How Much Increase in Car Insurance Rate if I Get Involved in an Accident?
Reader’s Question:
I’m a new driver in Gilbert, Arizona and I’m doing my best to maintain a clean driving record. I know my rate will go up if I had an accident. Do you have an idea how much increase I would have on my premiums if I am involved in an accident?
Cathy
Gilbert, AZ
Every auto insurance company has different policies when it comes to increasing their rates. Majority of the car insurance companies would increase your rate after one instance of a vehicular accident however there are some or I would say few who would “forgive” you and would not demand for an increase on your premium.
In general, auto insurance companies follow the standards set by Insurance Services Office (ISO) when it comes to increasing an insured driver’s rate after an accident. It is an increase of 40% of the company’s base rate. You should remember it’s based on your car insurance company rate NOT your current rate. So what is your company’s base rate? It is the average amount of claims paid by your company plus the company’s processing fee for the claims.
Let’s take for example your premium before the accident is $400. And your company’s base rate is $500. Forty percent of $500 is $200. So your new premium is $600.
This is only the general rule for a rate increase after one accident. Always check with you insurance agent in Gilbert, Arizona or surf the Internet to get more information.
How Many Points Does it Take Before my Insurer Increase my Car Insurance Rate?
Reader’s Question:
How many points does it take to make your car insurance go up in the Westbrook, Maine? My cousin just got a speeding ticket that is worth four points. How much will his insurance go up and for how long will this be on his record?
Becky
Westbrook, ME
For some states, there is no set amount of driver license points that make all insurance providers increase their premiums for their policyholders. Insurance carriers typically licensed to do business within a state set their own rating system. This means the four point offense could mean different rate increases for various insurance carriers in Westbrook Maine.
The Maine Bureau of Insurance states that drivers with violations are considered higher risks to insurance providers and may be charged higher auto insurance premiums. To distribute the cost of auto insurance among the insured as fairly as possible surcharges are used. In Maine, a surcharge may be added to the insurance premium of a motorist who is convicted of a moving violation. The amount of the surcharge is a percentage of the policyholders renewal premium and applies usually for up to three policy renewal periods.
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