6 Tips for Lowering Your Car Insurance Rates After an Accident

When people have an accident, three things come to mind. The first is to make sure that everyone is okay. The next one is to survey the damage to the cars and surrounding property. Finally, the concerns set in about what this accident will do to the insurance rates. For some people, the last one is thought of first.

The real problem is how to get the insurance premiums to go back down after an accident.

There is no magic formula to cause high insurance rates to drop quickly. However, there are some steps that a driver can take to lower the rates. Some of the reduction may happen now and with work, the rates can continue to be decreased over time.

If your insurance company cancels you, shop hard for the lowest rates available.

When you have to buy high-risk auto insurance, none of the rates are going to be pleasant to hear or to pay. By enlisting the help of several brokers, you can receive numerous rates and types of coverage to choose from for your new policy. Although time is important, you need to spend enough time to find the best package to fit your needs.

Change your coverage to lower your premiums.

Whether you are canceled or just shifted to higher premiums by your current company, changing the amount of coverage can make a serious difference in your insurance cost after an accident. If your car has a loan against it, you can raise your deductible by a considerable amount to lower your premium. Many agents try to move their customers into a higher coverage level for liability maximums. Seek to lower these to the legal minimum. These two moves can save you hundreds per year on high-risk insurance.

Cancel your comprehensive coverage for a while.

There is no legal or lender requirement to carry optional insurance coverages. One of the more expensive of these is the comprehensive part of the policy. You will lose some important areas of coverage, but if you must save money, this may be necessary. Try canceling the towing and road hazard insurance along with the comprehensive. These last two options rarely pay for themselves. Getting rid of them can be a good plan even if you have not had an accident.

Do not report small accidents that are not required to be reported by law.

Not every accident has to be reported to the state or the insurance company. Every state has a legal limit for the dollar amount of damage when an accident must be reported. If your wreck is minor enough that you can afford to absorb the loss without a claim, it can be in your best financial interest to do so. Spending a few dollars out of your pocket now can save you thousands over next few years.

Consider changing companies even if you are not canceled.

Depending on the type and size of the accident claim, one accident may not prevent you from getting coverage from another insurer that is not high-risk. Not all companies will penalize you in the same way for only one accident. This is especially true if the accident was not your fault even if your company had to pay for the damage to your car. Just changing companies can save you hundreds of dollars per year. Even if you do not find any real savings, it does not cost you anything but a little time to look around.