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Ways To Prevent Your Insurance Rates from Spiking After An Accident

by Amy Walters

It is understood that you would like to keep the cost of your auto insurance as low as you can. However, because you’ve been involved in an accident, you may wonder if there will probably be a significant increase in your insurance rates and want to know if anything can be done to prevent this from happening. What follows are some factors that could affect your situation.

If you never had an accident before

If you have a collision with another vehicle or someone else’s property, your insurance premiums will probably increase when the time comes to renew your policy, even if you have never been involved in an accident before, However, some insurers will disregard what happened, particularly if there were no injuries and the monetary damage was slight. In that case, that company must have been your insurer for a certain number of years and you must also have a clean driving record to take advantage of this “forgiveness policy.”

If you did not cause the accident

In this situation, the laws in your state may protect you from having to pay more for your insurance. However, this is not automatic because you may be regarded as being accident prone, especially if you have been involved in more than one accident.

As a rule, the other driver’s insurance company will be responsible for paying all expenses, and the expenses your insurer incurs will be limited. However, if those costs happen to be significant because of the unique circumstances of the case, your insurance rates could rise, even though it is acknowledged that you did not cause the collision.

If you your accident was a “fender bender”

For example, another driver could bump you from behind as you are entering the parking lot at the mall. When you get out of your car to survey the situation, you determine that neither vehicle has significant damage and find that no one was hurt.

In this case, you may want to settle things privately, but you should also take the time to take care of all the details. That entails drawing up a written agreement that the other driver will sign which states that you are not liable in any way. This must be done because if the other driver is dishonest, they could claim that you caused the collision, that they were injured, and that you fled the scene and never stopped. Because of this, a car accident lawyer Las Vegas would tell you that even minor accidents should always be reported to the authorities.

If no other vehicle was involved in the accident

If you damage your vehicle while you are on the road but don’t collide with someone else’s property or another car, you may decide to pay for the repairs yourself instead of filing a claim with your insurance company. In most cases, your insurer would like you to report any accident, regardless of the circumstances, but it is also possible to take care of this privately.

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