Car Insurance Rates after a Car Accident

One of the most dreadful things that can happen to a car owner is a car accident. It is common for the owner to assume that the insurance service provider would cover their losses. Although it is true to a certain extent there are clauses attached to it.

It is important that you read the terms and conditions of the car insurance before you sign up for one. However, in most cases the owners are not used to reading them which may at times come back to bite them in a bad way.

We see a few things that you might have to be aware of when it comes to insuring your car. This can help you make a wise choice while choosing an insurance provider and a plan that might suit you and your car best.

Difference with the Insurer Providers

One of the primary things that you understand as a car owner is the rules and regulations is different from various car insurance companies. Therefore, when you decide to sign up with any insurers, it is important to know what they offer and what you agree upon and not be in a dire situation when the accident happen.

When Insurance Rates Increase?

Although there might be a constant increase in the car insurance rates there might be a significant increase if you are involved in a car accident. The rates however depend on the fact that on who was at fault and the reason for the accident.

In accordance to these the rates are supposed to increase and may differ from one provider to another. The increase is significantly lower in terms of percentage if you are not at fault. However, if you are at fault the percentage of increase would be higher.

Some providers will not charge or do a loading to your premium if the mistake is not on your side. In cases where you as an owner or driver is at fault the increase or loading will varies and the worse scenario is when the car insurance companies will reject your renewal and you need to seek other alternative and the premium will be very high since they know that your previous insurer rejected you.


Accident forgiveness is something you might have if you have a clean driving record and only 1 accident over the last few years with the car insurer. Therefore, it is good at times when you stay with the same insurer and they will also be chances of you obtaining a discount that is larger after 5 years or more of accident-free driving with them.

There are other exceptions that come in handy when it involves accidents and car insurance. The driving record that you have and the way you have handled yourself on the road are some of the other factors that can affect how much you pay for your insurance.

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