What Determines Increases in Your Car Insurance Policy?

As a driver, it isn’t unusual to worry whether filing a claim after an accident, no matter how minor or severe, will make your insurance rate skyrocket. This concern can be so great that many motorists will not file a claim or even inform their insurance company of the accident.

The truth is, there are many factors your insurance company will take into consideration before changes to your rate are made. To ease the tension and help you make the right decisions, the insurance professionals at Shepard Walton King have a list of four factors that determine whether or not your policy will change.

Accident Severity

In the eyes of an insurance company, no two accidents are the same. A deer running onto the road and causing damage to your vehicle is significantly different than an at-fault accident. The seriousness of a wreck, along with the cost of the claim, is generally the most important factor in determining whether your rate increases or not.

Your Driving Record

If you haven’t had an accident in several years and have constantly shown that you’re a safe driver, a minor one may not have any effect on your insurance rate. The truth is, safe drivers save insurance companies large sums of money per year, whereas high-risk drivers may see a significant spike in their rates for a minor fender-bender.

The Blame

If you were not at fault in your accident, you probably won’t see your insurance rates increase. However, if the car wreck is proven to have occurred as a result of your negligence, your insurer may see fit to increase your policy rate. Be advised, for more serious faults such as driving recklessly or intoxicated, your insurance company may choose to drop you from their protection immediately.

Policy Details

In recent years, insurance companies will offer “accident forgiveness” for small claims. This often allows motorists a chance to file one to several small claims without seeing their rates increase. To make sure this feature corresponds with your policy, or to stay up-to-date with your policy’s details, always check with your insurance provider.

Let Us Help

Insurers take many factors into consideration before making decisions about your insurance rate and policy. While dealing with this can be overwhelming, know that Shepard Walton King is here to help. Let our insurance professionals help you find the policy that best fits your needs as a driver. For more information about our services, contact any one of our locations today.