When buying auto insurance, it’s essential to understand certain policy aspects to avoid being blindsided by the perks. Moreover, it’s also essential to realize that insurance policies provide a financial cushion for accidents, not habitual behaviors.

Therefore, numerous policy owners or prospective buyers might need to learn that insurance rates can go up after an accident. That’s especially true if the accident is caused by the customers, intentionally or unintentionally.

This blog will discuss why insurance increases after an accident and how much.

 

What Do Insurance Rates Go Up Mean?

 

To understand why the insurance rate increases, let’s first discuss what it means.

 

The insurance rate is the sum you pay per unit to gain a specific amount of coverage. When you multiply said rate by the units you have insured, the resulting amount is your premium which is a yearly payment.

 

Why Do Insurance Rates Go Up?

 

In auto insurance, the insurance rates typically go up after the insurer has an at-fault accident. Insurance companies increase the insurance rate because they assess the customer as high-risk. When they realize this customer will likely reappear with another at-fault accident, the insurance companies ask for more rates for a couple of years to afford the damages.

 

How Much Does Insurance Rate Go Up?

 

Although it is observed that car insurance rates tend to increase 50% or more after an accident, there isn’t a set value to determine how much insurance rates go up.

 

Several factors play a role in determining the results. The most crucial factor leading to the situation is whether you are in an at-fault driving accident.

 

Your driving and claims history, your auto insurance company, and the state you reside in are some other factors that will affect your insurance rate increase. Furthermore, insurance companies in some states also consider the driver’s age to calculate the increased rate.

 

Therefore, if you have been driving irresponsibly and have claimed your insurance several times, the insurance rate increase won’t look good. However, it’s crucial to understand that everything works out in your favor despite the increased rates. The insurance companies are ensuring they have the sums to pay on your behalf that you will require time and again if you’re a faulty driver.

 

Do Insurance Rates Go Down?

 

While discussing insurance rates going up, it’s also essential to look at the opposite. In many states, insurance rates tend to decrease when the driver turns 25. However, your driving history before this age does impact the decision.

 

If you have been in an at-fault accident and your insurance rates have gone up, they can undoubtedly decrease after some time if your driving record proves you have been responsible. If you face any other charges when you already have increased insurance rates, you might not be eligible for a rate decrease.

 

Contact Pronto Insurance Today!

 

Choosing a reliable auto insurance company matters to ensure your money is used on you after incidents. You also require a reputable insurance firm to guide you through the process and be transparent.

 

Pronto Insurance is the one for you if you’re looking for such an auto insurance company in San Angelo, Texas. The expert team is well-versed in helping clients with auto insurance to protect them financially in case of accidents.

 

Contact Pronto Insurance today for a consultation session or more information.