Here’s something you probably don’t ever want to think about. How much will your car insurance increase if you’re involved in an accident? Sure, it’s an unpleasant thought—but it’s something that you have to consider when you compare auto insurance premiums, if for no other reason than to make absolutely certain that you secure the cheapest deal possible. After all, what good are super low vehicle insurance rates if a fender bender will send them suddenly soaring?
The fact is, your car insurance premiums aren’t likely to go super sky high if you’re involved in an accident. But they can increase significantly, and painfully so if you’re already living on a tight budget. To find out what that amount’s going to be, be sure to read the small print on the policy to determine what the insurer’s surcharge schedule is. The average increase is somewhere between 20 and 40 percent if the accident is your fault, but since it’s up to the insurer the amount could end up being much higher or much lower. By performing a thorough comparison of surcharge percentages ahead of time, you could limit your financial exposure in the event of an accident.
But even if you’re able to ensure a low penalty surcharge by reviewing the fine details when you compare auto insurance plans, remember that you’ll very likely lose your good driver discount if you cause an accident. In some cases, those discounts can be pretty deep. Ultimately, the answer to saving money on car insurance is to drive safe and not cause accidents. If you can manage that, you’ll always find yourself in a good position to take advantage of low rates.