your question didnt come up complete, but to answer what i think is your question (will my rates go up becuase of an accident) it can, but depends on the company. best to ask the agent as he knows the products and underwriting guidlines.
if at fault, rates can go up b/c you lose a claim free discount, in addition, the driver can be surcharged for the at fault claim. the rate increase is not necessarily based on the amount claimed, but the actual claim. so be careful of nickel and dime claims. if a claim free discount is 25% and the surchage is 20%, thats a 45% increase and very typical of one might see regarding an increase due to a claim. many companies are offering "accident forgiveness", so if you have this prior to the loss, it will keep the rate from going up. in addition, some companies automatically give this to customers after they have been clean 5 years. basically a get out of jail free card once every 5 years.
if not at fault, the rate typically doesnt go up. however when changing from one company to another, the new company may not be able to offer the claim free discount. again each company is a little different, really depends.
for price shoppers, the cheapest rate isnt always the best deal. you have to consider what will happen when you need the insurance. ie, claim service, local adjusters, local agent, rate increases, coverage differences. full coverage has many different definitions. are you covered if someone borrows your car? if an unisured driver hits you? if your'e driving a friends car? will my rates go up after an accident, if so how much? will this new cheap rate go up at my next renewal? (bait and switch) do i have to used after-market parts? will you provide a rental? what if i break down?
lots of reasons to consider when buying insurance, although price should be a big factor, it's not just about saving a few bucks.
Posted: Fri Jan 21, 2011 03:44 pm Post Subject:
your question didnt come up complete, but to answer what i think is your question (will my rates go up becuase of an accident) it can, but depends on the company. best to ask the agent as he knows the products and underwriting guidlines.
if at fault, rates can go up b/c you lose a claim free discount, in addition, the driver can be surcharged for the at fault claim. the rate increase is not necessarily based on the amount claimed, but the actual claim. so be careful of nickel and dime claims. if a claim free discount is 25% and the surchage is 20%, thats a 45% increase and very typical of one might see regarding an increase due to a claim. many companies are offering "accident forgiveness", so if you have this prior to the loss, it will keep the rate from going up. in addition, some companies automatically give this to customers after they have been clean 5 years. basically a get out of jail free card once every 5 years.
if not at fault, the rate typically doesnt go up. however when changing from one company to another, the new company may not be able to offer the claim free discount. again each company is a little different, really depends.
for price shoppers, the cheapest rate isnt always the best deal. you have to consider what will happen when you need the insurance. ie, claim service, local adjusters, local agent, rate increases, coverage differences. full coverage has many different definitions. are you covered if someone borrows your car? if an unisured driver hits you? if your'e driving a friends car? will my rates go up after an accident, if so how much? will this new cheap rate go up at my next renewal? (bait and switch) do i have to used after-market parts? will you provide a rental? what if i break down?
lots of reasons to consider when buying insurance, although price should be a big factor, it's not just about saving a few bucks.
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