How will an accident or claim affect my coverage/monthly premium?

If you have been in a car accident recently and you are waiting to find out what type of impact it will have on your insurance policy coverage, it can certainly be a nerve wracking time. Fortunately, the impact of an accident upon your monthly premium is often not nearly as bad as one might imagine. The best course of action is always to have a frank and honest discussion with your auto insurance provider, so that you can get the specifics about your policy and your situation.

However, even though you can’t find out exactly the degree of impact on your premium just by searching online, you can get a good idea of how your claim or accident could affect your policy even prior to speaking with your insurance agent. Here are some of the basics on how an insurance policy is generally impacted by an accident or a claim.

The Percentage Raise in Your Premiums

Most of the time you will see a small specified percentage raise in your monthly premium following an auto accident that resulted in a claim. Although this is standard for any accident which was caused by you or mainly caused by you, it will not apply in cases where another driver was at fault. In cases where there is a small amount of contributory negligence, it may not affect your policy premiums either. Contributory negligence essentially means that you have contributed to the accident circumstances in some way — but nearly all accidents are alleged to have some degree of contributory negligence, so you need not worry about a premium raise if the other driver was almost totally at fault. The percentage rate can really vary quite widely between insurance providers, so it very helpful to discuss such specifics with your agent. An average percentage for a first at fault accident violation is a 10 percent raise in liability, comprehensive, and collision coverage types.

Keeping Your Coverage

You won’t need to worry about losing your insurance coverage unless you have multiple at fault at fault accidents in a relatively short period. Your insurance provider will always be there to let you know if a situation like this is developing.

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