Will my car insurance bill increase after an accident?

Not everyone realizes that their auto insurance premiums can go up after being in a car accident. Insurance companies provide coverage to some extent, but also aim to make money as a business. When a driver is involved in a car accident, the auto insurance company loses a lot of money in order to cover the accident. Don’t hesitate to speak to a Jackson car accident attorney about your legal options if another driver was involved in the accident.

Why do auto insurance bills go up after an accident?

As far as how auto insurance works, auto insurance is designed to cover potential damage to your vehicle. Some auto insurance coverages offer cash car accident compensation and third party liability while other policies cover natural disasters. Either way, auto insurance companies are a type of business.

That’s why when a car accident happens and the auto insurance company loses money, insurance rates can go up. Auto insurance rates may increase based on your base auto insurance premium based on state laws and insurance policies. In some cases, this increase only occurs if you were responsible for the car accident.

However, some insurance companies and states may require your insurance premiums to increase regardless of who is at fault. This means that your car insurance premiums could increase even if the other driver was entirely at fault for the accident. One of the reasons for this is that many car insurance companies perceive any driver involved in an accident as a high risk.

The increase in your auto insurance bills varies depending on the state you live in and each insurance company. Some states have laws to prevent auto insurance companies from raising base premiums if certain conditions are met. For example, some states do not allow this if you are not at fault for the accident.

Ways to lower your auto insurance bills

There are other ways to reduce or prevent your car insurance bills from increasing than avoiding car accidents. Avoiding traffic violations like speeding tickets and maintaining an overall clean driving record helps. Young drivers can be offered cheaper rates if they buy car insurance from their parents.

The type of vehicle you buy can affect the amount of your insurance bills. There are ways to calculate or estimate insurance rates for the car you are considering buying. Do not hesitate to contact the insurance company to find out about this and the discounts.

If you have any questions about the car accident, try to contact a car accident lawyer in Jackson for help. A lawyer can help you maximize your compensation for the damages you have suffered.

Jackson Motor Vehicle Accident Lawyer

Finding out that your car accident claim has been rejected can be disheartening. Contact and call the German law firm PLLC by dialing (601) 487-0555 to speak to a Mississippi multi-vehicle accident attorney for a consultation today. Our experienced legal team is ready to help you increase your chances of obtaining significant compensation for medical bills, emotional distress and lost wages. We are located in Jackson, Madison, Gulfport, Oxford and other Mississippi cities.