Many people believe that just because you have an accident, at fault or not, your rate will rise. Because of this many will avoid filing a claim.
Does your insurance rate always go up – what is the truth?
There are many things to consider and no, a rise in premiums isn’t always the case
What is factored into the decision by your insurer as to if your premium will increase due to an accident?
It is important to know what is in your policy before an accident ever occurs. Once an incident happens it is too late to modify anything and you are locked into your current coverage levels.
No two accidents are ever the same. Because of this, there is no standard formula. The monetary claim amount is one of the biggest factors that comes into play. There is a large gap in the difference between a fender bender and another totaled vehicle both in payment and severity.
Were you charged with reckless driving and or found at fault?
If you were the cause of the accident, your monthly insurance rate is more likely to go up than if the other party was to blame. If you were found to be driving recklessly you may receive a cancellation of your policy altogether, the reason being you are now be considered a bad insurance risk.
Do you have any prior accidents or tickets? – Insurance is all about risk assessment. If you have a safe driving record, you are a better risk. That means you get a lower premium. They will factor in length of time from the last ticket, from last accident, and overall record. Customers who have been with them for a number of years do also tend to get special treatment because loyalty deserves a reward.
We live in a no-fault state – No matter who is found at fault, in a no-fault state your own insurance company is likely to pay some of the claim.This makes the likelihood of your rate rising a more likely outcome than it would in other states with different rules.
Always choose accident forgiveness – Check with your agent to see if this option is available and make sure to read the details as it is defined differently for each and every company. This policy option can be a golden ticket if you do have to file a claim.
With over 15 years’ experience in the industry, they are able to do the legwork for you and eliminate the need for guessing. Centennial Insurance Services is an independent agency which is able to assist with all of your insurance needs be it personal or business. Give us a call today 239-247-5125 in Fort Myers or visit www.cisinsfl.com for your free no obligation customized quote.
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