Fender benders and the like are an anticipated part of life, and though you're protected with auto accident insurance, you may still have concerns about what's going to happen to your insurance rates when you file a claim. Will your rates go up, and if so, how much? Will you be canceled? What if the accident wasn't your fault? What if it was? There are no simple answers to these questions,
as the process of establishing auto insurance premiums is very complex, and each accident is analyzed using many variables, including fault, history of accidents, moving violations and auto insurance claims, as well as age, car type and much more. Not your fault: If the accident is not your fault, it's the first in which you've been involved, and your driving history is free of moving violations and/or insurance claims, you may have no premium increase at all.
Your fault with bodily injury: If you are at fault and someone is injured you will most likely lose your good driver discount and could see a 20 to 25 percent premium increase.
Non-renewal & cancellation: Your insurance company may also decide not to renew your policy if your driving record gets markedly worse or you have several auto accident claims. Different insurers have different rules about what constitutes an unacceptable driving record, but there are a few accidents, such as those caused by drunk driving, that will probably trigger a non-renewal from virtually every insurance company.
Practices vary from company to company, but in general, an insurer will increase your premium by specific percentages for each chargeable claim made against your policy above a specific dollar amount. A chargeable claim is one the insurer considers primarily your fault. The percentages and ceilings vary from company to company. These increases generally stay on your premium for three years following the claim.
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