Accidents Affecting Online Insurance Rates
vehicle accidents are an unfortunate occurrence and the reason why many people choose to purchase car insurance. Being involved in a collision with another vehicle, however, can sometimes affect the price a person pays for coverage. Although it is not uncommon to see an accident affecting premiums rates, there are still many specific details which govern exactly how accidents affect vehicle insurance rates and why. After being involved in a collision one’s coverage provider typically looks at a series of details to determine whether a motorist’s rates should be increased. If the driver involved has an excellent record with a minimal number of incidences, then there is little chance that prices will be increased. If a person has a long history of traffic collisions, then there is a good chance that rates will be altered.
The first point that is usually taken into consideration is whether or not the policyholder is at fault. A motorist that causes an accident is likely to see an alteration in their premium that is often based off of a predetermined amount. When a consumer purchases a policy there are typically underwriting guidelines in place which dictate exactly how much the motorist’s policy will increase as a result of causing a loss. Other details, however, can increase this amount even further. If a vehicle owner causes a collision as a result of being under the influence then they could expect more than a simple rate increase. Such an incident is considered to be a major violation and the driver in question is likely to receive a DUI or even criminal prosecution.