How Much Do Car Insurance Costs Increase After an Accident?

Nobody ever plans to get into an accident. But it is important to know what to expect in retrospect. If you are held responsible for an accident, your car insurance rates will most likely increase. However, there are a few factors that need to be studied to determine what this surge will be.

Factors that can affect your insurance rates

  • Where you live
  • Which insurance do you use
  • What insurance do you have
  • How much damage was done?

Assuming you were the culpable driver, your rates could increase by up to 46% on average. However, this can be very different depending on where you live. You can find more information about your state’s accident guidelines online to see what the average rate increase is in your area.

Your rate increase also depends on which insurer you use. Many companies offer accident forgiveness programs so you can be clear, especially if this is your first accident. However, it is important to check your insurer’s fault-finding accident insurance policy so that you know what to expect if you are ever into fault.

Your rate increase can also be influenced by the amount of the accident damage. Most auto insurances increase when you are at fault and the accident resulted in damage or personal injury. Additionally, accidents that result in major property damage of $ 2,000 or more can cause your rates to rise even further.

How long will this affect my prices?

Your car insurance rates will go up after an accident, not to punish you, but to simply adjust your plan to better reflect your driving history. Accidents are usually kept on file for 3-5 years. This in turn depends on your condition and the severity of the accident. Accidents resulting from a DUI or reckless driving can stay on your record longer.

How can I lower my prices?

There are a number of things you can do to lower your rates after an accident.

  1. Call your insurer and see if there are any discounts that you are eligible for
  2. Reduce your coverage
  3. Increase your deductible
  4. Increase Your Credit Score
  5. Change insurance company

Accidents happen, but you are insured for them. It can be stressful dealing with a car accident retrospectively, but researching your current insurance policy now can save you time and stress in the future.

For more information on Georgia’s Auto Accident Act, please visit here

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