A car accident can be a really traumatic experience. As if the physical and mental trauma wasn’t enough, people often have to go through a lot of paperwork regarding insurance. Dealing with insurance claims after an accident can be a challenge. Buying an insurance policy after a car insurance accident is an even bigger challenge. The cost of the policy and the procedures can be difficult to understand. Here are a few things that each consumer should remember before buying car insurance after an accident.
The Insurance Premium May Increase
After being in an accident, a person may be considered a risky customer to an insurance company. As a result, the buyer’s car insurance premium may increase twenty to forty percent after the accident. This increase may continue for at least a period of two years after the accident. If the person cannot afford such a high premium, then with a careful search, a lower premium option may be found. Buyers can weigh their options by checking the policies of various companies. With a good understanding of their options, they can choose the policy that suits them and their financial situation.
No Fault Auto Insurance
After being through an accident and seeing the trouble that one has to face with insurance, buyers may decide to opt for a no fault auto insurance policy. With many insurance policies, the insurance premium increases after an accident. It does not matter whether the accident was the person’s fault or not. With no fault auto insurance policies, however, the insurance premium does not increase as much if the person is able to prove that the accident was not his fault. After the accident, the person must provide sufficient evidence. This is a major advantage that can help save money.
Find a Favorable Insurance company
There are several thousands of insurance companies out there that can offer car insurance policies. However, there are a few companies that specialize in car insurance accident policies. The advantage with these specialty companies is that they understand accidents and offer a wider variety of car insurance plans than other insurance companies. Companies that specialize in car insurance also offer low rates that are very competitive in comparison to other companies. Consumers should feel free to compare the rates of specialty insurance companies with the other companies. When buyers make a solid comparison of various insurance companies, they can select the company that is right for them.
Buying car insurance after an accident can be a tedious task that requires a lot of effort. However, by remembering these three tips, consumers can find the best policy for their situation.
Most people never consider looking for a new cheap auto insurance policy because they’ve been paying premiums for some time and it becomes routine to write the check to continue coverage. Take notice about the price trend of your car insurance policy. Companies are willing to offer new customer discounts as part of the marketing effort aimed at getting you on board. From there, annual or semi-annual premiums are prone to gradually increase until at some point the original discounts have been more than paid for by you. If you can’t convince your current insurer to cut back on those added expenses, then take the time to look for a new company.
If you, or another person on your car insurance policy, get classified by your insurance company as a “high-risk” driver, your premiums are going to skyrocket. You have no choice but to accept the higher cost, and don’t expect the insurance company to send you a notice regarding a rate reduction. But after two years of safe driving, and paying the huge premiums, begin a search for new car insurance that is cheaper. A new company may not bring costs down to a level you feel is most appropriate, but it will start you out at appreciably lower premiums for the same coverage. Keep your driving record clean to make the case for even lower future insurance premiums.
Changing your address can have an impact on your car insurance policy. Different areas of the country, states and cities are not always rated the same by insurance companies. Expect your insurer to adjust your policy’s cost after the move is finished. Take this opportunity to examine what other insurance companies offer in your new neighborhood. For instance, moving to a rural area from a city could mean hundreds of dollars in savings each year.
Keeping your driving record clear of black marks is actually worth something. Insurance companies normally look back five years to determine what kind of driver you are. If those five years are spotless, demand that any insurance company you deal with recognize they have an obligation to offer their best rates. Anything less should put you on the hunt for a new car insurance policy. Look online, where dozens of highly reputable insurance companies are eager for your business.
A change in your financial situation could signal the opportunity to go for better car insurance that probably carries higher costs. You may have been driving a car that didn’t need expensive coverage. The new, more expensive car needs more costly insurance coverage. This could be a great time to determine if your car insurance policy sufficiently covers everything.
Some drivers seem to get the best car insurance deals from their insurance providers on an arbitrary basis, but insurance companies are very careful to only offer these policies to low-risk drivers. If you’re trying to lock in a great deal on car insurance quotes, it’s helpful to know how insurance companies decide on the costs of their policies and how you can qualify for great premiums.
Insurance companies use actuarial tables and a number of complex algorithms to decide rates and discounts for their drivers. The best car insurance deals tend to go to drivers who can demonstrate a relatively low risk to insurance companies. A common example would be a driver who has a long history of steady insurance coverage with few or no claims. This type of driver would fall into a preferred category to an insurance company, and in order to keep that driver’s business, the insurance provider could offer a very low rate, since there’s a very low risk that the insurance policy holder would ever report a claim. Drivers who have no speeding tickets will also receive preferential rates, as will drivers in certain age groups that are relatively safe investments according to insurance company actuarial tables.
However, a driver’s track record is by no means the only factor in whether or not he or she receives a great deal. Drivers might receive lower than average car insurance quotes simply because they live in a safe area that reports fewer claims than other areas. Low-crime areas, for example, have low car insurance quotes for policies with comprehensive coverage, since the chances of auto theft (a fairly major car insurance claim) are low. Drivers who join several insurance policies together can also get low rates, as can drivers who take special precautions to reduce the chances of an insurance risk by installing anti-theft alarms or extra safety features.
If you’re looking for low car insurance quotes, one of the best ways to limit your costs is to look for quotes online from as many insurance providers as you can find. Good car insurance deals are often available through websites that automatically gather quotes for drivers, as insurance providers compete with one another by offering lower and lower prices on their car insurance policies. Use these websites to evaluate your insurance options. Read through each policy carefully and know about the special car insurance discounts offered by each insurer. Every driver can lock in a great car insurance deal with some perseverance, and by looking at quotes and knowing your risks, getting a low quote can be an easy process.