Ever paid for an increase on your insurance rates because of an accident, even if it’s not your fault? In the words of the late and great Michael Jackson, you are not alone.
Keep in mind that “fault” is determined by the authorities. You may feel that you were not at fault in an accident, or that the other driver was insane. But, the authorities make that decision, and the party that is ticketed during the incident is considered to be at fault.
Insurance companies base their premiums on risk-factor. So, even if someone rear-ends you while you’re singing along to your favorite tune, if you’ve had a speeding ticket or other violation prior to this accident, you might be deemed an at-risk driver. Each insurance company has different policies and standards, but they look at your overall tendency towards accidents.
The number of accidents you are in directly affects your premium. You could be in four no-fault accidents, and your company would still raise your rates. They feel that even though the authorities determined these accidents not to be your fault, that you must have something wrong with your driving to be having so many crashes. Are you cursed, or just accident-prone? Insurance fraud also plays a small factor in this equation. Many people “stage” accidents to obtain settlements from insurance companies. A high number of no-fault accidents might raise a red-flag with an insurance company.
We here at CWI Underwriters write auto insurance with eight “A” rated companies, which all have different ways the evaluate accidents and tickets. Give us a call! 888.636.6438
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