Insurance Premiums: Does a Crash mean an Increase?

So you were in a car accident? If so, one of the first things on your mind is probably how this will affect your auto insurance situation. After all, you have more than likely heard in the past that any type of accident will cause your premium to increase. But is this necessarily the case in every type of accident?

First and foremost, after an accident your auto insurance company will look at the details of the incident. If the accident was your fault, there is a very good chance that your premium is going to increase. Your auto insurance company will see this as you being a careless driver, and of course, they will reflect this in the amount of money that they charge you.

But on the other side of things, if the accident was not your fault, you may get left off the hook. When it comes down to it, there may have been nothing you could do to avoid the accident. In turn, this means that there is no reason that you should be penalized.

Of course, your auto insurance company will also look at your past driving history as well. If you caused an accident, but have been a perfect driver for 10 or 15 years, there is a good chance that they will cut you some slack. This is why it is so important for you to stay safe while on the road. Not only is this a good thing for you and other drivers, but it can help financially as well.

All in all, your auto insurance premium will not always go up if you are in an accident. Many factors are looked at before a final verdict is reached.