Generally, after making a claim your car insurance premiums is expected to rise. The main reason for this is that now you have become a liability for the insurance company. They have to spend a great deal of money each time you have an accident and the insurer wants to ensure that your premiums are enough to compensate for the expenses and at the same time get profit from them.
How much your car insurance will be affected is hard to say. One of the main factors is by how many claims you have had total. If you have had an accident before your premiums will go up even more. If you have had several different accidents you are a high risk driver and will be expected to pay dearly for it.
Your insurance may also be affected by how frequently the car accidents took place. If you had two car accidents in a year, without much gap in between, your premium rates can escalate higher. Regardless of where you search for, your insurance will be influenced by your driving history in this fashion, though it is possible that you might get a better rate if you look around.
The highest premiums are saved for young male drivers. Although it is a bit of a stereotype, insurance companies have done research to find the drivers that are most likely to get into an accident. Since their driving record is fairly new, young drivers are instantly more of a liability. If they get into a car accident the premiums will skyrocket until several years afterward with having a clean record.
In certain cases your insurance may not be affected as much. This is usually if the accident was not your fault or if you have had a long standing clean record. Of course, some insurance companies will still up your rates regardless, even if the accident wasn?t your fault.
To understand how the rates are set you need to know a little about ISO symbols. ISO stands for Insurance Services Offices, Inc. and they assign every car a certain symbol or number that relates to how much the care is worth. This is what makes the insurance companies ratings fair and equal for everyone. If your ISO rating is high it means that you have an expensive vehicle and it will cost more to repair. Vehicles that cost more to repair are required to have higher premiums. If you get into an accident your premiums will go up relative to what your ISO rating is as well.
Your car insurance will not be taken away after an accident, but it may go up so high that you will have to cancel it. Don?t worry, even if you cancel your insurance after an accident the insurance will still have to cover your claim. The exact time of the accident is very important. If your accident occurred even a minute after your insurance expired, you will have to pay the damages yourself.
By now, you know how significantly the claims influence your premiums. Therefore you must avoid filing unnecessary claims for petite accidents; otherwise your insurance premiums may shoot up considerably. If the damage caused in an accident is less than $750 dollars, then it is suggested that you avoid filing a claim. If you get involved in another accident in the same year, then too you may choose to avoid filing for claim.
Graham McKenzie is the content syndication coordinator for Carinsurancesa.co.za. South Arica?s leading car insurance portal.
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