Getting into a car accident can turn out to be a costly experience. In addition to medical bills and vehicle repairs, there’s also the possibility of facing increased auto insurance rates. Providers take a variety of considerations into account when calculating premiums, but a person’s driving record often plays the biggest part in determining how much they pay. While every situation is unique, it’s helpful to know what could happen to your coverage costs after being involved in a collision. Here’s some insight into how the price of your policy may be affected. 

Understanding the Connection Between Accidents & Auto Insurance Rates 

When Do Premiums Increase? 

Whether or not your auto insurance premiums go up after an accident is typically based on a few factors, including your age, previous claims history, and who caused the collision. Tennessee is an at-fault state, meaning whoever is found responsible will be financially obligated to pay for the resulting damages.

Therefore, if you’re determined to be at fault, it’s likely that your insurer will raise your rates to recoup a portion of what they must pay out. However, some companies offer accident forgiveness for a policyholder’s first incident, guaranteeing that coverage costs won’t increase. Any subsequent claims will probably lead to a higher premium, however.

How Much More Will You Pay?

Rate increases largely depend on the insurance company, the state, and the severity of the collision. When an insurer decides to raise coverage costs after a collision, a surcharge schedule is generally used to help set the new premium. A ballpark number to keep in mind for the increase is 25-30%.

How Long Does an Accident Stay on Your Record?

The exact amount of time an accident stays on your driving record can vary according to the circumstances surrounding the incident. In most cases, insurance companies will review the past three years of your driving history when deciding how much to charge you. After that, the incident will drop off your record and won’t factor into your premium calculations. Collisions involving more serious violations, such as a DUI, may stay on your record for 10 years. 

If your auto insurance rates have gone up significantly after an accident, turn to Lafever Insurance Agency for assistance finding a more affordable solution. They specialize in helping high-risk drivers secure quality coverage without having to pay more than necessary. As an independent agency, they’re able to provide Cookeville, TN, residents with a variety of product options from a number of reliable carriers. Call (931) 526-3377 to request a free quote today.