subject: How Does An Accident Affect Insurance Premiums? [print this page] If you have an accident it may affect your insurance premiums. There are many deciding factors which can determine the outcome. The first factor might be a person's driving history. The second factor could be the age of the driver. A third factor might be the location that the driver lives. And finally, the fault of the driver will also determine insurance premiums. These are just some of the ways that an accident affect insurance premiums.
What is the history of the driver in question? Is this a first accident or is there a driving pattern that shows poor driving habits? An insurance company might forgive the driver if it was a first offence or if a previous accident happened more than three years ago.
Is this a teenage driver? Teenage drivers have higher rates because they do not have a lot of driving experience. It is assumed that they will make a few errors as they are learning to drive. A accident which occurs due to a teenage or younger driver will have an increase in premiums.
The location where one lives determines insurance rates. An accident affect insurance premiums in a larger city or town will have a higher increase rather than a small city. There is a greater possibility for a collision with a larger population as more people are on the road.
If the accident was not your fault, then your insurance premium should not increase. This will be determined by the police officer that comes to the scene of the accident, or by the judge in court. If you caused the accident then you should expect a new rate when it is time to renew your policy.
If someone is under the influence of drugs or alcohol then not only will they have higher insurance, but their policy might also become cancelled. There will also be a chance that jail time might be served along with a criminal record and suspension of their driving ability.
Accidents have the possibility of raising your insurance premiums if you were the one at fault. You can take driving classes to lower the points gained from the incident. Most accidents have a time limit in which they can be used to determine your rate. If it does happen to increase, you should compare other insurance companies to try and see if you can get a better rate until the accident is removed off your record.
by: Lance Thorington
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