Aside from the fact that traffic accidents can be an unfortunate event, motorists should be aware of what kind of impact that collisions have on their coverage. The resulting effect that an accident can have on an individual’s premiums depends on various factors and details of the incident.
The main detail that insurers take into consideration after an accident is to determine which party was at fault. If a policyholder is found to not be at fault, the chances are very likely that their carrier will not increase their rates; some states have a law in force that do no allow providers to raise premiums of parties who are not at fault in a collision.
However, being found liable can cause a rate to increase. Several companies’ underwriting guidelines will eliminate a good driving discount following an at fault accident. This discount is usually in the area of 20% and many who may wonder how long do accidents affect insurance rates is dependent on the company, but in most cases insurers do not offer the good driver discount to those with any “at-fault” incidents on their driving record within the last three years.
It is also important to know what steps to take following an accident. By visiting http://www.calbar.ca.gov/state/calbar/calbar_extend.jsp?cid=10581&id=2174, the State Bar of California provides very helpful information of the steps and precautions to take regarding what to do if there are injuries sustained and what details that should be given when asked by the other party and authorities and which should not.
Although “fault” is a major factor that can affect car insurance following collisions, there are many other details which insurers evaluate that can also impact the premiums of motorists. For more details and a more extensive list of items that companies consider, visit http://www.onlineautoinsurance.com/learn/how-accidents-affect.htm for further information.
