Premiums increase on a prism of several factors like the severity of the accident, what degree the accident was your fault unless the accident is placed in a no-fault state, the value of the insurance claim filed by either party, the type of violation, whether you received a ticket, and whether the violation or accident appears on your MVR or CLUE report visible to auto insurance companies. Average rate increases with an auto accident were about $300. MVR stands for motor vehicle report, while CLUE stands for comprehensive loss underwriting exchange. You can even see a nice chart that shows how your premiums rise in correspondence with the number of accidents you’ve been in.
Some auto insurance companies offer an accident forgiveness policy. If your auto insurance company offers accident forgiveness, then you might qualify if you were found to be at fault in a minor accident. However, an industry insider says that it’s a hidden secret in their business that auto insurance rates go up after accidents. Some companies offer their customers a one-time get-out-of-jail-free card that enables them to partake of accident forgiveness, but this is not widespread across the industry. The first step you can do to get cheaper auto insurance after you’ve been in an accident is to take a preventive measure and start out with a company that uses accident forgiveness.
You can take other steps to decrease your premiums after an accident like having a good credit score, getting a car model that is more impervious to accidents, moving to a nicer area, using security devices on your car, having a car that is not frequently stolen, parking in a parking garage, and switching insurers, or threatening to do so when the premiums are raised too much. Sometimes, insurance agents are empowered to offer you a better deal than the company will legally tell you that they can offer. Therefore, by the threat of your removal, you might be able to lock in a better deal. All of these other side factors merely bring down your premium in other ways and compensate for the raise in premium that is a result of your car accident.
Getting cheap auto insurance is a question of meeting all the insurer’s risk-mitigating factors to put you in a certain premium price range. You may not have been meeting these risk-mitigating factors before your accident, but it is OK to start doing them post-accident so that you can reap the benefits of an equivalent premium to what you had before your accident. Simply ask the insurance company what they reduce rates for, and try to meet the criteria as cheaply and quickly as possible. This will ensure that you have lower premiums year to year as rates continually decrease as you cease to get in more accidents. However, keep up the additional factors, and don’t let those dissipate. They can reduce your car insurance premiums no matter what.