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| Insurance Rate after One Accident |  It's no accident that drivers frequently save money on their auto insurance bills if they haven’t been in a fender-bender or any other roadway accident. On the other hand, if you have experienced at least one vehicular accident, chances are you’re going to pay more for car insurance when your policy comes up for renewal. There are several reasons of “ranging” this increase.
The amount is "going to range from state to state and from one insure provider to another," says Gorman, vice president of the Insurance Information Institute, which is based in New York. "But a lot depends on the nature and severity of your vehicular accident and who's found to be at fault. If you were drunk while driving, you are going to have a great problem with the insurance company and the law. In this case, you're likely to have your policy non-renewed. Nevertheless, you can still receive insurance, but it's going to cost you a lot more."
For instance, State Farm Insurance Co. usually increase your premium if an insured is found to be "at-fault" for a vehicular accident - meaning any accident in which the company pays more than $750 in property damage liability and collision claim payments, according to State Farm spokesman Bill Sirola. State Farm policyholders should expect to see the increase at renewal time on their liability, collision, and personal injury protection or medical payments coverages, Sirola asserts.
"If you've had a good record, and you've been with a particular company for more than five years, companies such as Allstate won't inevitably increase your rates if you're at-fault in a relatively small vehicular accident," confirms Daniel Kummer, director of auto insurance for the Property Casualty Insurers Association of America, in Des Plaines, Ill.
Different factors can influence your rate rise. Among them state law and your insurance company rating plan," says Dave Snyder, American Insurance Association vice president and assistant general counsel.
Snyder declares that "a small accident may be forgiven under state law or by an insurance company. On the other hand, there could be severe insurance and legal consequences if there is a large accident with dangerous bodily injury and the at-fault driver is driving under the influence of alcohol. There could be a huge increase in insurance rates or even a cancellation of coverage, subject to state law. But beyond that, there could be large fines and even jail time involved."
Some companies have a forgive-the-first-accident policy, but qualifications range from company to company. When buying auto insurance, make sure to ask if that particular insurer has a forgive-the-first-accident program and if so, how you might qualify.
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