Car accidents occur in all places that there are drivers. It is inevitable that every one driver will get into a minor car accident at last once on their lives, usually something that only damages the car slightly but sometimes major accidents do happen. Thankfully, to take care of such things there is car insurance. Though, does an accident affect insurance rates?

Sometimes, accidents can affect your insurance rate, but there are some factors that do affect this. To understand more about this works, you need to know more about car insurance. Some companies start to increase an insurance rate the time that a claim is submitted. Sometimes this isn\’t the case for the first claim, but it usually is for the claims made afterward.

There are different reasons that an accident can affect an insurance claim. If the driver at fault is the policy holder, then the insurance rate is more likely to go up as well as your risk factor. If an insurance company considers you to be a risky driver, then they will charge you more if they think you will get into more accidents. If it is not your fault, then it probably will not affect your insurance, but if you have made many claims then it is possible that it will.

A lot of people like taking advantage of discounts in order to lessen the amount of money that they pay for their insurance. Though, if you get into an accident, it may make your discounts invalid. For example, if you have a safe driver or no accidents discount, after filing a claim you may no longer be able to receive this discount.

Sometimes, a policy is cancelled because the policy holder made so many claims that it surpassed the limit of the insurance provider. You should definitely consider this possibility before you file too many claims. If your policy is cancelled by an insurer you may find it difficult to find any other companies to provide you with insurance afterwards.

Aside from avoiding accidents so that you won\’t get injuries or have to file a claim, it is important to avoid DUIs and other serious traffic violations. If you get these, then it is guaranteed that your insurance rate will go up. So if you want to save money as well as save your own life and the lives of those near you, avoid accidents at all costs.

An accident can be on your record of the insurer for a year up to two years. This proves that accidents definitely affect your insurance for a long time to come, if you are the driver that is at fault. This provides all the more reason to avoid getting into an accident as much as possible.

So now you know the many valid reasons behind why accident affect insurance. With this knowledge, you should do your best to be a safe driver and to avoid all situations which may lead to an accident at all costs, for the sake of your safety and your wallet as well.

Author Bio: Does an accident affect insurance rates? Find out now in our comprehensive guide on how and where to find the best auto insurance with no license .

Category: Finances
Keywords: accident affect insurance, auto insurance with no license