We’ve all heard that filing a claim can result in increased insurance premiums. That’s why so many of don’t want to use our insurance if we don’t have to. If you’ve been in a wreck, you may be wondering will filing a car accident claim increase my insurance premiums. The answer, it might.
Filing a car insurance claim doesn’t always mean paying more for car insurance. Know your policy. Understand the severity of your crash and get your options before you decide on using your insurance. Here are some factors that insurance companies consider when dabbling in rate hikes:
- How Bad was the Accident?
Was this a major collision? Are people hurt and going to the hospital? Did the airbags deploy? Or is this a broken windshield or damage to the bumper?
The severity of the crash can impact the raising of rates. Obviously, major crashes cost more. Although, sometimes the damage to the car in no way indicates the harm to the passengers.
- Are you a Good Driver?
Insurance companies love good drivers. If you aren’t a frequent flyer of the safety classes following speeding tickets, you are probably not looking at a rate hike after a minor crash.
Decades of safe driving usually equates to a lower risk driver. Lower risk drivers tend to get better rates on insurance. So, if you are steering clear of the highway patrol and haven’t had many crashes, your rates are more likely to stay competitive.
- Was the Accident Your Fault?
If the wreck wasn’t your fault, you’re at less risk of a rate increase. Sitting in traffic when you are rear ended by someone, isn’t your fault, and there isn’t much you can do to prevent the wreck. Most insurance companies get this. As a result, you are less likely to be penalized.
If on the other hand, you cause an accident while driving drunk or recklessly, you can certainly expect changes to your insurance. You can count on a jump in premiums, if not a non-renewal of your policy.
- What Does Your Policy Say?
Know you policy in advance. Before you purchase insurance, be sure to have a talk with your agent about accidents and premiums. Some companies have accident forgiveness. Others do not. Either way, understand how claims will impact your premiums before you buy the coverage.
Also, ask your agent if they have to report any potential claims you discuss with them. You may want to discuss the accident with your agent before you decide to make the claim. Know in advance whether the agent is required to report that conversation.
Lastly, it is important to know that the Texas Insurance Code prohibits your insurance company from raising your premiums after a single claim. If you've been injured in a car accident and need help, contact Chelsie King Garza today.
