New Driver Car Insurance Gilbert Arizona AZ
Filed under: Cheap SR-22 insurance, Cheapest SR22 insurance
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.
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