How Auto Insurance affect Car Accident Claims

An auto insurance company protects you against driver negligence and pays you compensation in case of an accident. If you get into a collision whether you were at fault or not contact your insurance company. Be sure to file a claim this allows for your insurer to pay for your vehicle repairs and if you were at fault repairs for the other vehicles. Also, they pay for injuries suffered by you and other on the collision. Filing a claim causes you to be in a negative standing with your insurance company, which leads insurance rates to rise.

There are certain mitigating factors that insurers look for before increasing insurance rates; this includes; driving record, the number of claims in the past and amount of money paid out from insurance claims.  Generally, insurance rates don’t automatically increase after an accident. Besides, minor accidents or fender benders don’t equate to rise in prices if you have a record of safe driving.

Auto insurance premiums increase if you were at fault in a major accident and according to your past driving record. An insurer could increase the rate even if you weren’t at fault this is because statistically according to the insurer you are a high-risk policy. If you are in a no-fault state odds are high that your premium will increase even if the accident was not your fault. Remember, auto accident claims are complicated and you need legal help from a reputable law firm such as Ladah Law.

Increase in premium rates depend on different factors this include:-

  • Who caused the accident
  • Were people injured
  • Was there significant property damage
  • Was speeding involved
  • Were you under the influence of drugs

Although the increase in rates depends on the state you live in, some state laws in place can make it illegal. It may be tricky to figure out who is at fault especially when there are no witnesses or hard evidence. Therefore it is up to the two insurance companies to decide who is at fault. In the meantime, you can request your insurance agency to fix damages as they hash out details with the other company. On a different note, most accidents are wiped clean from your driving record in three to five years except for DUIs and accidents resulting to death or serious injuries.

However, you can position yourself after an accident to enjoy lower rates. You can do this by seeking if you are eligible for accident forgiveness, this means avoiding collisions or speeding tickets within a specified amount of time. Another way it to payout for minor accidents this will include fixing the scratch on your car. Take a safe driving course and submit it to your insurer this gives you a higher chance of lowered premiums.

Finally, it’s better to be safe with your auto insurance than getting increased premiums. Drive safe and avoid getting tangled into situations that eat up your insurance claim, before paying or committing to insurance company’s read the terms and conditions that lead to increased premiums.



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