How much can one car accident raise your insurance rate?
The average American will file a car insurance claim 3-4 times during their life (about once every 18 years on average.
Everyone knows that when you are involved in a car accident, your insurance rate increases.
What many drivers don’t know (at least until they’re involved in an accident) is just how much their rate can increase after filing just one claim.
According to a recent report by insurancequotes.com, insured drivers who file a $2,000 dollar claim can expect to see a 41% increase on average for their insurance rate.
For someone paying $1,300 annually (the national average for car insurance) that amounts to a $533 increase.
Of course, these numbers are just national averages.
They can vary based on a number of factors. Here are some facts about car insurance rates after an accident.
Each car insurance company looks at different factors when setting insurance rates.
So while the national average increase after a filing is 41%, that doesn’t mean that every car insurance company will increase the rate by that amount.
There are many factors that insurance companies look at and they weigh those factors differently.
Some of those factors include who was at fault in the accident, your driving history, the seriousness of the accident, your credit score, age, and occupation. Where you live can also affect how much your insurance rate increases after an accident.
Some states, like Massachusetts are especially hard on drivers who are involved in an accident while other states, like Maryland are more forgiving.
The type of claim matters as well.
For instance, a $2,000 bodily injury claim can raise your insurance rate by 86% in California but only 27% in Oklahoma.
Getting the best car insurance rates after filing a claim
It’s understandable that you might be discouraged about higher rates after an accident but you should keep in mind a couple of things.
First of all, the hike in your insurance rate won’t last forever.
Typically your insurance rate returns to normal levels after 3 years or so.
Second of all, some states restrict when an insurance company is allowed to raise your insurance rate.
So if the accident wasn’t your fault or the claim was less than a certain amount, you may be able to successfully appeal the rate increase.
Finally, you can shop around for a new insurance company that offers accident forgiveness or calculates the rate increase more favorably than your current car insurance company.
For affordable car insurance quotes call (855) 724-7965.
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