Have you lately met with an accident? Has the premium of your automobile insurance suddenly shot up and you do not understand why? Then read on, as the answer lies here.
The first thing that you need to do is go through your auto insurance policy very carefully. Not everyone likes an increase in the auto insurance premiums.
Most of your common questions like how to prevent any pronounced increase in your premiums will be answered by reading the policy document. This condition depends on a lot of factors like your lifestyle, the company’s protocols and the way they vary their prices.
Whether the accident was your fault or someone else’s?
What if the accident was not your fault? If the accident was caused by the driver of the other vehicle, the insurance company of his or her vehicle will pay for the damage done to your vehicle.
All you need to do is provide them with the police report of the mishap. After evidence based investigation which proves the other driver to be liable for the accident, you shall be safe from any liabilities.
Many states have rules that might secure you from paying any extra price. Many a times, even if you were not behind the wheel during an accident, your premium may increase considering your driving record. If you have been involved in accidents previously (within the span of last three years), then you might have to pay higher premiums.
If the accident was your fault, it is your insurance company that will decide how much to charge you every month for your coverage. Even if you were responsible for the 50% of the damage done to the other person’s car or else entirely responsible, you will be charged the same. Some insurance companies offer stratagems that only hike up your premium by 40%, whereas others might design a protocol and charge you based on the devised formula.
What has been your driving history like?
Each and every company thoroughly investigates your mishap. They not only check your driving history, but also contact the third party to get their part of the story. They also contact the witness, and learn more about the accident. Only once they are convinced that you were not at fault, will they cover your expenses, and not charge you with high premiums.
Was the accident of trivial nature and no one else was involved?
If the accident involved someone else but the damage caused was very less, then it is entirely the discretion of you two whether or not you want to involve your insurance companies. If you both decide to clear the matter discreetly, then you are free to do so, but you should make sure that you have a written parchment containing the signatures of both parties stating the cause of accident and how you want to settle the matter.
Now that you know what can happen once you’ve met with an accident, you must be careful while driving. Loss of life or permanent injury can be more distressful than any other thing in life.