How Much Can My Auto Rate Increase After One Accident?
Accidents almost always make your insurance rates increase. Whether or not the accident was your fault, your insurance company may have to pay for your involvement in it. Most 'at fault' accidents result in an increase in premium, because the accident will get rated against all of your coverages. When supply decreases and demand increases, costs get more expensive.
If you did not carry enough insurance at the time of your accident you may now be required to carry more insurance. Carrying more insurance equals higher premiums. Some companies may not want to offer you insurance coverage at all after you report an accident.
As I stated earlier, when you are involved in an accident your insurance company may have to pay for your claim - even if the accident was not your fault. These types of coverage - Personal Injury Protection, Medical Protection, Uninsured Motorist, and Collision - will cover you and the people in your vehicle when the accident is not your fault.
If you are 'at fault' for the accident, theses types of coverage - Personal Injury Protection, Property Damage Liability, Bodily Injury Liability, Medical Payments, Collision, and Other than collision - will help cover you, the people in your vehicle, your vehicle, the other party, and the other's party's property.
Now, if you are 'at fault' for the accident, there are various reasons why your rates will increase. The first is having your current insurance coverage premium's reflect the charge for this accident. Insurance companies usually charge 'points' to your policy at its renewal. Depending on the insurance company, these points will be charged to your policies for three, five, or even seven years.
The next more expensive rate will be if your state requires that you carry an SR-22. You will need to carry this form and its necessary coverages if you did not have enough insurance at the time of the accident. Getting an SR-22 will cause you more money and even more aggravation by spending time getting this offense taken care of.
You will need to carry this form and its required coverages for three years - whether or NOT you own a vehicle. There are some insurance companies who do not write SR-22 policies. To make sure you are carrying enough insurance to avoid this form and its required coverages, contact your state's Department of Motor Vehicles.
Another way an accident can increase your rates is due to the basic macroeconomic terms, which I am sure everyone has heard of, supply and demand. When the supply is high and the demand is low as a result the price is low. Conversely, when the supply is low and the demand is high the result is the rates are higher.
This principle also applies to car insurance. When you are 'at-fault' in an accident, there are some companies who will not insure you. You have just cut the supply of insurance companies and increased your demand. As a result, your rate is higher. Like stated previously, some insurance companies will not write SR-22 policies. This further lowers the supply of insurance companies and further increases your demand. And, as a result, you will have a higher insurance rate. And when you add the insurance 'points,' you can see how expensive an accident can be.
Take preventative measures to avoid accidents. Avoid distractions, be aware of your surroundings, and do not drive in adverse weather conditions, if you have a choice. As you can see, an accident can have an impact on your rates, especially if you are at fault for it.
Visit http://www.carinsurance.com for a Car Insurance Quote in your State
John Machmiller is a representative of CarInsurance.com. You can visit CarInsurance.com at http://www.carinsurance.com or contact them at 1-877-327-8728.
CarInsurance.com's online insurance marketplace gives an opportunity to consumers and to insurance companies. We offer the ability to shop for car insurance online.
Consumers can receive quotes from many insurance companies, in some states you are able to purchase your insurance instantly, online. You don't have to drive your car to buy car insurance. Buy online... anytime!
Health Care And Health Insurance Costs Can Be Controlled Through Lifestyle Choices
As you probably know all to well, the cost of healthcare and health insurance premiums continue to increase at levels substantially above the general inflation rate. The reasons given for these extraordinary cost increases are numerous and include: technological advancements in the medical field, increased demand for medical services and prescription drugs, the aging of the population, cost shifting caused by the uninsured and governmental reimbursement rates, state and federal mandates, and costs associated with medical related lawsuits.As individual consumers, we have very little control over some of the factors contributing to the cost of healthcare. However, all of us have control ...(related: Insurance)
Auto Insurance Rates
Auto insurance rates will vary depending on the insurance agency, your driving record, and the type of insurance you are looking to purchase. I you are looking for affordable car insurance or truck insurance then read on.There are ways to reduce your premiums without giving up coverage. One of the easiest things to do is get auto insurance rate quotes online. This will allow you to comparative shop stress free.Raising your deductibles is the easiest way to reduce your rates. The higher the deductible, the lower the premium will be. The deductible is the portion you will have to pay in the event of accident, before your insurance coverage steps in. It's important not to carry a deductible that's more than what you ar...(related: Insurance)
Health Insurance Plans And Their Differences
Health insurance plans have changed dramatically over the past ten years, and American's currently have several different options to choose from- including HMO's, PPO's, fee-for-service plans, MSA's and major medical. There are two main categories of health insurance plans that each of these policies is classified as; managed care plans and indemnity care plans. The differences between each of these plans mean the differences in how you will receive health care when you need i...(related: Insurance)
Risk Retention Groups Rrg
In response to a hard insurance market in the mid 1908's, Congress passed the Liability Risk Retention Act of 1986. The legislation was intended to simplify the regulatory process for affinity groups such as doctors, real estate developers etc, who wanted to find an alternative to the and unavailability high cost of certain types of insurance coverage. The Act created two new legal statuses: Risk Purchasing Groups and Risk Retention Groups.Risk Purchasing Groups are simply groups (individuals or companies) that want to join together to buy insurance at group rates. The Act prohibits states from placing certain restriction on these groups.Risk Retention Groups (RRG) are insurance companies formed by an affinity group that enjoy ...(related: Insurance)
Cheap Car Insurance ? 7 Tips To Reduce Your Car Insurance Costs
With the cost of car insurance becoming more and more of an issue for the average American family, there are increasing numbers of people looking for cheap car insurance. But although it...(related: Insurance)
Your Cars After-impact Diminished Value
The(ACV)Actual Cash Value Policy DOES NOT insure the property itself but the VALUE of the property.Okay let's say the insurance company chooses to "Repair" their insureds damaged property (as is their option within their contract of insurance). HOWEVER, such an election DOES NOT relieve them of their contractual duty to restore the Pre-Loss VALUE of the motor vehicle...(related: Insurance)
What Should I Do About Billing Problems When Using Hsa Money?
If you run into a billing problem or misunderstanding with a hospital or doctor's office for which you're planning to use money from your Health Savings Account (HSA), you could be in trouble.This article will help you understand how hospital and doctor visits are different when paying with a Health Savings Account. Not better or worse, just different.If you have an HSA, you must have health insurance. It's a requirement. However, if you are using money from your HSA, it means that you haven't hit the deductible of your policy yet.In this particular situation, life is a bit different when it comes to resolving billing disputes with hospitals.Insurance companies have a comprehensive system for d...(related: Insurance)
Used Car Insurance
Every state requires that drivers carry liability insurance. The liability coverage section of an auto insurance policy provides financial protection from liability claims against you when you (or certain other people) cause an accident that results in bodily injuries to other people and/or damage to their property. Every state has mandatory minimum levels of coverage in this area. The rationale behind such laws is that at-fault drivers should be able to compensate victims who suffer accident-related losses. But the required minimums in most states don't even come close to covering the costs of a serio...(related: Insurance)