You have to understand that different situations affect your premiums in different ways. There are several factors that your insurance company takes into account when evaluating your claim. Here are five things your insurers carefully review when car accidents happen which can have a result on your premium.
2) Your policy’s detailsBecause of the competition in the insurance industry, some insurers will now give you a freebie called "accident forgiveness” before rates begins to increase. It is significant to note that accident forgiveness may differ among the policies of different insurance companies. Make sure you check with your agent so you know the specifics.
3) Your driving record
For most insurance companies, you are considered low-risk if you don’t have any tickets or accidents on your driving record. Having a driving record full of tickets or accidents can increase your premium or make you ineligible altogether.
Furthermore, car insurance companies typically reward you for being a loyal customer. If you have a safe driving record and you have been with them for quite some time, your insurance company may reward you with accident forgiveness or loyalty discounts.
4) Depending on who’s to blameWhen the other party is obviously the one to blame in the car accident, they’ll probably be the one stuck with the bill and the raising premiums. Car insurance companies will evaluate that to determine who’s at fault and if it really isn’t your fault, you probably won’t see an increase in your rate. However, if you were driving recklessly, they can raise your rate or even cancel your policy.
5) No-fault StatesIn “no-fault” states, there are laws in place that say if you are injured, the health care provider has to accept your insurance regardless of who is at fault. The insurance companies will still determine who was at fault in the accident and that person’s rates may climb due to the accident. If your insurance company paid for your medical bills but you weren’t at fault, your company will get the money back from the at-fault party’s insurance company in a process known as subrogation.
When you get into an accident, big or small, it is best to inform your insurer about the incident. They will need details to help them decide whether they should bump up your rates or not. Since driving experience is one factor that can influence this decision, always make it a point to drive safely. It can save your life and some expenses.
Valencia Insurance Group provides high quality insurance service to our valued clients. To help you protect your car, talk to us today by calling (772) 344-8899 or visit our office today. Get a free quote from us by clicking here.