Being involved in a car accident can be physically and emotionally traumatic. And even after the mental and physical wounds start to heal, there can be many other problems to deal with because of the accident. One issue that upsets many people is the fact that their car insurance premiums will usually go up following an accident. This can seem very unfair, especially if the incident was not your fault. We are here to explain to you why you car insurance premiums increase following an accident that wasn’t your fault and some ways that you can deal with this situation.
It is important to remember that insurance companies are risk averse. If you are involved in a car accident, regardless of whether it was your fault or not, you will be seen as a higher risk to them. A higher risk customer receives increased premiums. Also, most insurance companies will require their customers to inform them of any incidents, irrespective of fault and an intention to claim. So, it seems there is no escape from raised rates whenever an accident occurs.
You may understand all that, but are just confused about how insurance companies can get away with this practice. Many providers say that their statistics show that if a driver has been involved in an accident this increases their chances of being a part of a subsequent one. Therefore, that customer is more likely to raise an insurance claim in the future.
Why are drivers involved in an accident more likely to claim in the future? Insurers put this down to a number of reasons such as the roads they drive on and their driving habits. For example, the insurer might see you as a driver that drives in a way that increases the risk of a crash, without actually causing it.
While this might not seem like a valid justification to you, the good news is that there are things you can do to avoid this outcome. Not all car insurance providers will raise premiums following a non-fault accident. It will take a bit of digging to find the insurers that don’t. But once you do, you might wish to switch to them to avoid having to pay out in case of an incident in the future.
But if you have already been involved in an accident, that won’t be much help in the present. In this case, you may wish to claim compensation for the crash that was caused by someone else. Companies like Access 2 compensation can help you to establish whether you are eligible to claim and for how much. This money could allow you to cover the raised premiums while you shop around for a better policy with an alternative insurance provider. It will also help with any other financial problem arising from the crash.
It can seem very unfair to be subject to increased premiums following a car accident. However, we hope you will get some comfort in the knowledge that there are things you can do to lessen this burden.