.
The insurance rates will be increased if you make costly claims against your insurance. When the insurance company is paying out on a claim they will want to want to get back some of the money that they have paid out. They get their money back by increasing the rate that the customer has to pay.
If you make a claim following an accident it will affect the discounts that you could receive. Some insurance companies will actually offer a decreased price as they will offer discounts based on the amount of no claim years that the driver has. As soon as an accident has happened it is very important to consider if it is your fault or not. If it is your fault you may be eliminated from receiving benefits and this will mean that you either pay the same rate as before or pay a higher rate.
If you make any claims on your insurance and the amount reaches the threshold that is set out by the insurance company. You may find that the insurance company will not allow you to cancel the insurance policy. All of these problems will also affect your chances of getting a good deal in the future on your insurance.
by: Lance Thorington
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