How a Car Accident Could Affect Your Insurance

Posted on: February 14, 2018 by Fieldale Insurance Agents

Accidents often happen without warning, so it is important to stay informed of how it could affect your insurance plan. All insurance companies value safe drivers, and getting into car accidents will directly impact your insurance rates. An individual’s driving history is used to determine if a coverage cost increase is needed, as statistics show that getting into one accident means you are more likely to get in another. Virginia Automobile Insurance was put into place to provide you with excellent, affordable insurance protection in case you are hit by someone who isn’t properly insured, but make sure you know how your policy could be altered following an accident.

Who’s At Fault?

If the accident was caused by the opposing vehicle, then it is likely your payments will not be affected. Your premium is likely to increase if the accident is your fault due to the simple fact that accidents obviously come with a cost, and you are now considered to pose more of a risk. Keep in mind that if your car was the only vehicle involved, such as if you crash into a tree or a building, then it would still considered an at-fault accident. Also, your insurance rates may go up even if you aren’t the one operating the vehicle because your insurer is the one paying for repairs. As a general rule of thumb, you will typically be responsible for anything done in your vehicle.

Accident Severity

First and foremost, we can only hope that everyone involved has little to no injury. It is known the range of damage can vary immensely, from a scratch to a totaled car. The severity of the accident will relate to the surcharge. Generally, higher damage amounts will lead to a greater rate hike to cover the larger payout.

Always Report Accidents

The other driver may sue you later on, so failure to report any given accident could bring up big issues in the long run. If the other driver sues you, failure to report the accident deprives you of investigation time to prepare for your defense. It is better to be safe than sorry and report even a small fender bender so you won’t be stuck with legal bills or judgments in the plaintiff’s favor.

How Safety Pays Off

If the accident is not your fault, or this is your first time being involved in an accident, then it is possible that your coverage will not change. This is when having an excellent driving record is beneficial to your wallet. Safe drivers are valuable to insurers. A long history of safe driving equals fewer hikes in your premiums.

About Fieldale Insurance Agency

At Fieldale Insurance Agency, we specialize in protecting homeowners and their assets throughout Virginia. Our coverages can be custom-tailored to meet your specific needs and give you peace of mind. For more information about our products and to learn how we can assist you, contact our experts today at one of our two locations:

Fieldale (276) 673-6701

Martinsville (276) 632-3451

Posted in: Auto Insurance blog

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