Many people wonder if their insurance rate is going to go up immediately after an accident or after they file a claim with their insurance company. No two cases are alike, but your auto insurance rate will not automatically go up. There are many factors that could contribute to an increase in your insurance costs.
It is a common myth that increased insurance rates are “automatic.” Because many people are under the impression that their rates will increase, they do not file claims or report their car accidents. Under no circumstances should you fail to report a claim. If you do not report your accident, you run the risk of not being compensated and having to pay out of pocket for damage.
One of the major factors that plays into an increased insurance rate is liability. If, after a car accident, you are determined the at-fault party then there is a chance that your rates will increase. This is because you are seen as a greater accident risk. The severity of the auto accident can also play a role. For example, a dent in the hood of a vehicle is not as severe as the damage from a rollover accident.
Insurance companies will also take your driving history into account. If you have a history of safe driving, then you may qualify for some sort of “accident forgiveness” that prevents your insurance rate from increasing. If you have accidents or other spots on your record, then there may be a greater risk that your rate goes up.
If your insurance company has notified you that your rates are being increased and you disagree, then you may be able to contest this with the help of the Las Vegas car accident attorneys at our firm. Contact Shook & Stone today for answers to more questions about car accidents, liability and insurance rates.