Will a Fender Bender Cause My Insurance to Increase?
It doesn't matter how long you have been driving, at some point you will have a minor fender bender. Even the best drivers have experienced those "oops" moments and ended up with a dented fender or bumper. Most insurance companies require that you report even the slightest fender bender even if you don't file a claim, but some people choose not to report minor accidents because they are afraid it will increase their premiums.
How Do You Know if it Will Raise Your Rates?
The problem is you won't know if it will raise your rates in most circumstances, because so many factors can come into play. If you have been with your insurance company for many years and never had a claim, it may not increase. If your policy has an "accident forgiveness" clause your rates probably will not raise.
Your insurance company will look at any previous claims and they may even check into your driving record when you turn in a minor fender bender. If it appears that you have a history of minor fender benders or traffic violations they may decide to increase your rates.
Some companies even have a set dollar amount to go by. If they have paid out X amount of dollars on insurance claims to you already, it may warrant an increase so they can attempt to recoup their money. If you have started costing them money instead of making them money then they may adjust your premium to balance it out more to their favor.
It's Important to Know Your Insurance Company's Policy
People usually ask for an insurance quote, pay the premium and never give it another thought until they need to. You should talk at length with your agent as soon as you get the policy so that you understand your coverage. You should also know how they handle such issues as minor fender benders or major accidents.
Ask the agent if they offer "accident forgiveness" or deductible pay downs for staying accident free. What do they use to decide on rate increases? Some insurance companies periodically check your credit rating to see if they should increase your premium. Even if you have never had a fender bender, or any other type of claim, they can raise your rates due to a low credit rating.
You are usually safe if someone else hits your car because it should be a "no fault" claim and the other person's insurance should pay. The problem is there are people who drive without insurance and won't be able to pay you. Your insurance will have to pick up the bill for the fender bender and it will be a pay out against your policy even if though you were not at fault.
How Do You Know if it Will Raise Your Rates?
The problem is you won't know if it will raise your rates in most circumstances, because so many factors can come into play. If you have been with your insurance company for many years and never had a claim, it may not increase. If your policy has an "accident forgiveness" clause your rates probably will not raise.
Your insurance company will look at any previous claims and they may even check into your driving record when you turn in a minor fender bender. If it appears that you have a history of minor fender benders or traffic violations they may decide to increase your rates.
Some companies even have a set dollar amount to go by. If they have paid out X amount of dollars on insurance claims to you already, it may warrant an increase so they can attempt to recoup their money. If you have started costing them money instead of making them money then they may adjust your premium to balance it out more to their favor.
It's Important to Know Your Insurance Company's Policy
People usually ask for an insurance quote, pay the premium and never give it another thought until they need to. You should talk at length with your agent as soon as you get the policy so that you understand your coverage. You should also know how they handle such issues as minor fender benders or major accidents.
Ask the agent if they offer "accident forgiveness" or deductible pay downs for staying accident free. What do they use to decide on rate increases? Some insurance companies periodically check your credit rating to see if they should increase your premium. Even if you have never had a fender bender, or any other type of claim, they can raise your rates due to a low credit rating.
You are usually safe if someone else hits your car because it should be a "no fault" claim and the other person's insurance should pay. The problem is there are people who drive without insurance and won't be able to pay you. Your insurance will have to pick up the bill for the fender bender and it will be a pay out against your policy even if though you were not at fault.
More by this contributor:
Involved in a Hit and Run-Should You File an Insurance Claim?
Car Insurance Dos and Donts Following an Accident
Comp Collision Liability: Understanding Insurance Terms
Sources:
Published by Donna Thacker - Featured Contributor in Lifestyle
Donna is an award- winning fiction author, recently published with Twin Trinity Media. While she enjoys writing fiction, Donna also has a knack for writing informative articles that show her knowledge and p... View profile
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2 Comments
Post a CommentI love your opening sentence. My older daughter (who is 29 now) had only been driving for a few weeks and I let her drive to the mall with her younger sister and friend. She ran into the back of the car in front of her at a stoplight (going less than about 10 miles an hour.) The driver of the car she hit was a 70+ year old woman who - until that moment - had never had an accident in her life. Since no one got hurt and there wasn't even any damage, it was kind of funny. We still tease my daughter about ruing that poor woman's 50 year long record!
Thanks Donna. Have a super weekend.