Every single driver, even really good ones, can have a undesirable day on the road. But whether you merely dinged a parked car or triggered a multi-automobile pileup, accidents can actually do a quantity on your auto insurance quotes in the future.


About 5.6 million car crashes have been reported to police in 2013, the most recent numbers accessible from the National Highway Traffic Safety Administration. And according to the Home Casualty Insurers Association of America, you will file a claim for a collision about when each and every 17.9 years, meaning the average driver will have 3 or 4 accidents in a lifetime.


So yes, accidents occur. And they don’t often imply greater rates, but they do play a function if you are shopping for auto insurance quotes.


Contributing factors 


Auto insurance firms pull the driving record of any individual who’s applying for a policy. Most look at the following elements when reviewing accidents:


  • Severity of the crash: Damages from an accident can run the gamut, from easy paint scratches to a totaled car. Typically, the much more extreme the crash, the more most likely it is you will get a rate boost or, if you are comparison shopping, higher auto insurance quotes.

  • The at-fault driver: In several circumstances, your prices will go up if an accident is your fault, but remain the same if someone else was to blame. Nonetheless, some organizations (depending on state law) will quote you a larger rate regardless of fault because you are noticed as a greater threat to insure.

  • Your driving record: One accident could not impact your auto insurance quotes, in contrast to somebody who has a record of numerous crashes.

Auto insurance coverage quotes vary by insurer


Every business has its own guidelines that decide how an accident will have an effect on your auto insurance quote. Some might quote you a greater price since of an accident, although other people may possibly forgive and neglect below such circumstances.


In some states, such as Massachusetts, there are laws limiting premium surcharges and the length of time you can be surcharged. If you want to know your prospective price enhance, ask your agent for the insurer’s “surcharge schedule.”


Accident forgiveness


Most insurance firms offer a policy selection identified as accident forgiveness to consumers with excellent driving records. Usually, this allows you to have 1 accident without a price boost regardless of fault. But it’s accident forgiveness, not “forgetness.” If you have a second accident, expect to pay a greater premium.


Automobile accidents take place to very good and undesirable drivers. They do not constantly lead to pricier auto insurance coverage quotes, but they do play an crucial part in how considerably vehicle insurance charges when you are shopping about for a new policy.


Sarah Cooke is a employees writer covering individual finance for NerdWallet. Comply with her on Twitter @sarah_wolfe and on Google+.


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