Unfortunately, accidents occur every day on the road. While bodily injuries and vehicle damage are the most pressing concerns, many involved also wonder if their auto insurance rates will increase. The answer often depends on the circumstances.

Which Circumstances Affect Insurance Rates After Accidents

The details will vary with each auto insurance company. For the most part, if you didn’t cause the accident, your premiums will not increase. Some carriers also offer accident forgiveness programs, which allows policyholders to keep their rates from rising after their first at-fault accident. However, the program may have requirements like the driver needs to be a long-time customer or have a clean driving record for a certain number of years.

In other cases, your auto insurance premiums might increase after an accident. These include if you just purchased a new vehicle or if someone submits a claim for bodily injuries. In the latter instance, coverage for medical expenses tends to be high, and carriers justify the costs by raising insurance rates. Most states look at several factors to determine when a policyholder could see a bump in premiums after an accident, including driving experience, gender, and age.

How to Keep Rates Down After an Accident

You can take several steps to reduce your premiums if you caused an accident. If you pass a defensive driving course approved by your auto insurance provider, they may apply a discount on your rates.

Another way to keep premiums affordable is to reduce your deductible. You’ll typically pay more out of pocket for repairs if you’re involved in an accident, but your monthly premiums might be lower.

Be sure to report all accidents to your insurance provider, no matter how minor. If you fail to do so and another driver sues you down the road, your provider may not be in your corner. In addition to having to pay the costs on your own, you could see an increase in your premiums.

If you get into an accident, having reliable auto insurance in place from Mutual Underwriters will offer financial peace of mind. Since 1958, they’ve served Hawaii residents and business owners from five offices in Honolulu, Waipahu, Wailuku, Kona, and Hilo. Count on their team to provide customized coverage for everything from protection for your vehicles and boats to homeowners, life, and health insurance. Visit the website to learn more about their offerings, or call (808) 532-2888 for free insurance quotes.