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What will happen to my insurance rates after an accident?

Car accidents are the worst and if you don't have insurance it can be a living nightmare. But if you do, then that's definitely helpful for you during your situation however, after it can end up becoming a pain. You see, once you get into an accident and file a claim with your insurance: your insurance rates go up.

You may be asking, "But, why?" Well, once you are in an accident, the insurance company views you as a risky driver. So, in a way to build trust with you behind the wheel and to keep you from being too reckless they raise your premiums. Your premium definitely raises when you are at-fault. In Georgia for instance, the average car insurance rate increase after one at-fault accident is 41%. If you're not at-fault, whether or not your premiums are raised depends on both your insurance company and what

state you live in.

Don't worry, your premiums won't cost more forever. These "subcharges" will be active between 3-5 years depending on the state you live in. After that your premiums will go back down. Some insurance companies will have your premiums decrease over time during the 3-5 year timeframe.

If you need help lowering your car insurance after an accident, you can:

  • Improve your credit score. Even though car accidents don't affect your credit rating, your credit rating will affect your car insurance rates. Taking care of debts and improving your score can help lower your rates.

  • Pay a higher deductible. The more you pay on your deductible, the less you have to pay on your premium, just make sure you can cover more out-of-pocket expenses.

  • Avoid filing more claims. Anything you can take care of yourself, leave the filing paperwork out of it.

  • Switch to another insurance company. It's always good to know your options and compare rates from different companies.

  • Get another car. The more expensive the car, the higher the rates. Having a cheaper car helps with having a cheaper premium.

A preventative measure is signing up for accident forgiveness with your car insurance company. Accident forgiveness is when your insurance company forgives your first at-fault accident and they do not raise your premium because of it. The eligibility and specific details of accident forgiveness varies among different insurance companies. Some companies allow you to sign up for it right away while others make you wait until you are a policyholder for a certain amount of time. Some companies will forgive an at-

fault accident every 3-4 years, some every 6 years, and others will only forgive that first one. So, it's good to do your research and know your options with different companies about accident forgiveness.

If you, or someone you know have been involved in an auto accident, call Your Accident Your Money at (888) 766-6398

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