It may be challenging to get cheap car insurance after an accident, most especially if your auto insurance company doesn’t provide Accident Forgiveness. Fortunately, you no longer need to worry about the increased cost after a car accident – there are some things you can do to lower your car insurance rates.
One of the important factors that auto insurance companies take into account before issuing a policy is the involvement of a car owner in an accident and their risk of being in another.
If you found out there is an increase in your car insurance premium rate, it makes sense to follow these guides.
Drop Comprehensive Coverage
Definitely, one of the easiest and quickest ways to lower your price for an insurance premium is eliminating comprehensive coverage for your policy. This could leave you quite vulnerable, but it is a surefire aid to reduce your monthly premium to the cheap rate that you want. If you don’t want to lose the coverage completely, you can also lower your rate if you increase your deductible on this coverage or reduce your coverage amount.
You can always add or change it back after you have got at least six to twelve months without driving violation or another accident.
Know if the Policy has an Accident Forgiveness Clause
No matter how many levels of safety we implement, accidents still take place. They are part of life. Thankfully, some insurers understand and accept it. As such, they are willing to overlook the first accident and won’t add to your premiums.
Details of an accident forgiveness clause vary from one provider to another, though. Some automatically provide accident forgiveness, while others require you to be an accident-free policy for a span of 3 or 5 years before giving out policy option. These companies may also necessitate you to have no moving violations for 3 years straight.
Take a Driving Course
You might also consider taking a driving course after an accident. Your auto insurance company may view it in a positive way – a good sign that you are looking to enhance your skills for driving. If that happens, they may be willing to lower down your insurance rate during policy renewal time. Many courses are also available online and at affordable flat rates.
Take Advantage of Discounts
Most car insurance companies offer discounts to the policyholders – different discounts for different reasons. If you haven’t yet maximized these discounts available, then now is a great time to do so. Contact your potential insurer to know the type of discounts you may be qualified to get with your policy.
Following are a few other ways to save on your premium:
- Drop comprehensive and/or collision coverage for older vehicles
- Increase your deductible across your coverages
- Compare competitor’s pricing
- If you have been a long-time consumer
- Combine separate policies under single insurance company
Some examples of discounts you may get include low mileage, driver training, anti-theft protection device, bundling, and multi-vehicle.
Make Adjustments to your Policy
There are several things you can do to adjust your policy. First of all, you can to increase your deductible. For instance, up your deductible from $250 to $500 and reduce the cost of your auto insurance coverage levels by 15-30 percent (e.g. from $100k in coverage to $75k). If you raise your deductible to $1,000, you can save up to 40 percent and even more.
Another way is to reduce the amount of bodily injury liability or property damage liability, and you will see a nice drop on your premium.
Report the Accident
No matter how small the accident is that you are involved, tell your insurer about it. Otherwise, the insurer might refuse to uphold your policy should the other party ever come looking for reimbursement. Meaning to say, you’ll be trapped with possible legal fees and judgments involving the car accident. Those bills will probably be far higher in amount than a premium increase.
Shop Around for a New Policy
In case you are not happy with your renewal price, consider shopping around for a new auto insurance policy. But before committing, make sure to do a thorough research to land on the right option. There are many companies that offer better coverage rate, so looking for one is not a complex task at all.
You may even be surprised to find that an independent insurance agent who can get discounted quotes from several reputable insurance firms may be your best option. Since they are not tied to a specific company, insurance companies will provide more attractive rates in order to gain their customer.