If I Report An Accident, How Much Will My Car Insurance Rate Go Up?

By Mike Anderson Posted in Car Insurance News

How Insurance Rates Are Determined

One of the biggest factors in determining your insurance rates is your driving record. This includes the number and severity of your accidents. Whether the accident affects your rates depends on how many previous accidents are on your record and how many violations are on your record. If you have a history of accidents filed, even if you were not at fault, then any subsequent accidents will increase your rates.

Accident Forgiveness

In order to offer competitive options for “good” drivers insurance companies came up with accident forgiveness. Some companies offer accident forgiveness for which they will not raise your rates for one accident. This perk is usually only offered on the more expensive policies and involve some restrictions. Most insurance companies only “forgive” an accident if you have not had one in the preceding five years and if it was minor and did not involve any serious violations like a DUI or DWI. Once you have used your freebie accident, you have to wait another five years, or more, to benefit from accident forgiveness again. Even though the insurance company won’t raise your rates under your current policy, when you go to renew or change your policy then all bets are off and the accident will be factored into your rate.

To Report Or Not To Report

Reporting an accident can be to your benefit or it could be detrimental. First, look at the circumstances of the accident. Did you tap someone’s bumper while in traffic? Was there only minor damage? If this is the case then you could probably skate by without reporting the accident. If you are in a major accident where the other driver’s or your car has significant damage, then you should report the accident. Unless you have a large amount of cash around to pay for a new car then reporting the accident is best. Even in minor accidents the other driver could try to scam you, so keep an open mind about reporting your accident.

Related posts:

  1. What Does Accident Forgiveness Mean For Car Insurance?
  2. Is It Cheaper To Pay For Accident Forgiveness Insurance Or Not?
  3. How can I Know My Driving History For Free For Low Cost Car Insurance?
  4. Does A Clue Report Affect A Cheap Motor Car Insurance Quote?
  5. Which Insurance Companies Do Not Look At Your Driving Record?

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