Reader’s Question:
I’m proud of having a perfect driving record for 20 years. Last winter, on my way to work, I hit black ice, and my car overturned in the ditch – my car was a total loss. Luckily, I didn’t get any injuries or property damage, just a totaled car from the crash. Was it valid for a car insurance company to increase premiums for a single accident? I’ve been with the same insurance company in Oshkosh, WI with no previous claims in the past 10+ years.
Gregory
Oshkosh, WI
It depends on your state and the terms of your policy. Some insurance carriers “forgive” the first accident after you’ve been with the same company for more than 3 or 5 years. While some have first accident forgiveness of up to a certain amount like up to $10,000 or above, but is chargeable. There are insurance companies that don’t have such so the best way to find out is to ask your insurance agent in Oshkosh WI.
When I totaled my car at 16, my premium rates went up , but over 10 years later when I got into a fender bender, my car insurance rates actually went down due to the way that the auto insurance policy was written and the number of driving years I had. So I think it really depends on the insurance carrier. In most cases no, but some of them might be very strict regarding this.
For auto insurance, the easiest way to get a fantastic quote is do a rate comparison on car insurance policies in the market. Make sure that you choose similar options with the same limits, auto model, zip code, etc so that all things are an accurate comparison.