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Does a Car Accident Raise My Insurance Payment?

Posted December 30, 2019 in Auto Insurance

2 Min Read: 

A study by insurancequotes.com found drivers who make one insurance claim boost the cost of their auto insurance by up to 41%.

It is likely that if you are involved in a car accident, the rate of your car insurance will increase.

It is likely that if you are involved in a car accident, the rate of your car insurance will increase.

A car accident, whether your fault or not, has a high chance of sending the price of your auto insurance rate up, but there are ways to avoid this or help offset the cost.

If you caused the accident, it is likely your insurance rates will rise. The severity of the accident and if there was bodily injury will determine how stark the increase will be.

According to insure.com, the average annual car insurance rate is $1,461 and increased to $2,769 after one at-fault bodily injury accident, which is a 92% increase.

What Determines Auto Insurance Rates?

Three main factors that will decide your auto insurance rate:

  • Personal vehicle––If your car or motorcycle is more advanced and will cost more to repair, it is likely to cost more to insure
  • Place of residence––The safety around where you will park your car every night and the community you live in will dictate the rate of your auto insurance
  • Track record––If your driving record is full of traffic violations, accidents, and claims, the price of your auto insurance will increase

What Are the Main Types of Claims?

A person may file a claim to their insurance company after one of the following:

  • Accident
  • Theft
  • Vandalism
  • Weather
  • Animal collisions

The following is a minimum requirement for all insurance carriers to offer in CA:

  • $15,000 for personal injury or death of one individual
  • $30,000 for the injury or death of one individual
  • $5,000 for damaging another vehicle or property

However, these limits rarely cover everything; damage and injury to others can cost you much more than these limits, meaning that you’re not protected from paying out-of-pocket expenses.

When Should I Not File an Insurance Claim?

It is important to check the details of your auto insurance company, which may require you to report any accident that you are involved with.

If these requirements do not exist, it might be smart to avoid filing a claim if the vehicle repair costs are under the deductible or barely above it.

Want to Learn More?

If you want to learn more about auto insurance and its benefits, call our Corona office at (951) 368-0700 or fill out our online contact form.

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