The main purpose of the auto insurance is to offer financial protection in case of an accident. Even so, an accident may be the very reason for increasing premiums. Understanding how car accidents affect your auto insurance rates can help you keep your premium at a more affordable price. Having a car accident, marks the driver as a risky Driver. Only an At-fault accident would increase premiums while Not At-Fault accidents are non-chargeable.
A Single Accident Caused By You
Some insurance providers will overlook a single accident. After all, humans make mistakes from time to time. However, other insurance providers may raise your rates after an accident that was caused by you. The price hike directly correlates with the risk of insuring you. Luckily, one transgression won’t hang above your head forever, if you caused the accident, it would be on your License Record for 3-5 years. Your premiums are favorably to drop to pre-accident rates after three years or so if you’ve gone claim-free. Stay without accidents and tickets to get the lower favorable insurance premium. You control your premium by following the rules and regulations of the state. Drive Safe, be safe and lower your Insurance premium.
Multiple Accidents Caused By You
If you cause several accidents (especially within a short period of time), you may see a sharp increase in your rates. Why? It’s the beginnings of a pattern, one that is too risky for insurers to take on for the same price they offer to safe drivers with a proven record. The rate at which your premium increases will vary by state, depending on state laws.
Accidents Caused By Other Drivers
Most insurance providers understand the frustration and inconvenience caused by getting into an accident when the fault is on the other driver. In these cases, the other driver’s insurance is responsible for covering your expenses. That means that it doesn’t cost your insurance provider, so there are no expenses to transfer onto you. While every case is different, it’s not uncommon for your rates to remain the same in these situations.
Need to file a claim? Call (562) 273-3989 for more information on Los Angeles auto insurance.