Your insurance premiums are calculated by comparing more than a dozen factors, and one of those factors is how much you have cost the company and how likely you may be to create other expenses. To mitigate losses, insurance companies will charge a higher rate to people who have filed claims, sometimes for several years.
Your insurance premiums may not increase right away after an accident or traffic ticket. Some insurance companies only review your driving record when you are up for renewal might not notice new points on your driving record until it comes time to purchase another policy. This could give you a few monthsâ€™ window before your rates increase, and you could avoid any increase at all by taking a one-time voluntary driver improvement course. You may also be able to lower your insurance rates may looking into discounts available based on your marital status, where you work, and how many years you attended college.
If you were the victim in the incident, your premiums should not increase. In some states, you may be partially at fault, and the amount of blame you share will determine who the case will be satisfied. In this circumstance, you may receive a partial settlement, no settlement at all, or be held liable for paying damages yourself. If you must pay damages, your insurance premiums will probably rise.
If you are dissatisfied with the amount your premiums went up after filing a claim, you may want to look around for a more appealing insurance policy. You can save time and money by shopping online and pitting major insurance companies against one another in side by side comparisons. Before you switch coverage, make sure that the new company has a sound financial rating with a company such as A.M. Best, and take a few minutes to read online reviews written by other policyholders like you.