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How Minor Accidents Complicate Online Car Insurance Quotes
August 19th, 2010
The core idea behind a car insurance coverage is to safeguard oneself from potential losses that can pave way into our lives because of major or minor accidents. Those seeking affordable car insurance quotes must be already aware of the fact that having a "clean" driving history helps a great deal. That being said, not many people out there realize that a single car accident can change the fate of their insurance coverage plan. Unfortunately, minor accidents can result in major payouts by insurance companies.
Today, car insurance quotes and price hike due to accidents go hand in hand. Not every insurance provider out there is generous enough to forgive minor accident that could have occurred due to an unfortunate incident. If your company has no forgiveness plan, you will have to pay out of pocket any additional amount towards the coverage, in case the insurance provider increases your rates after a minor accident. Most companies charge 10% surcharge for the next 2 to 5 years based on the severity of the accident. Some states have laws that forbid insurance providers from raising their premium for first time accidents. However, this law is applicable only in few states and in case of minor accidents, where you were not at fault. For instance, if your car has been struck by a speeding vehicle, then your case could be dismissed after a thorough investigation.
The most damaging effects of insurance coverage and minor accidents come into play when alcohol is determined to be the cause. Minor accidents under the influence of alcohol are given no consideration, so one can expect a great surge in the existing car insurance quotes. It's difficult to precisely estimate the price hike after an accident because there are many factors that are taken into consideration, mainly the driving history and accident circumstances. The price hike might not be an immediate effect; however, it will come into play while renewing the policy. That being said, you always have the option to switch providers, in case you feel that the rates have increased out of proportion. There is no guarantee that the new insurance provider would be willing to spare you for minor accident, and thereby not think about raising the price.
In conclusion, expect increased rates from insurance providers even if it's a minor accident. Every insurance company has a rigid methodical formula for calculating the rates and will enforce this policy. It's imperative for one to choose an insurance provider that offers adequate support when you need them the most. In return, drivers must be responsible and avoid minor accidents when possible and never drive under the influence.
