Greensboro Auto Insurance: Rising Rates After an Accident

When it comes to auto insurance, there are three factors that are important in determining your rates:

• Repair costs – if your vehicle is an expensive model to repair, it will be more expensive to insure. 
• Your address – where you live and where you park your car can have a significant effect on your car insurance rates.
• Your driving record – the best way to keep your auto insurance costs in check is to maintain a clean driving record, with no moving violations, to not be involved in any car accidents and to make no vehicle insurance claims.

The Effects of an Accident

Most drivers realize that if they have an accident and make an insurance claim, their premium rates will increase. This is true for most insurance carriers, and the typical timetable for these increased rates is generally three years. During that time period your premium rates should slowly come back down to where they were before your accident, assuming there are no further accidents or claims against your coverage, and your driving record should also be expunged by the end of three years.

What's it Going to Cost?

A recent study reported on the Moneywatch website found that a driver involved in an accident and making one single claim of approximately $2,000 could expect his or her insurance rates to increase by a whopping 41%! Several factors will affect the actual amount of the rate increase, including your previous driving record, who is determined to be at fault for the accident and the severity of the damage and/or injuries. According to the study, those unfortunate enough to make two accident claims may see a price hike for their insurance coverage of as much as 93%.
If the accident is determined to not be your fault, there's a good chance you won't experience a price hike in your insurance premiums. The insurance coverage of the person found at fault for the accident in which you're involved should pay for damages, letting your insurance carrier off the hook.

State by State

The amount that your insurance premium will be increased after an accident is dependent on the state where your coverage was put in force. For some states, such as California or Massachusetts, a single insurance claim could translate into a rate increase of as much as 86%. The average increase in NC was found to be 58%.