Car Accidents and the Cost of High Risk Insurance
Auto insurance prices are based on the possibility that a vehicle owner will file a claim. Consequently, being involved in an automobile accident can have a negative impact on coverage costs, depending on the nature and severity of the collision. If a driver is not at-fault for the incident, there is a small chance that the policyholder’s premium will increase. However, if the motorist is at-fault for any damages, or are incident is coupled with a moving violation, there is a good chance that the offending driver will encounter higher rates and enter the non-standard market.
Because coverage costs have a lot to do with the motorist’s risk of filing a claim, the prices can be significant. If a vehicle owner has a poor driving record with numerous collisions and moving violations, insurers may believe that the driver has a good chance of filing another claim in the future. To compensate for these potential costs, policy providers may deny motorist vehicle coverage or charge more for any services.
Immediately after an automobile accident, there is a chance that a motorist’s premium may increase. Often insurers have a set surcharge that may be applied to a policy after a “surchargeable” event takes places, which usually includes traffic citations or at-fault damages. If a premium becomes unmanageable, vehicle owners are encouraged to shop around for a cheaper alternative.
High-Risk Car Insurance after an Accident
If a motorist is involved in multiple accidents, they may be considered a high-risk driver and have difficulty locating affordable auto protection. Luckily, nonstandard drivers may be able to find affordable options by making the effort to shop around. All insurers interpret risk differently, and some companies find it profitable to insure higher risk drivers. Although these policies may be more costly than a preferred or standard plan, they can help motorists meet state liability requirements to legally drive.
Drivers should begin their search by comparing quotes from as many sources as possible. One of the more efficient ways of doing this is by shopping online. The internet can produce dozens of estimates from one website, allowing drivers to quickly evaluate their options.
If filing a claim leads to a motorist becoming a high risk driver, they may be unable to find adequate coverage on the volunteer market. If this happens, drivers can usually find vehicle coverage through an assigned risk program. Many states have adopted programs that assign motorists insurers until they can find auto protection themselves. For example, with the Massachusetts Auto Insurance Plan (MAIP) a high-risk driver could meet state coverage requirements despite having a poor driving record.