There are many things that can influence the price that a person pays for automobile insurance. One of the primary contributors, however, is an individual’s driving record. Because car accidents occur with unfortunate regularity and at varying degrees of severity, nearly every situation is unique. In order to determine when an accident will affect an individual’s policy there are a number of details that should be considered. Collisions that result in little or no damages may have no impact on a person’s rates, while more serious situations will likely have the opposite affect. Additionally, motorists should consider who is at-fault for the accident as well as the frequency of vehicle related incidences. The severity of an accident can have a considerable impact on the degree that one’s coverage costs are affected. In many situations, low speed collisions or fender benders resulting in few or no damages may have no affect at all. Such occurrences may be regarded as unchargeable or entirely dismissed by one’s policy provider. If damages exceed a specific amount – typically $750 – and people are injured as a result of the accident then the confrontation is likely to be reported to the state Department of Motor Vehicles and the involved motorists are likely to see negative alterations in premium prices. Many insurers determine how long accidents affect insurance rates and the degree of change differently, and oftentimes a motorist’s driving record is a major contributor. Poor Records Affect Insurance After Accidents If a motorist with a flawless driving record is struck by another automobile then it is unlikely that the policyholder in question will experience a tremendous rate increase. A vehicle owner with a long history of collisions and claims, however, may experience the opposite affect or may even be denied future coverage. Motorists with frequent claims are typically considered to be high-risk drivers because of the increased likelihood of being involved in future incidences. At times, motorists that are of a higher risk, including teenagers and inexperienced drivers, will see steeper rate adjustments after being involved in an accident. Being at-fault for an accident may also has a negative affect on one’s premium, particularly for individuals that cause an accident as a result of driving under the influence. Cases involving alcohol or illegal substances are usually met with harsher penalties and premium adjustments. According to the Centers for Disease Control and Prevention there were roughly 10,839 people killed in alcohol related crashes in 2009, which accounts for nearly one-third of all accident related deaths. Because of the potential severity of these situations many insurers may even deny coverage for a motorist that causes an accident as the result of being under the influence. Such blemishes then remain on an individual’s record for an extensive duration, typically three years, making it difficult to obtain an affordable policy in the future. Although accidents do typically have an impact on one’s rates, the affect is almost entirely dependent on the situation. Making the effort to either remain or become an attentive and competent motorist is an excellent way to avoid many unfortunate circumstances. Source: http://www.onlineautoinsurance.com/learn/how-accidents-affect.htm

There are many things that can influence the price that a person pays for automobile insurance. One of the primary contributors, however, is an individual’s driving record. Because car accidents occur with unfortunate regularity and at varying degrees of severity, nearly every situation is unique. In order to determine when an accident will affect an individual’s policy there are a number of details that should be considered. Collisions that result in little or no damages may have no impact on a person’s rates, while more serious situations will likely have the opposite affect. Additionally, motorists should consider who is at-fault for the accident as well as the frequency of vehicle related incidences.

The severity of an accident can have a considerable impact on the degree that one’s coverage costs are affected. In many situations, low speed collisions or fender benders resulting in few or no damages may have no affect at all. Such occurrences may be regarded as unchargeable or entirely dismissed by one’s policy provider. If damages exceed a specific amount – typically $750 – and people are injured as a result of the accident then the confrontation is likely to be reported to the state Department of Motor Vehicles and the involved motorists are likely to see negative alterations in premium prices. Many insurers determine how long accidents affect insurance rates and the degree of change differently, and oftentimes a motorist’s driving record is a major contributor.

Poor Records Affect Insurance After Accidents

If a motorist with a flawless driving record is struck by another automobile then it is unlikely that the policyholder in question will experience a tremendous rate increase. A vehicle owner with a long history of collisions and claims, however, may experience the opposite affect or may even be denied future coverage. Motorists with frequent claims are typically considered to be high-risk drivers because of the increased likelihood of being involved in future incidences. At times, motorists that are of a higher risk, including teenagers and inexperienced drivers, will see steeper rate adjustments after being involved in an accident. Being at-fault for an accident may also has a negative affect on one’s premium, particularly for individuals that cause an accident as a result of driving under the influence.

Cases involving alcohol or illegal substances are usually met with harsher penalties and premium adjustments. According to the Centers for Disease Control and Prevention there were roughly 10,839 people killed in alcohol related crashes in 2009, which accounts for nearly one-third of all accident related deaths. Because of the potential severity of these situations many insurers may even deny coverage for a motorist that causes an accident as the result of being under the influence. Such blemishes then remain on an individual’s record for an extensive duration, typically three years, making it difficult to obtain an affordable policy in the future. Although accidents do typically have an impact on one’s rates, the affect is almost entirely dependent on the situation. Making the effort to either remain or become an attentive and competent motorist is an excellent way to avoid many unfortunate circumstances.

Source: http://www.onlineautoinsurance.com/learn/how-accidents-affect.htm