Whenever you get involved in an accident the first question that comes to your mind is the amount of cost that will be incurred on your auto insurance premium. An increase in the premium is certain and exceptions are made in cases where the accident has been of minor nature. The rate of change in the premium is based on many factors like, the severity of the accident, the amount of fault on the part of the policy holder, the amount of claim filed by the victim and the policy holder, the type of traffic violation, etc.
The rate of premium which increases at the event of an accident is different in every insurance company. A recent survey shows that there can be steep increase in your premiums when you get involved in an accident. Drivers who received a ticket for the accident had an increase of fifty eight percent in their rate of auto insurance policies. Customers who influenced a claim from the victim saw an increase of fifty two percent in their annual premium rate.
The increase in the rate of premium is implemented at time of policy renewal. But if the customers fail to inform the insurance company about the accident and nobody makes any type of claims then the insurance company remains unaware about the accident. When they get to know about the incident, they can charge extra penalty for your behavior. If you change the insurance company after the occurrence of accident, then the new company will take some time to find out about your accident when they check your driving records. Depending on the rules of the new insurance company, they might deny you the right to purchase an auto insurance policy from their company due to your irresponsible demeanor.
There are some insurance policies who prevent the increase in premiums if the person is found too be involved in a minor accident which did not earn him a ticket or which did not injure any person or didn't cause damage to any property. The outcome of being involved in an accident when the person is driving under the influence of alcohol can be severe. Besides a higher rate of auto insurance premium the other things that worries people (who are responsible for an automobile accident) most is the suspension of their driving license and spending days in jail. The humiliation of spending your time in jail is much more than paying higher amounts for the auto insurance premium.
You can read more about accidents and how they affect auto insurance at Wawanesa Insurance.
David Hunter writes articles on auto and home insurance over the last few years.
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