Did you know that your car insurance premium does not automatically increase every single time that you have an accident? Somewhere along the way, many of us have adopted the notion that any car accident, no matter how minor, will cause our insurance rates to go up. This is simply not true, and while some accidents do cause rate increases, others have no effect on rates whatsoever. It is important that drivers understand this, because some accidents go unreported as a result of this faulty assumption.
Every insurer that offers coverage for automobiles calculates its rates in a slightly different way. When you make a claim, your insurer will consider a few relevant factors in addition to the circumstances surrounding the current accident, in deciding whether to raise your insurance rate. These factors include whether the accident was your fault, the number of claims that you have made in the past, your driving record, and the payout amounts of previous claims that you have filed.
To add to the confusion, some insurers offer “accident forgiveness,” which can reduce the likelihood of an accident affecting your insurance rates. While the exact definition of accident forgiveness varies from insurer to insurer, the general concept is that if the laws of your state permit and you meet certain other criteria, your first at-fault accident will not affect your insurance rates. Of course, as you might imagine, restrictions and exclusions do apply, so be sure that you read and understand your policy.
One major factor that will weigh heavily on whether or not an accident will affect your insurance premium is if you were violating the law at the time of the accident. Speeding, failing to obey red lights and stop signs, and driving under the influence of alcohol are common traffic violations that can lead to car accidents, but they are not the only ones. The accidents that are caused by drivers violating these and other traffic laws often cause large amounts of damage and injury. A driver who is at fault in an accident that occurred while they were violating one or more traffic laws can expect a large increase in their insurance rate if their insurer does not drop them altogether.
Barrett Law PLLC: Superior Representation for Mississippi Car Accident Victims
Drivers need to know that filing an insurance claim after a car accident will not automatically increase their insurance premiums. Please do not let a concern over car insurance rates prevent you from obtaining compensation for the injuries and damages that you have suffered as a result of a car accident. Also, be sure to get checked out by a doctor as soon as you can, so that you can get the care that you need and create a record of your injuries. If you were hurt in a Mississippi accident, the Mississippi Car Accident Attorneys at Barrett Law PLLC can help you. Call our office today, at 1 (800) 707-9577, to schedule a free consultation.