We have all heard that our auto insurance premiums can be affected if we are involved in an accident. However, and contrary to what some people might have told you, being involved in an accident does not automatically mean your insurance premiums are going to go through the roof. In fact, your premiums may not even go up at all.
In the event that you do have to make a claim, your insurance company will take a number of factors into consideration before they decide whether or not your premiums should be increased. First and foremost, they will take into consideration whether the accident was your fault or not. Usually, if you were not at fault, your premiums will not be affected at all, so rather let’s look at a scenario in which you are at fault.
Okay, so you were in an accident, and it was entirely your fault.
1. Have you submitted a claim in the past?
2. If yes, how many times have you claimed?
3. What is the total amount of money they have paid out as a result of your claims?
The harsh reality of the matter is that your auto insurance premiums are almost certainly going to go up if you are involved in an accident and it was your fault. The three questions listed above will only be used in order to determine to what extent your premiums are going to be affected. If you have never claimed before, and your first claim only involves a relatively small amount of money, any increase in your premiums should be negligible.
On the other hand, if you have submitted multiple claims in the past, you can expect to see a dramatic increase in your premiums because as far as your insurance company is concerned, you are a high-risk driver.
Let’s just you have claimed from your insurance company in the past, and it resulted in your premiums increasing by 10%. If you now submit another claim due to an accident in which you were at fault, your premiums could perhaps increase by 20% rather than by 10%. This is because your first claim counts against you as well. Yes, it is like being punished twice for the same crime, but that’s just how insurance companies work.
However, you could also look for car insurance that includes Accident Forgiveness, in which case, previous claims are forgiven in the event that you need to submit another claim.
Many insurance policies will only cover damages and injuries, but they won’t cover legal fees for things like an auto injury accident lawyer. This is something you really do need to look into prior to you signing any contract.
If someone has been injured in an accident you have caused, you need to get an auto injury accident lawyer involved as soon as possible, and as you may well already know, lawyers can cost you a considerable amount of money.