Reasons Why Premiums are High After at Fault and No fault Accidents

Accidents are very upsetting, especially if it is a no-fault accident. The worst thing that may happen is either you are hurt or your car is smashed. Good thing that your vehicle is insured, so it is the job of the car insurance company to handle the financial concerns. But, are you sure that everything is taken care of? Well, think again.

In most instances, car accidents result in a severe cash outflow due to increased rates in insurance premiums. This is true even though the accident is not your fault. So, before you get auto insurance, make sure that you understand the policies well. Usually, the majority of car insurance companies today use the risk factor as the basis of their monthly premiums. If you have a bad driving record some time ago, there is a possibility that you will still be considered at fault for the most recent accident.

Honestly, car insurance rates are often increased because auto insurance companies fear that the insured might only use road accidents as an excuse to make money on them. It may sound absurd, but it really happens. If you have a bad driving record, you will be considered as a high-risk driver. Most likely, you will have to pay for high car insurance premiums because of the accidents that you have encountered in the past.

If you have a good record, then you do not have to worry about any increase of premiums after a no-fault accident. But if you have a related violation prior to the accident that is not your fault, then expect for an increase in your insurance premiums. Keep in mind that the length of time may differ from one company to another. So, if you have experienced an accident months or years ago before this no-fault accident happened, the insurance firm will definitely ask you to pay for bigger amount of premiums since you are already labeled as high-risk driver.

Always remember that it is the authorities who decide which party is at fault or no fault in the car accident. Usually, the one who is ticketed is considered as the party liable for the incident. Most car insurance companies implement different policies. But, in general, they study your general vulnerability to accidents. There are some car insurance brokers who absolve past accidents depending on the length of time when the accident occurred.

In addition, you must be aware of the specific accidents that you are involved with. The number of accidents you have encountered can make your premiums go higher. Sometimes you still suffer from high premiums even if the accident is not your fault. You cannot blame the auto insurance companies for being so strict. Your bad driving habits make you a high-risk driver.

So, the next time you get high premiums, check your driving record. If you have excellent record, then, there is no reason to be afraid of increase in car insurance rates. But, if you are accident-prone, then expect your premiums to increase every now and then. If you want to understand more about how premiums increase after at fault and no-fault accidents, you may consider seeking advice from car insurance brokers in your locality. You may also car insurance online to get insurance quotes that will help you compare insurance and find the right coverage that you are looking for.

It is important to talk to your insurance agent about your premiums and claims. Tell them about your problem. If you are not happy with the result, you have the option to file for complaint with the agencies in the state to look into your case. However, if your driving record is bad, this is the main reason why you have a very high insurance premium. This only means that the higher the risk, the higher the car insurance rate that you have to pay.