4 Simple Ways to Reduce Car Insurance After Accident
Either you swerved after seeing a skunk or you just had a bad day, wrecking your ride does not mean that your car insurance will double. Still, there is a slight chance that even if you are not injured at the scene, you could feel some pain in your pocket the moment your insurance is up for renewal. That is simply because insurers tend to raise premiums for drivers who have recently been in an accident. In case you did not know, the premium refers to the amount you periodically pay to the company and is meant for coverage. However, there is also a chance for this premium to stay exactly the same. With the right insurance company — or some effective clever maneuvering— you can always save loads of money on car insurance after accident.
If you are to blame or the insurer just feels like you have been in countless accidents already, the chances of your premium increasing are high. Keep in mind, however, that the exact amount you will have to pay greatly varies from one insurance company to another and it usually depends on the severity of the accident. But if you are to be blamed and someone got hurt, then it is very likely for you to lose the so-called good driver discount; hence the 20 to 25 percent increase in premium pay. There is no need to fret, though. Here are some effective ways on how you can put a stop on any premium increases following car insurance after accident.
#1. Inform the Car Insurance After Accident
When you cause a minor accident and no one is hurt or you are simply not to be blamed, the temptation to keep your insurance company in the dark is likely to surface. After all, they could not increase your premium if they do not know about it. Unfortunately, this is wrong. What if the other driver tries to sue you weeks or months later? This means that your failure to report what happened following the accident can result in your insurer refusing to honor the policy. Meaning, you will get stuck with all the legal bills, not to mention the potential judgments residing in the plaintiff’s favor. And yes, those bills are going to crank up high compared to the amount you are paying for premium increase.
Even if the insurance company ends up honoring the policy, you have already deprived them of valuable time. The latter is something that the insurers could have used to investigate the accident and, more importantly, prepare your defense. To put it simply, withholding information will result in you losing the odds of winning the case. And what happens if the insurer gets to pay the claim? Simple: Your premium increases.
#2. Go to a Driving Class
You think this does not belong to the top of car insurance after accident, no? Hate to burst your bubble but it is. If you start dusting off your old notebooks and consider taking a driving course refresher, the insurance company will take it as a sign that you want to improve your driving skills. And believe it or not, this is where they may show mercy on you when the renewal time comes. It is better to decide this on your own than wait for the insurer to ask you. Consider doing it and tell the company about it.
#3. Have Your Deductible Increased
Say, your car insurance company finally decides to raise your premium. There is still a chance for you to lower the amount, and this is through increasing your deductible instead. This is basically the amount that you will have to pay once filing a claim. For example, an increase in deductible from $200 to $500 may result in a significant decrease in your car insurance coverage cost by around 15 to 30 percent. And if you decide for a $1,000 deductible, then you are entitled to a 40 percent or more savings. The math is really simple here. Just make sure that before you do this you have the money to spend just in case you get into another accident.
#4. Check If Your Policy Actually Includes an Accident Forgiveness Clause
According to statistics, most drivers are likely to get into one vehicle accident every 17.9 years. This is why some, if not all, insurers have accepted accidents as part of life. Interestingly, this also means that they are more than willing to ignore your first accident and let your premium stay the same. Of course, the details could vary by company. Some will have no trouble giving you accident forgiveness, while others will only allow such after you have become an accident-free policyholder (at least 3 to 5 years). In some cases, too, insurers will require drivers with no moving violations for about three years.