Accidents bring upon a substantial amount of stress. Unfortunately, the ongoing financial burdens can make it difficult to move forward. The goal of this blog is to help prepare you for insurance costs after an accident.
Many, many factors come into insurance costs after an accident. Between the context and physical situation of the actual accident, your state, your policy, your accident record, there truly is no exact formula for predicting these costs. However, doing your research is a great way to construct some general idea of what you can expect. So, great job on getting a head start!
A 2017 study by Insurance Quotes and Quadrant Information Services determined that the average annual premium increase when having filed one $2,000 plus claim was 44.1 percent. This percentage has slowly increased over the past five years. For reference, the claims included in the study included bodily injury, property damage, and comprehensive coverage. The average annual premium increase for filing two $2,000 plus claims within twelve months was 99.4 percent.
Be aware that you should expect your rates to go up even if the accident is not your fault. Also, if the accident is an at-fault, there are a few cases where you could potentially qualify for accident forgiveness. Having accident forgiveness as part of your policy means that you could be protected from rate increases when you’re at fault for an accident. This sort of protection typically occurs if it is your first accident where you’re liable. Ultimately, the decision lies in the hands of your insurance carrier.
Some carriers may have accident forgiveness built into their policies, while others may require you purchase it separately. Please keep in mind that each carrier has its unique specifications about how to qualify, including state restrictions, your driving record, or the number of years you’ve been with the company.
Curious about your policy’s offerings? Wondering how much money you could be saving? Comparing rates and carriers is one of the best things you can do for your wallet!
Allow Avery Hall experts to help you do your accident forgiveness and rate research for you. Click here to find your local office today.