If there's one thing that all drivers have in common, it would probably be the fear of getting involved in an accident. It may be just a simple fender-bender, but no matter how small the mishap could be, there is always a price to pay. Even when drivers come equipped with their insurance policies, and even when the insurance company has already covered the vehicle's damages and repairs, the problem may seemingly carry on as your car insurance rate is likely to increase after a collision.
Its increase depends on several factors, such as the severity and type of accident, degree of driver's fault (unless given a "no-fault" state by the authorities), the insurance claim type that is filed by either of the parties involved; and if given a ticket, the type of violation committed.
Even when not at-fault, the insurance company will still have to sustain some costs. There may be an increase in your car insurance premium since the accident will be charged against your car insurance coverage. The main reason why car insurance quotes increase is due to the fact that many people are already considered high risk drivers when requesting information. All insurance companies base their premiums and policies on risk-factors. So, if you have incurred just a speeding ticket prior to the accident, you can be considered an at-risk driver. The company will also usually charge points to your auto insurance policy. These points will be charged for a certain period of time ranging from 3 to 7 years, depending on the company's policies and standards. When involved in an accident, you can generally expect a premium rate increase of 20-40%. This percentage of increase is based on the Insurance Services Office's (ISO) criteria of raising a premium after an accident. Also, based on the ISO, there is a surcharge of 20% of the base rate for multi-car policies; while it goes up to 40% for single-car policies.
Other factors to be considered after an accident would be the driver's age, gender, and driving record. If you have a good driving record, this may keep insurance rates lower. It is possible that some car insurance companies will not increase premium rates after the first accident, if prior to it, you hold a clean driving record. Companies may also offer accident forgiveness and have the ability to remove previous accidents from your driving record. Each auto insurance company will hold its own set of policies and conditions when it comes to evaluating the percentage of increase in premium rates. While you may not be able to do anything to prevent the increase, you can always contact an insurance agent or obtain free car insurance quotes from other companies to find more reasonable rates.