The auto insurance industry makes business decisions that are determined by risk modeling. When actuaries turn in their statistical analyses, underwriters review compliance guidelines and set the amounts you must pay as premium to keep your car insurance policy in effect. When you get into a car accident, there is a good chance your premium payments may increase when it is time to renew your policy, and this is because the accident has placed you in a higher risk category in the eyes of the insurance company.
Even if the accident can be considered to not have been your fault, the insurance company may look at other factors to make their risk determinations. For example, if the accident happened during your commute to work or school on a busy freeway section where many accidents occur, your National City auto insurance company will likely assume you are at an increased risk of another accident. On the other hand, if your car was totaled by a reckless driver going 50 miles per hour in a parking lot, this is a very rare situation that may not increase your premiums by much.
With the above in mind, there are some ways you can prevent a drastic increase of your premiums after a car accident.
Inquire About Accident Forgiveness
On a long enough timeline, actuaries have determined all drivers are bound to get into an accident at least once in their lives. Auto insurance executives are aware of this rate of incidence, which is why some companies include an accident forgiveness clause as part of their policies. Depending on the insurance company, accidents may be forgiven and premiums will not be raised after drivers have been clients for a few years. These forgiveness clauses may have conditions such as not getting tickets for a few years.
Elect to Raise Your Deductible
This method is an exercise in calculated risk. Low deductible amounts are often tied to higher premiums. If you notice your premium payments increasing after an accident, you can ask your insurance agent to raise your deductible so your premium payments stay the same. The dilemma with this decision is that you may need to file a claim in the future and get stuck paying for the entire cost of repairs.
Report the Accident
You may have heard about the practice of not reporting minor accidents to prevent an increase of policy premiums, but this is generally bad advice. Unless the accident was a very slight collision with a family member you can trust, there is always the possibility the other driver will file a claim. Once your insurance company learns about this, your premiums may not only go up, but you may also be refused coverage.
Whether you’ve been in an accident or not, it’s important to make sure you find the most affordable auto insurance to protect yourself in the future. For reliable car insurance quotes, National City drivers can contact American Tri-Star. We also provide affordable RV, motorcycle, and property insurance. Call 619-474-3900 today to speak with one of our friendly agents and receive a free quote.