Most people know that following an auto accident, your insurance rates could increase. There are various factors that determine whether or not they do. If you were recently in an accident, here is what you need to know about increasing rates and how you can lower them.
Why Did Your Rates Increase?
The obvious answer to an increase in auto insurance rates is that the accident led to your insurance provider looking at you as a higher risk to insure. Insurance companies typically have the say in whether or not to raise your rates.
For instance, your insurance provider might decline to raise your rates if you have had a consistently solid record without any accidents. An increase might not occur if both you and the other driver were responsible for the accident.
It is important to note that state laws also have a say in whether or not rates increase. Some states put restrictions on when an insurance company can raise the rates after an accident. The laws vary by state, so it is a good idea to look at your state's insurance laws after an accident.
The rates are not raised indefinitely though. Your insurance company only has a certain number of years it can add the increased rate to your premium. Check with your state laws to determine the time limit.
What Can You Do to Lower Rates?
Fortunately for you, there are steps you can take to lower your rates after having an accident. For instance, you can drop the amount of coverage you have. Instead of opting for comprehensive coverage, you should consider opting for the minimum amount required by your state's laws.
You can add the more extensive coverage when you are in a better financial situation to afford it. If you avoid any major violations in during that time period, you could possibly be offered a lower rate.
You also need to explore the discounts that are available from your insurance company. For instance, enrolling and completing a defensive driving class can help with your rates. If you belong to any clubs or organizations, find out if they have a partnership with an auto insurance provider that would provide you with a membership discount.
If possible, bundle your coverage with other insurance you have. Some insurance companies offer discounts for customer loyalty and by adding your home, boat, or other insurance to your policy, you could qualify. Click here for info about auto insurance.