- At Globe Live Media we explain how much your car insurance can increase if you have an accident in the US, and what you can do to reduce the costs of your policy in the event that you have had a mishap while driving
Any accident you have in your car implies an increase in your vehicle insurance premiums, as insurance companies will want to recover any expenses incurred in repairs and it is generally believed that if you were involved in an accident, it is likely that you will return to be in the future.
This increase can be up to 46% of the cost of your auto insurance policy on average, according to Value Penguin, an insurance specialist portal. However, according to calculations carried out by NerdWallet, the increase in your car insurance premiums, after an accident, could be more than 51%.
The percentage of insurance increase after an accident is determined by the type of accident that occurred. Specifically, insurance companies often review whether the accident was your fault or the fault of another driver.
In the event that the accident did not occur through your fault, it is possible that there is still an increase in your insurance, but to a lesser extent.
Data compiled by Value Penguin indicates that in the state of Michigan, an accident generates increases of more than double the annual cost of auto insurance. In the state of Kansas, an accident, however, only generally increases the insurance policy by 8%.
For its part, data from NerdWallet indicates that car drivers with accidents in their driving history pay an average of $832 more dollars per year than drivers without accidents in their driving history.
What are the insurance companies with the cheapest post-accident car insurance prices?
Of the four largest insurers in the United States, including State Farm, Geico, Progressive and Allstate, the State Farm company is the insurance company with the cheapest auto insurance premiums for drivers who have been in an accident . According to NerdWallet, a State Farm policy can increase from $1,381 to $1,794 due to an accident.
For its part, a Geico policy can increase from $1,238 (before an accident) to $2,004 after an accident.
Progressive’s policy can go from $1,739 prior to an accident to $2,765 after an accident.
Finally, Allstate’s insurance policy can cost, on average, $1,994 dollars, and can increase to $2,982 dollars after an accident.
How can I lower the cost of my auto insurance after an accident?
There are certain tactics that you can apply to reduce the costs of your policy even if you have had an accident, which will allow you to keep it in an affordable range:
1) Raise your deductible: Although this will increase the costs you must assume for repairs to your car in the event of an accident, it will also make your policy cheaper. Remember that you must review, conscientiously, which is the deductible that suits you best depending on the area through which you travel.
2) Look for discounts: implementing strategies such as lowering your mileage or requesting multi-vehicle discounts can lower the costs of your car insurance, even if you have had an accident.
3) Improve your credit score: If you have a better credit score, this will result in insurance companies offering you cheaper car insurance. This strategy, believe it or not, does not require too much time. You can start improving your credit score right now.