From small fender benders to multi-car collisions, accidents happen. While responsible drivers do their best to stay focused, attentive, and to utilize safe driving practices, sometimes accidents are unavoidable. If an accident occurs, having to deal with the insurance company can be frustrating and overwhelming. You may avoid an increase in premium if you have retained a clean driving record and the accident was not your fault. However, if the accident was your fault, someone was injured, or your past driving history shows you to be “accident prone,” a premium increase is very likely. While an increase in premium generally remains set for three to five years, there are some exceptions to this rule. Learn how to Reduce Insurance costs.
Always Communicate With Your Insurance Company
If there were no injuries, little to no vehicle damage, and the accident was not their fault, many people choose to keep minor accidents to themselves. However, if you were at fault, this is a risky option. There is an assumption that a statute of limitations exists on premium increases if you are deemed at fault. Unfortunately, this is a myth. If the other driver waits months to sue, your lack of communication may end up costing even more. In fact, you may lose the policy altogether, leaving you with damages and legal expenses. If the insurance company chooses to honor your policy, your premiums will undoubtedly increase.
Explore the Option of a Forgiveness Clause
While every insurance policy differs, most offer some variation of an “accident forgiveness clause.” If you are involved in your first accident but have an otherwise clean driving history, the company may consider overlooking the situation based on good driving behavior. These clauses may even allow for minor incidents that occurred prior to a standard three to five year period, with no moving violations. Check with your agent to see if you qualify for the forgiveness clause. Once again, communication is imperative.
Other Options
Considering alternative options with your insurance plan may provide significant cost savings in the end. For example:
Driver’s Education: Voluntarily participating in a refresher course will show your insurance company that you are a responsible driver taking steps to improve your skills. This may result in a premium decrease when it is time to renew your policy.
Deductible Increase: Increasing your deductible will lower your premium. Providing your finances will allow it, you may be able to manipulate up to a 40 percent decrease in your cost.
Other Discounts: If you carpool or choose public transportation to reduce your overall mileage, you may qualify for a discount. If you have an older car worth less than ten times the premium, you can save money by dropping collision. You may also qualify for a discount if you are a long-term customer.
Jodat Law Group – Motor Vehicle Accident Attorneys
If you have been injured in a car accident, you may be feeling overwhelmed by mounting medical bills, lost wages, and legal questions. Communicating with insurance companies can be confusing and frustrating in the wake of an accident. At Jodat Law Group, we highly recommend speaking with an attorney before making any statements to the insurance company. Our patient, knowledgeable legal team understands the financial, physical, and emotional stresses that are often involved. We have extensive experience with auto accident cases, and we can help you. Contact Jodat Law Group for a free consultation on your case.