Accidents are horrific events no matter how small they are. The feelings during the accident and after it are something that no one wants to feel ever again. The problem is that not only do you have to deal with the injury, the payments, the loss of time in the office and other issues, you now also have to deal with the higher insurance rates. But if you know the reasons behind these hikes, you can be better prepared to deal with these rising costs and protecting yourself from them.
One of the major reasons behind the increase in insurance rates is the driver’s history. It plays a major role in deciding the hikes in your insurance premium.
Another reason for this spike in the costs is the new technology that is being added to cars. The damage to this technology like a fancy new GPS system or a blind-spot monitoring system puts a lot of financial stress on the insurance providers.
The rates of insurance premium increase differ from person to person and from state to state. But studies have shown that one of the things that raises premium more than anything else is the amount of the claim. The more you claim, the more you will have to pay later.
A study done by insurancequotes.com shared that people who made a claim of $2000 or more saw an increase in their premium of more than 40%. If you get into two accidents in a single year, your premium can nearly double.
Different insurance policies and states also have a part to play in the amount of increase. But the same study found out that three types of claims caused the highest amount of premium increase:
Even if the accident was not your fault, you can expect a rise in your insurance costs. There are some states like California and Oklahoma that forbid the insurance companies from raising the premium of drivers who are found to be not at fault. But that is just in a few states and not across the country.
Some experts also point out that the average car accident are now more serious and gruesome than previous years. Every year more drivers come out on the road. This is one of the reasons why insurance companies are now adopting harsher policies. Since every insurance company does its own research, they know that accidents are becoming more and more significant and they need more money to handle the costs.
Some people might think that as the claims can cost a lot, they might hush up the claim and pay the costs themselves to save money in the long run. But that is not the only factor in play when you get into an accident. What most experts suggest and what is recommended is that you should definitely file a claim if you get into a car accident, whether it is a small bumper scratch or something more.
There are a lot of things that you don’t consider at the scene of the accident. There are some injuries that take days, even weeks to show. Similarly, something could have been knocked lose in the engine or anywhere else in the car and you don’t know about it right away. It’s also possible that the other person involved in the interaction sues you.
So make sure that you claim any accident that occurs. And don’t worry about the insurance cost. It won’t remain costly forever. If there is no accident for three years, or any time period that the insurance company has set, your insurance rates will automatically go down. A higher insurance cost might seem like a burden, but it is just for a short while.