A Look At How An Accident Affect Insurance Rates

We all need to know how an accident affect insurance rates

. The simple truth is that being involved in a car crash raises several issues each of which will affect your automobile insurance rates differently. It is important therefore to inform the insurer about the details pertaining to the crash and you also need to be aware about how the insurer handles the underwriting of the claim.

The good news is that meeting with an accident does not always and necessarily mean that your insurance company will view your policy in a negative way. Even so, you should expect the rates to go up or in the worst case; the insurer might not renew the policy, especially if your crash has been classified as being chargeable.

Each accident is classified in different ways. For example, the insurer will try and determine who was at fault in the accident. If you were not the culprit, then it is highly unlikely that your insurer will increase the rates. If however, you were the guilty party then you can expect the rates to go up and it can also mean that you will no longer be qualified for good driver discounts.

When checking how accident affect insurance rates you must also look at whether injuries were caused and also who was injured. In case injuries affected one or more person, the rates will again go up. If the fault was yours but no one was injured, then there is less to worry about in regard to having to pay higher rates.

The carrier will issue a letter of experience which indicates whether payouts were made to compensate for bodily injury. A police report can also be used as proof that no injuries occurred though not every insurer will be willing to accept this document.

If your car was involved in an accident with an emergency vehicle like a police car or even an ambulance, then this will change your insurance rates considerably. On the other hand, if one or both or all drivers involved in the accident were drunk, then again it pays to check how accident affect insurance. The same is the case if the damage done will cost less than seven hundred and fifty dollars to repair. Such an accident will not be treated as chargeable.

Other aspects to learning how an accident affect insurance rates, includes the period of time that has elapsed since the accident took place, whether citations were issued and how many accidents have you been involved in the last three years.

by: Lance Thorington

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