How will a collision affect my insurance policy premiums?


The fear that auto insurance rates will automatically increase is the main reason why most drivers are hesitant to file an auto claim after a minor accident.

In reality, this is not always what happens. Your car insurance company determines if car insurance rates will go up as well as by how much.  This all depends on the circumstances of the particular accident, as well as whether accident forgiveness is on your policy.  Nobody really can tell exactly how an accident will affect their auto policy rates, the information below may allow you to get a bit of insight and predict the outcome.

Rates Based on Collision Specifics:

When determining how a collision can and will affect your auto policy rates, these are just a few of the factors they are likely to consider:

  • The severity of the incident. Damage from a car accident can range from a simple scratch or dent in paint to the car being totaled.
  • Larger quantities of destruction are likely to lead to a greater rate hike, or surcharge, because the insurance company must come up with a larger payout.
  • The at-fault driver. In many cases, your car insurance rates will go up if the accident is your fault, but remain the same as long as you can prove that the accident was the other driver’s fault.

On the other hand, certain exceptions apply, including but not limited to the following:

  • Quite a few companies will yet still raise your premium BC you are statistically more likely to get into yet another automobile accident, showing more risk for your company.
  • If you live in a no-fault state, both parties insurance agencies are required to pay for some of the costs, and your premiums will probably go up regardless of who caused the auto collision.
  • Your worthiness to the company. Safe motorists are less costly for auto insurance companies to cover.
  • If you have a long reputation of safe driving and you’ve been using the company for any long period of time, you are less likely to see dramatic spikes in your monthly fee than someone who has a very poor record of driving with many accidents..

Some businesses also provide accident forgiveness for safe drivers with a clean history. This simply means that your first accident won’t result in rate increases.

Accident Forgiveness

Many companies provide accident forgiveness to customers with great driving records.  A car accident forgiveness program usually allows great drivers to experience 1 collision without suffering the consequences of an increased premium after the claim, despite fault.  Check with your vehicle insurance carrier to see if they offer this type of program.
The Importance of Filing a Claim
Should you get into an accident, your vehicle is stolen, or another incident happens, don’t automatically steer clear of filing a claim BC you think your car insurance rates will go up.
An increase in your vehicle insurance rates are not necessarily permanent. Some companies raise your rate for the time being, but allow it to drop every year that you do not get yourself into another collision. Within a few years, your insurance costs can go back to their pre-accident rates.
Consider your company’s policies as well as the accident details to decide whether you wish to file a claim. Keep in mind that filing a claim allows you to:
• Tell your side of the collision story.
• Have your insurance company check out the accident.
• Use your coverage to pay for either your car or the other end of the accident’s party’s injuries or damages.

Regardless of you rates, getting into a collision is very serious, especially if your vehicle has been damaged and has become a hazard to drive.  In this case, you will need to call a reputable collision center such as ICC Collision.  We have trained and certified technicians to assist you with the insurance process as well as the process of getting your vehicle fixed.

ICC Collision has 4 convenient locations to serve you.  If you are interested in getting an easy online estimate of damage, feel free to use our online estimate tool.  Once your information is received, we will review it and contact you with a quote.

For more information, Contact ICC Collision Centers by clicking the picture below: