If you submit a claim after you were in an accident you may find that the rate on your on insurance policy will increase. The insurer does not always raise the rates after you submit your first claim, but you can expect them to raise the rates right after two or more claims that are submitted within your policy time period. Here is some important information on accident affect your insurance.
From the insurers point of view, any accident is either an at-fault or an no-at-fault. The insurers will look at some of the eligibility points from the at-fault and as a result of this, the premium you have will become higher due to the fact that you are now a risk to the insurer. Now, an at-no-fault will not count against you for any eligibility, but if you have too many it can lead to a review of your policy.
You can expect most insurers will certainty increase the amount of money you pay for auto coverage if you have many costly claims made against your policy. Insurers will want to recoup most of the expenses that was paid out for the claim, and this is always done by increasing your rates for submitting several claims.
One important thing to remember is that sometimes by submitting claims to the insurers can disqualify you from ever being able to receive a certain or specific kind of discount. There are many insurers who will offer some discounts to anyone who is free of being involved in any accidents for a certain amount of years.
So if you should file a claim because of an incident that you were involved in, then the percentage of the discount shall surely be decreased or even eliminated altogether and as a result your premium will become higher.
Another thing for you to know about this matter of how an accident can effect your coverage is the cancellation of your policy. So if the number of claims that are made to the company begins to reach a certain level, which is set by the auto insurance company, then you can expect that the policy can and will surely be cancelled.
A very important fact to remember is, whenever a person gets cancelled, that person is then seen or known as being an insurable risk for almost every insurance carrier. Also one more thing to remember is that when anyone ever gets cancelled by an insurance carrier he or she will always have a difficult time finding some coverage without ever paying a premium that will be quite high and maybe even unaffordable too
