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Accidents and the Effect on Rates for Auto Insurance Lacey

Accidents and the Effect on Rates for Auto Insurance Lacey Posted on July 1, 2014

Many people wonder what is the effect of accidents on car insurance premiums. Consumers in the Lacey worry about their rates after getting into accidents. The result of an accident on premiums may range from nothing to being unable to get coverage at any price. Each situation is different. However, it can be very helpful for motorists to understand when an accident will result in increased premiums and when it will not. However, avoiding accidents is a good way to pay less for Auto Insurance Lacey.

The most important factor in premium increases due to an accident is whether or not someone on the policy was responsible for the accident. This is usually determined by the insurance companies like domain URL rather than by the police. Nevertheless, a police report can still be helpful in determining who really caused the accident. In many instances, the physical evidence from the accident is very helpful in determining who was at fault. The driver who is determined to be responsible for the accident will face premium increases upon the end of the current car insurance policy term.

Another important factor when determining the potential premium increases on car insurance is the amount of money paid by the insurer covering the responsible motorist. If the claim is of sufficiently low amount, the premium increase may not be much. On the other hand, large claims may lead to bigger premium increases upon the next renewal. A large factor may make an insurance company refuse to renew the policy. Both the policyholder and the insurer have the right to refuse to renew an existing policy.

Finally, the number of at fault accidents is important in determining premiums. Ideally, motorists should have zero accidents. One at fault accident will cause a moderate increase in premiums. Additional accidents will likely lead to large premium increases or even cause the insurer to refuse to renew the policy for another term. Because of that, it is very important for motorists to avoid causing accident within three years of the first at fault accident.

Those who want to learn more about the effects of accidents on premium rates should contact the people at SAV-ON Insurance Agencies Lacey. They can help consumers understand how previous accidents may have caused premiums to go up.

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