Anyone can panic about increasing insurance policy costs after a car crash, as unplanned accidents can provoke financial havoc. Besides the difficult process of filing claims and the suspenseful wait for the new verdict, which reveals the updated insurance premium, there is a light at the end of the tunnel. There are several steps that can be done that insurance customers can take to overcome the financial burden of car insurance increase after a car accident.
There’s a solution to every problem, and with that being said, individuals can not only discover their own workarounds for reducing car insurance but also can cooperate with their insurer to remedy the issue. Customers can take measures into their own hands, speak with their insurance companies, and think constructively on additional ways to reduce their monthly bill. Here are a few approaches customers can take to prevent a hike in insurance.
Not all accidents will cause your insurance to go up, and only occur if there was a chargeable accident or a chargeable incident. Chargeable accidents include bodily injury, death, or property damage, which can result in a surcharge. Chargeable incidents include tickets and violations, which can last as long as five years on your record. Whether the accident or incident was chargeable or not depends on legal documentation that shows that the damage was reimbursed, the other party provided a letter that they were at fault, a police report, or that the other party’s insurance company admitted they’re at fault. If your car was legally moving, parked in place, or not illegally causing the incident, then you are not chargeable.
Signing up for driving classes is another solution that can reduce insurance costs. Often, insurance companies will offer discounts, from as little as 5% to as much as 20%, off your car insurance when you finish a qualified driver safety course in your state. Not all drivers qualify, so you will have to call your insurer to find out if this is an option for you. Plus, in the long run, this will also work as a preventative measure and will aid you in avoiding future accidents.
Raise your credit score to further diminish your insurance prices. In general, when your credit score goes up, companies that service you are more lenient and favor those with improved credit scores. This isn’t true for all states, as some states are against insurers applying the use of credit stores in judging dependability and loss. In states that do consider them, raising your credit score helps you, and helps your insurer predict insurance losses. This is a win-win.
While comprehensive coverage may have the ability to pay for unplanned disasters, such as trees falling, floods, fires, theft, vandalism, animal crashes, and more, you can still remove it. No state in the U.S. requires comprehensive coverage or collision insurance. However, it is recommended that you keep collision insurance as it covers you when running into a tree or pole, for example. Removing comprehensive insurance will overall lower your insurance policy, and help you save money. There is the risk that you have to pay out-of-pocket for unplanned natural disasters regarding weather and animals, so you must add this to your savings goals.
This might seem obvious, but most people overlook the simple solution of increasing the deductible. This will significantly reduce your cost, as raising the deductible will help reduce the price of comprehensive and collision coverage. If you decide not to take off comprehensive coverage, this is an alternate route to the recovery of affordable costs. Around 15% to 30% can be reduced in coverage, but an even higher deductible can save you 40% or more. The deductible amount will always be inversely proportional to the premium amount. However, always remember that when you decide to raise the deductible, that you have enough money set aside for when you need to file a claim and pay more out of pocket for that amount.
Another approach includes everyone’s favorite thing, discounts! Insurance companies offer a variety of discounts at different times of the year. One discount can include a bulk rate, where insuring several drivers at once can work to reduce costs. Car insurance discounts come in many forms, so be sure to explore each discount, and what is required for them, with your insurer to carefully understand how you might qualify.
While not all insurers provide accident forgiveness, the biggest and most popular insurance companies include this additional coverage which can be added into your auto insurance policy. This means that your price doesn’t go up after your very first accident. However, there may be some requirements before you can qualify for accident forgiveness. Some insurance companies require several years of no accidents, others require an additional payment to add it to the policy.
Don’t feel stuck! There are many fish in the sea, and that is true for car insurance companies that are often neck-to-neck competing with each other for customers. Shop around, and browse for a more affordable insurance company with a lower premium. However, pay attention to reviews. Don’t go for the lowest offer, make sure that when you submit a claim, it is actually attended to. You can often find a company that will make you a better offer just to get you to switch to a policy with them. Always go for affordability and reputation when shopping for lower premiums. They might also offer discounts that your current insurer lacks.
You can join a usage-based car insurance program where the policy price is based upon how safe a driver is, as well as their driving habits. This is done through the collection of usage information and data from a driver’s vehicle. The insurer is the one who collects and analyzes this evidence and uses it to decide the amount of money that is discounted per each driver’s eligibility. With the use of this information, the insurer can accurately discern between a safe, mediocre, and terrible driver. Hopefully, you’re on the safer end!
With these useful tips, you will be able to reduce your car insurance no matter how bad the accident, and hopefully prevent more financial burdens in addition to damages. If you want more useful information on insurance premiums and cost adjustments, you can read more about insurance. This can aid you in deciphering the mechanisms behind insurance premium costs, how to work with your insurance company on your policy, and learn other useful information that can save you time and money later down the road.