Recovering from an Accident with Insurance

You know the drill: After you’ve suffered a car accident, the odds are high that your insurance payments are going to jump. But, here’s what you may not know: This increase doesn’t have to be permanent. The steps you take following an accident can help you lower your insurance rate back down to a more reasonable level.

There’s one simple key to reducing the time it takes you to recover from an auto accident. You must make sure to drive safely.

That sounds like common sense. But, it’s actually crucial. If you get into another accident, or if you receive a speeding ticket or some other moving violation, your insurance rates will jump again. And, this time, the rates will skyrocket. The only way to prevent this from happening is to drive as safely and responsibly as possible. As your driving record remains spotless, you’ll notice that your insurance rate will start to fall. That’s by design as insurance companies reward drivers who avoid accidents and speeding tickets.

You can take other steps to recover from an accident, too. Try buying an alarm system for your car. Insurance companies will often lower their rates for drivers who protect their vehicles from thieves. Try driving fewer miles each week, too, perhaps taking the train or bus to your job. Again, insurance companies reserve lower auto rates for those drivers who use their car less frequently. The theory is that you’re less likely to get into a costly accident if you drive fewer miles.

Finally, consider investing in a secure parking garage. If you park your car outside on a street each night, your insurance company will again charge you higher rates.

An auto accident is a stressful event. But, by taking some simple steps, you can increase the odds that an accident won’t boost your insurance rates for too many quarters.

How are Auto Insurance Rates in a Particular Areas Determined?

There are many factors that go into determining the cost of an auto insurance policy. The total amount a consumer pays is based on the potential amount of risk seen by the insurance company. The total risk takes into consideration the driver, the vehicle and the geographic area where the vehicle is registered and driven. Understanding the geographic risks may help consumers locate the best insurance for their needs.

Claim frequency of a defined group:

Groups can be defined by driver’s age, experience, marital status and the particular area of residence. The location factor will take into consideration the number of claims for the area and the dollar value of the claims. Location is normally referred to as territory and the territory group looks at a few specific factors.

Number of vehicles on the road:

Residents in larger cities may find higher auto insurance rates than those in rural locations. As the number of vehicles on the road increases, the potential for accidents increases. Insurers will look at the number of vehicles per square mile. While a consumer may not be able to control the location, a discount may be available for drivers that carpool. If the vehicle is not used on a daily basis, the insurance rate may be reduced.

Value and repair costs for vehicles:

The overall value of vehicles in some territories may be a factor in that group’s rate. Certain locations have a larger number of high-end vehicles on the road. Repair costs may also be higher for particular areas. These factors might not make a large difference in how the insurance rate is determined but can be a consideration.

Theft rates:

Certain locations have higher rates for auto theft. These particular areas are usually urban. Even if a vehicle is not being insured against theft, the potential for damages may increase the costs. This is one factor that a consumer may be able to influence if the vehicle is equipped with reliable anti-theft devices.

Fraud:

Unfortunately, a particular area may have a higher rate of insurance fraud. Areas that are experiencing a heavy economic downturn can be seen as riskier to an insurer.

To fully understand the factors that affect how auto insurance rates are determined, speak with an agent. A professional will be able to find the best auto rate for a particular area and the other factors combined to quote the insurance cost.

Tips for Keeping Teen Driver Auto Insurance Rates Under Control

Tips for Keeping Teen Driver Auto Insurance Rates Under ControlWhen the insurance premium is high for adults only, the premium for notorious teenage drivers will be even higher. Every teenager will face high car insurance premium till they are experienced drivers. To get really good at driving, it will take lot of time and lot of practice is required, because driving is a learned skill. While driving, new drivers will undergo many accidents and these accidents statistics will be translated into higher insurance rates for teenagers and inexperienced drivers. Teenager drivers can do a few things to reduce the insurance rates.

  • Discounts for Good Grades : To get good marks, car insurance should not be the motivation. Many insurance companies charge less premium for young drivers who consistently score high marks. Poor performance in school and accidents done by the teenagers will result in higher insurance rates.
  • Taking No Alcohol : Teenage drivers try to test their boundaries and hence end up paying high insurance rates. Alcohol is one of them. Combination of alcohol consumption and inexperienced driving can lead to accidents and may end up paying high insurance rates. Many schools in U.S encourage the students to sign the pledge promising to make them stay away from alcohol till they are of the legal drinking age. You will be lowered with less premiums from the insurers if you have such commitments.
  • Driver Education Course : Many insurance companies give discount if the drivers have completed the driver education course, because you can learn skills which the new drivers can learn and use them to avoid accidents and dangerous situations.
  • Choose a Safe Car : Your insurance rate matters on what kind of car you have no matter what your age is, but your premium will be more if inexperienced young drivers are there in the policy. Hence choosing the right car for the teenager is important.

Understand What You Are Paying For

  • Paying for What ?Vehicle mileage :Your car insurance premium will be directly proportional to the usage of the vehicle. If you drive more and if mileage is increased then you will have to pay more premium. You will have to pay more premium because the more you drive the more you are prone to accidents.
  • Age, Gender, marital status : The premium rates for female drivers will be less when compared to male drivers. Male drivers who are 25 years and are unmarried pay more insurance premiums. Premium depends on the traffic records and if they are prone to risk.
  • Type of the car : You will have to pay through your premiums for the fancy cars you own. The costlier the car, the costlier will be your premium. Your insurance rate will be less if you are driving a basic model or a old car. Insurance companies judge the premiums based on the car model history. They keep record of the accidents that model has had and number of thefts of that model and so on.
  • Area of residence : Statistics have made based on the area of residence and later the premiums are decided based on it. Your insurance rate will increase if your area is prone to more car thefts and has got many car accidents in the past. If you are staying in a area which is more crowded or in the city centers then those areas are more prone to thefts and hence you need to end up paying more premiums. If you are staying in a residential area then your premium rates will be lesser. If you are staying in area which has history of natural disasters then you will have to pay more premium.
  • Individual Driving record : The factor which affects your premium rates the most is the driving record. Your premium will be less if you have clean driving record. If you have committed many traffic accidents then your premium rate will increase.
  • Type of Coverage : Depending on the type of insurance you choose, your premiums vary. Each company has different coverage type when you opt for. If you select basic coverages then your premium rates will be lower but if you will have to pay more if you opt for comprehensive coverage.