April 19, 2010

How An Out Of State Accident Can Affect Auto Insurance Quotes

A carrier will issue an auto insurance quote based on several factors including location, credit and driving history. A person’s driving history is evaluated in a three-year time period. Auto insurance rates by state often vary. Different states allow certain insurance companies to divide territories into tiers based on risk. This is the reason for the variation in auto insurance rates by state. When a person is involved in an accident, a person’s premium will usually increase by 20-40% if the driver is at fault. There are multiple variables that affect the rates of auto insurance premiums where accidents are concerned. There are several ways out-of-state accidents can affect how much an individual pays for insurance.

If one is involved in an auto accident and fails to report the incident to the insurance company, there could be consequences. This is especially the case if the driver happens to be involved in an at-fault accident that occurred outside of the state the driver resides in. Insurance companies can impose a surcharge on the policy holder for neglecting to inform them of the incident and/or violation. Those surcharges could prove to be costly. An accident that occurred out-of-state can also cause a driver to have to carry more insurance. If the insurance that an individual had at the time of the accident was insufficient, that person could be required to carry an SR-22. This means that one could be required to get a specialized auto insurance policy specifically designed for an SR-22. A driver could be required to carry that for years. SR-22 policies are expensive and can affect auto insurance premiums for a period of three years. If a driver is involved in an at-fault accident in another state, that accident will affect that person’s insurance rates.

An auto accident counts against a person’s driving record regardless of where it occurred. If the driver moves to another state and obtains a new driver’s license, the auto accident will appear on a person’s new driving record with the new state. When the driving record is reviewed by the auto insurance companies, the person’s driver history in another state is also taken into consideration. It’s important to remember that states share information regarding violations and accidents. States report auto accidents and moving violations to the driver’s state of residence.

Auto insurance rates by state are determined by location, state laws, driver history, and often credit. Auto insurance quotes are determined for the most part by a person’s driver history. Auto insurance companies want to insure drivers with better driving records. It’s best to take a driver improvement course, if involved in any auto accident.