Car Accidents and Affect They Have On Auto Insurance
Each day all across the country is likely that hundreds of automobile accidents occur. Automobile accidents can be anything from a simple fender bender to a multi-car accident that involves serious injuries. Automobile accidents, regardless of the type of accident, will have a significant impact on the insurance rates that a car owner receives.
A large number of car insurance companies assume that car owners who have previously been involved in an accident are likely to have another one later on in life. Each and every time that an automobile accident occurs a car insurance company suffers a small financial loss. Over a period of time and a large number of drivers with accidents is it possible for that small financial loss to turn into a big one. This is why many auto insurance companies take a person's driving record, including the number of automobile accidents they have been in, into consideration.
Over half of the states in the United States have developed an easy way to classify automobile accidents. Car accidents are often classified as being at-fault or no-fault accidents. When a car owner is classified as being at-fault during a car accident it is likely that their car insurance rate will increase more than a driver who may have classified as not being at fault. Not all insurance companies will take at-fault or no-fault into consideration when deciding on a car insurance policy price, but many will. It is possible that a not at fault driver will still see an increase in their policy rates, but is likely to not be as much of an increase. States that do not have a no-fault or at-fault classification are likely to increase the rates of all car accident drivers the same way.
The more accidents that a driver has on their driving record the more likely they are to experience high insurance rates. Once an accident occurs there is nothing that a driver can do to go back and change time. The only things that can be done are move ahead in life and pay any additional fees or rates that may be imposed by an auto insurance company.
Since car accidents are one of the most common reasons for high car insurance rates drivers are encouraged to watch their driving, increase their focus while driving, and try to avoid any car accidents. Many car insurance companies offer insurance rate discounts to car owners who have completed an approved driving course. This course will not only help to save money on car insurance, but it may also offer guidance to drivers who continuously put themselves at risk for having an automobile accident.
Having a car accident on your driving record is not the end of the world. It may seem like it is for the time being, but do not worry because in as little as two years that accident may be erased from your driving record. It is important to always keep car accidents and car insurance in the back of your mind. Doing so may prevent you from pulling out in front of a car that only appears to be slow moving.