What factors do insurance companies look at when raising premiums after accidents?
I got into an at-fault accident a few weeks ago and I'm dreading the higher insurance premium that's on the horizon. What factors will insurance companies consider when raising my rates?
There are a lot of factors that insurance companies look at when adjusting rates due to an accident. With most insurance companies, if your claim exceeds a fixed dollar limit, this will result in a greater increase in your insurance rates than if it was under the threshold. However, raising premiums isn’t just based on the amount paid out but also what coverage was used. For example, a claim paid under comprehensive or uninsured motorist insurance may not have as much impact as a claim paid under bodily injury or collision coverage.
In most cases, one of the largest impacts you’ll see is when you go from having no accidents on your driving record to having just one. Most insurance companies offer an accident-free discount; if you have one accident, not only will your premium go up but you’ll lose the discount. The discount will usually be applied again after five years without an accident.
Did this answer help you?
Ask us a question by email and we will respond within a few days.
Have a different question?
You can meet us at our office and discuss the details of your question.
Read advice from car experts at Jerry
Browse by topics
What others are asking
Are there lenders who offer car loans to non-permanent residents?
I'm a non-permanent resident who's in the U.S. for work purposes. I'd like to buy a car so I can get around more easily. Would I qualify for a loan?
Mar 12, 2021
Does renters insurance cover damage from an accidental gunshot?
My brother accidentally discharged his gun in his apartment and now there's a bullet hole in his wall. Thankfully, no one was hurt. Will his renters insurance cover the damage to the wall?
Apr 13, 2021
Where can I buy a non owners car insurance policy in Utah?
I live in Utah and the public transportation in my little town is not the best. I usually ride my bike around, but I am thinking about renting a car a few times a month. Where can I get an NNO policy?
Apr 29, 2021