How to Prevent an Auto Insurance Rate Increase After an Accident
Auto insurance policy holders are often surprised when they see a hike on the prices of their premiums. The truth is, any insurance company has the legal right to increase your premiums (stated in your policy agreement) even without prior notice. However, the reasons may vary from one provider to another. This means that different companies have different rules regarding the increase in premiums after an accident. One of which is having you penalized for an at-fault accident, traffic violation within 2-5 years of being under the policy, no-fault accident but liability damage exceeds more than expected and a whole lot of other reasons.
This is true even if you are under the minimum auto insurance available in your State. Actually, the sudden increase in premiums happens more often to individuals with minimum auto insurance policies. This is commonly done by the insurance company you hold a policy with for your best interest as a client. Of course, it is also done for the best advantage of the insurance company, and that’s one reason why they may choose to increase your premiums.
On the other hand, even though this is expected from insurance companies, you can actually have the advantage of preventing any increase in your premiums as a policyholder. The best option you should consider before being insured is to look for the best insurance policy, which you know you can afford without settling for the minimum. Keep in mind that it is for your own benefit to get a good auto insurance to protect you from cases like increase in premiums and additional penalty charges; which eventually will make you end up paying for more than expected. Don’t get caught between financial insecurities such as this. You can also prevent insurance rate increase by cooperating with your insurance company even with the police to point out who’s behind the accident you are in.
You can do this if you know that your insurance company respects and considers no-fault accident policies to prevent getting an increase in your premium. You can also coordinate with other insurance companies from those who are involved in the accident for “shared responsibility”. This is most especially applicable if you are not the one who caused the accident in the first place. Proving a clean driving record is also another way of preventing an insurance rate increase. A good driving record for the past 2-5 years will actually save you from other penalties and fees associated with the damage and injury liabilities. Lastly, make sure that before you enter into an agreement with any insurance company of your choice, that you’ve discussed this kind of situation with them. You have to be completely knowledgeable about what your stand is when situations arise and if the insurance company values your concerns, come into terms to lessen your increase so you can still afford it.
Furthermore, you need to make it a point to always check with your insurance provider regarding any changes made in your policy. It is not a difficult task to protect your coverage and prevent unwanted financial hassles in the future. Consult with your provider and make them know what your other concerns are. Learn about how the company will handle you as a client when situations like accidents arise.