How Much Can My Auto Rate Increase After One Accident?

Accidents almost always make your insurance rates increase. Whether or not the accident was your fault, your insurance company may have to pay for your involvement in it. Most 'at fault' accidents result in an increase in premium, because the accident will get rated against all of your coverages. When supply decreases and demand increases, costs get more expensive.

If you did not carry enough insurance at the time of your accident you may now be required to carry more insurance. Carrying more insurance equals higher premiums. Some companies may not want to offer you insurance coverage at all after you report an accident.

As I stated earlier, when you are involved in an accident your insurance company may have to pay for your claim - even if the accident was not your fault. These types of coverage - Personal Injury Protection, Medical Protection, Uninsured Motorist, and Collision - will cover you and the people in your vehicle when the accident is not your fault.

If you are 'at fault' for the accident, theses types of coverage - Personal Injury Protection, Property Damage Liability, Bodily Injury Liability, Medical Payments, Collision, and Other than collision - will help cover you, the people in your vehicle, your vehicle, the other party, and the other's party's property.

Now, if you are 'at fault' for the accident, there are various reasons why your rates will increase. The first is having your current insurance coverage premium's reflect the charge for this accident. Insurance companies usually charge 'points' to your policy at its renewal. Depending on the insurance company, these points will be charged to your policies for three, five, or even seven years.

The next more expensive rate will be if your state requires that you carry an SR-22. You will need to carry this form and its necessary coverages if you did not have enough insurance at the time of the accident. Getting an SR-22 will cause you more money and even more aggravation by spending time getting this offense taken care of.

You will need to carry this form and its required coverages for three years - whether or NOT you own a vehicle. There are some insurance companies who do not write SR-22 policies. To make sure you are carrying enough insurance to avoid this form and its required coverages, contact your state's Department of Motor Vehicles.

Another way an accident can increase your rates is due to the basic macroeconomic terms, which I am sure everyone has heard of, supply and demand. When the supply is high and the demand is low as a result the price is low. Conversely, when the supply is low and the demand is high the result is the rates are higher.

This principle also applies to car insurance. When you are 'at-fault' in an accident, there are some companies who will not insure you. You have just cut the supply of insurance companies and increased your demand. As a result, your rate is higher. Like stated previously, some insurance companies will not write SR-22 policies. This further lowers the supply of insurance companies and further increases your demand. And, as a result, you will have a higher insurance rate. And when you add the insurance 'points,' you can see how expensive an accident can be.

Take preventative measures to avoid accidents. Avoid distractions, be aware of your surroundings, and do not drive in adverse weather conditions, if you have a choice. As you can see, an accident can have an impact on your rates, especially if you are at fault for it.

Visit http://www.carinsurance.com for a Car Insurance Quote in your State

John Machmiller is a representative of CarInsurance.com. You can visit CarInsurance.com at http://www.carinsurance.com or contact them at 1-877-327-8728.

CarInsurance.com's online insurance marketplace gives an opportunity to consumers and to insurance companies. We offer the ability to shop for car insurance online.

Consumers can receive quotes from many insurance companies, in some states you are able to purchase your insurance instantly, online. You don't have to drive your car to buy car insurance. Buy online... anytime!

---

How To Negotiate A Settlement With An Insurance Claims Adjuster

You and I. M. Strong, the adjuster from Granite Mountain... Read More

Auto Owners Insurance ? Do You Really Need It?

If you think you don't have any need for auto... Read More

Insurance Claim Handling Online - TPA Adjuster System

Claims management and administration software systems enable insurance claims adjusters,... Read More

About Online Term Life Insurance Rates

Online term life insurance ratesHow simple it is today finding... Read More

Compare Car Insurance Companies Before You Commit

If you want to save money on your car insurance,... Read More

Life Insurance Benefits

Life Insurance is a legal contract between you and a... Read More

Choosing Affordable Health Insurance For Children

In most cases, private health insurance comes through a person's... Read More

About Accidental Death Dismemberment Insurance Quote

We don't hear much about getting an accidental death dismemberment... Read More

Health Care and Health Insurance Costs Can Be Controlled Through Lifestyle Choices

As you probably know all to well, the cost of... Read More

How To Best Handle Health Insurance Plan Changes

Many economists have suggested and recent economic data indicates that... Read More

How Can I Compare Life Insurance Quotes?

The online life insurance companies offer a free service where... Read More

Car Insurance Advice for Young Drivers in the UK

Over the course of the last ten years, car insurance... Read More

The Need For Life Insurance

A person needs to reexamine their life insurance needs every... Read More

Individual or Family Health Insurance Options

As more and more individuals working at home with or... Read More

Life Insurance No Medical Exam - Is It Really Possible?

Quite often you feel that an ad for life insurance... Read More

Motor Insurance with Pass Plus

Is pass plus really worth it? What motor insurance discounts... Read More

Insurance Adjusters How They Work And How They Think

Here comes the insurance adjuster. Is he overly friendly? If... Read More

Tips For Lowering Your Auto Insurance Quote

Do you have many claims? If so, you should do... Read More

Apply Online for Temporary Health Insurance

There are times when you'll find yourself temporarily without health... Read More

Theres No Problem Getting Texas Auto Insurance in Texas

Everything is big in Texas and so it is with... Read More

Gain An Advantage Over Your Competition By Controlling The Cost Of Your Health Insurance

As many of us expect, the New Year will bring... Read More

The Life Insurance Plan Online

Thank goodness the internet age has arrived helping us to... Read More

An Intro To Life Insurance

There are many options available for life insurance, and for... Read More

Medical Insurance Overseas

Thousands of people have work related commitments and in order... Read More

Family Health Insurance Plans - How to Find The Best Provider Online

Family health insurance plans typically need to offer more coverage... Read More

How Much Car Insurance Should You Buy?

Car insurance is one of the most dreaded chunks in... Read More

Life Insurance: Who Needs It And How Much Do You Need?

Your friendly, neighborhood life insurance agent is most likely to... Read More

Underwriting Life Insurance For Diabetics and Diabetic Life Insurance Information

Life Insurance Companies differ in their "underwriting philosophy" when it... Read More

Health Savings Account (HSA): Useful for Women in Childbearing Years?

The Health Savings Account (HSA) is an amazing tool that... Read More

Insurance and The Engineer

The world is no longer right when the two words,... Read More

The Many Benefits of Travel Protection Plans

Many people purchase insurance thinking I want full coverage and... Read More

Health Savings Account (HSA): Do I Lose It At the End of Each Year?

The Health Savings Account (HSA) is an amazing tool to... Read More

Discount Auto Insurance - Get Low Rates And Superior Coverage

Auto insurance rates can be quite expensive. If you are... Read More