How to keep your car insurance-rate low after an accident
Every vehicle owner must insure his civil liability. In this regard, drivers strive to get an insurance policy as profitable as possible. The price of insurance is defined by the insurance provider influenced by many factors, including impeccability and trouble-free driving, the number of accidents committed by the buyer of insurance. To encourage drivers to drive more carefully, a coefficient is applied that increases the cost of the insurance premium, which changes annually. In the event of moving violations, this discount will be reduced. Many drivers know that being in an accident increases the cost of insurance. And the question naturally arises: how does an accident affect the cost of the existing policy? The civil liability insurance system takes into account the interests of two parties – car owners and insurance companies. The latter, to reduce the financial risks associated with the payment of indemnities, determine the cost of insurance policies individually, assessing the reliability of the client in terms of his “propensity” to accidents. The result of this assessment is the application of special coefficients to the base rate, which increase or, conversely, reduce the cost of the insurance policy.
However, it is worth noting that the cost of your deductible will not always rise after an accident on the road. Choosing the right insurance agent or applying smart tactics, then you have the opportunity to reduce the cost of insuring your vehicle after a traffic accident. It is also important to choose a reliable insurance lawyer.
If you are interested in this topic, then this situation is close to you and the problem from personal experience or the experience of your friends. First of all, our Schlacter Law team sincerely feeds on the hope that in the accident that happened to you or your friends, not a single person was seriously injured. Also, we hope that you will not need the help of an insurance claim lawyer.
It is also possible that if, nevertheless, severe damage was not received as a result of the accident, then you still have to experience financial discomfort when your vehicle insurance is renewal later. Also, you will exactly need to ask for an insurance claim attorney’s help. This decision is based on the fact that insurance companies in many cases increasing deductible premiums for motorists who have recently become a participant in a road accident in a car. Insurance payment (premium) presents the insurance course that the policyholder is obliged to pay to the insurer by the contract.
In what cases will your payment not increase after an accident?
Not all accidents lead to a recalculation of the cost of insurance policies through the use of increasing coefficients. If a client gets into an accident but is found innocent and injured by the actions of the other party, then you may not increase your age credit history. However, if it turns out that you are still the culprit, and also if in the opinion of the company with which you entered into an insurance contract, you have become a participant in a large number of accidents, even if it is not your fault for them, then the chances are high that the amount of the insurance premium in times will increase. The exact cost of the claim insurance depends on many criteria, for example, on what kind of severe accident you have with a motor vehicle. By and large, the most correct, natural way to save money on a policy is to buy insurance-friendly car, be extremely attentive on the road and respect the rights of other road users. We wish in the future to try not to violate traffic rules and not to participate in an accident.
Why do you need motor vehicle insurance at all?
Everything good that was once discovered or invented by man sooner or later gained worldwide recognition and often becomes mandatory. This also happened with insurance, which is popularly called auto-civil insurance. For the first time, the law on compulsory motor third-party liability insurance was adopted in the United States in 1925. This step has brought the national insurance market to a new level because compulsory assistance to victims of road accidents has a clear social orientation characteristic of the civilized world. The easiest way to explain the importance of compulsory auto insurance is with an example. The classic insured event is a car accident with 2 participants: one is the culprit, the second is the victim. Let the culprit draw up a contract with insurance company A, and the victim – with insurance service B. After the guilt of one of the participants is established, the victim can contact insurance company A to receive compensation. Insurance company B, in which the victim is insured, does not participate in this story (a classic example). What conclusions can be drawn from this? The benefit of comprehensive car insurance for the victim is guaranteed compensation for losses. The benefit of insurance for the culprit is the release from him of the obligation to coverage for the damage caused.