How Do Accidents Affect Motor Insurance?

Getting into a car accident is never a good thing, but if you were found to be at fault, you could be paying for years to come. Motor vehicle insurance rates often rise drastically after being involved in an at fault accident.

At Fault Accident: If the police report determined you were more than 50 percent responsible for the accident, you will see an increase in your insurance premiums. With most insurance companies, you will also lose your good driver discount for a set amount of time if you were considered at fault. If you were hit by another driver and it was determined you were not at fault, your premiums will remain the same and your good driver discount will continue.

Injuries and Damage Received: If the occupants of a vehicle you hit received any injuries, your insurance rates will increase. The amount of damage caused to another vehicle may also be considered when an insurance company is contemplating raising rates. If the damages you caused were less than a set amount, you may not see an increase. This could be the case in a minor fender bender or parking lot accident. However, if the damages the other vehicle sustained were large, you will see an increase.

DUI: If you were driving under the influence and were responsible for an accident, you will see a large increase in your premiums. Some insurance companies may drop your policy altogether, because it is too risky to continue providing insurance. If this occurs, you will need to seek out an insurance agency that insures drivers who have a DUI on their record.

Driving Record: Insurance companies keep track of the number of motor vehicle accidents you have been involved in over the past three years. At fault accidents are chargeable for three years beginning on the date the accident occurred. Once this time limit is up, your rate may decrease or remain the same.