As a new driver, maintaining a record free of accidents keeps you safe and your vehicle functional. It also avoids car insurance premium spikes. Here, learn how an accident affects your auto insurance, including whether it’s the first or subsequent accident.

What Do I Need to Know About Car Insurance & Vehicular Accidents?

What Does “At-Fault” Mean?

An at-fault accident, or a collision that is the direct result of your actions, increases your premium depending on whether it’s your first accident or not. Even single-car accidents can affect your monthly rates, such as a collision with a telephone pole or tree. 

If the other driver is found 100% at fault for the accident, such as a driver who was speeding and hit the back of your vehicle, your premium will not increase. Your monthly rate may also stay the same if the accident was your first. Insurance companies can typically provide forgiveness for a single accident during a six-year time frame. However, not all car insurance policies include first-time accident forgiveness. 

First Accident Penalties

While your premium may not go up after your first accident, the incident remains on your driving record for three years. If the accident occurred because of a traffic violation on your part, the local traffic court will take your age, insurance company, the area where you live, and how long you have had a policy with your carrier into consideration. The court will also issue penalties in light of the type of accident and total cost of auto repairs.

You can expect your premium to increase if the accident was severe and if you live in a no-fault car insurance state. No-fault car insurance means the carrier pays for damages regardless of who was at fault, which typically causes the driver’s premium to go up. If you reside in a contributory negligence state such as North Carolina, the driver that caused the accident pays for damages exclusively.

Subsequent Accident Penalties

Multiple vehicular accidents generally cause car insurance premiums to rise. How much they increase depends on the severity of the accident and related damages, as well as factors such as your age and driving history. Younger drivers with multiple accidents or tickets typically see their premiums increase considerably compared to older drivers with near-spotless driving records. 

Review your car insurance needs with Tammy Ross Insurance to obtain the right coverage. The independent insurance company based in Monroe, NC, has provided residents throughout the Tristate Area, including Dayton Metro, Montgomery, and Greene Counties, with reliable services since 1998. Customers always receive next day calls after appointments to guarantee satisfaction, and all of the personable agents enjoy over 20 years of experience. Call (704) 233-4981 today to get started or learn more about car insurance services online. Get additional insurance tips on Facebook.