Unfortunately, there are approximately 6 million car accidents per year in the United States. Although these don’t always result in serious injury, they can often cause your insurance rates to increase.
This is especially true if you were found to be at fault.
Luckily, there are steps you can take to help lower your insurance post-accident. Let’s explore what you should keep in mind.
Ask Your Provider About Accident Forgiveness
This is one of the most straightforward ways to lower your insurance rates. Although it won’t always apply to your scenario, it can make your life much easier.
In most cases, drivers who have been in multiple accidents won’t be able to take advantage of this benefit. If this is your first accident, however, it’s an option worth exploring.
All you need to do is simply reach out to your insurance provider and ask about any accident forgiveness options that they offer. The conversation will likely take only a few minutes and could potentially save you hundreds of dollars.
Always Report the Accident to Your Insurer
Many people make the mistake of neglecting to report the accident to their insurance provider. After all, you won’t have to worry about your rates increasing if they don’t know about it.
Unfortunately, this could easily come back to haunt you in the future. In the event that the other party decides to file a lawsuit at a later date, it’s highly possible that your provider will simply refuse to pay the requested amount.
In fact, they may end up not paying anything at all, leaving you to handle the financial obligations on your own. In many cases, this could end up being tens of thousands of dollars.
This is especially true if the other party’s medical bills were notably high.
Consider Taking a Driving Class
After you get into an accident, you’ll be considered a liability by your insurance company. To help justify the risk they take by insuring you, they will raise your rates.
More often than not, these increased rates can be an issue for years after the accident. But, it’s possible to take a driving class that will allow you to prove to your insurance company that your driving habits have changed.
For example, let’s assume that your original monthly policy was $200. After getting into an accident, this number increases to $400.
After you take a driving class, you might be able to lower your amount to somewhere around $210. If this is an option that your insurance provider allows, they will give you a list of recommended courses to take.
It’s important to keep these in mind, since your insurance company may only accept classes from certain providers.
Raise Your Deductible
This option is often overlooked, but it can be particularly effective in lowering your insurance premium.
As previously mentioned, your insurance premium will increase after you get into an accident to help protect the insurance company. But, a key part of any insurance policy is the deductible that you pay in the event of an accident.
In general, policies with low deductibles tend to cost more per month since it will cost the insurance company more money to pay for the accident. In contrast, policies that have notably high deductibles will have lower car insurance monthly rates.
If you find that you are unable to decrease the amount you pay each month for your policy, you might be able to increase your deductible. This will allow you to directly lower your monthly premium.
Depending on the circumstances, it’s possible that you won’t be able to reach a reasonable monthly rate without a significantly large deductible in your policy. So, keep this in mind when making a decision since you could end up paying thousands of dollars before your insurance provider covers the cost of an accident.
Look for a New Policy
If all else fails, you may need to start looking for a new policy.
Fortunately, there are many insurance providers out there who are willing to work with people who have been in accidents before. Additionally, there are plenty of providers who offer flexible policy options.
To elaborate, you may not need a blanket amount of coverage in your policy, something that often significantly contributes to the cost. Instead, you can mix-and-match based on your needs.
This opportunity has the potential to save you a large amount of money in most circumstances. So, it’s something that shouldn’t be neglected.
Boost Your Credit Score
Interestingly, your credit score can have a large impact on the total cost of your insurance policy. This is true even for those who have been in accidents before.
The logic behind this is that individuals with high credit scores are typically viewed as being more responsible. As a result, they’re also viewed as less likely to file a claim for an accident.
So, it’s highly likely that taking steps to boost your credit score can drastically reduce the cost of your insurance policy after an accident. Combined with the above factors, and you may even find yourself paying less than you originally did before your accident.
Managing Post-Accident Insurance Can Seem Difficult
But, it’s not as complicated as you might think. From here, you’ll be able to ensure that you minimize your rates post-accident and secure a manageable policy.
Want to learn more about what we have to offer? Feel free to reach out to us today and see how we can help.