How accidents can affect your rate
Every driver — even really good ones — can
have a bad day on the road. Whether you miss that speed bump or
collide with another car, by definition, accidents are never
intentional. But unintentional doesn’t mean
“not responsible.” And in some circumstances,
a collision can result in higher insurance premiums. Someone is to blame
In the eyes of insurance companies, there is always someone at
fault in a car accident — even if there was nothing you
could have done to prevent it and the police haven’t
charged you with an offence.
- If you’re the sole driver, you are
automatically at fault if you file a claim with your insurance
company.
- If you are in a collision with another driver,
the question of fault can get tricky. If the police are called,
they will usually determine who is at fault based on regional rules
of the road. Sometimes the decision is cut and dry.
- If you rear-end someone, you’re at fault.
- If you make a lane change and sideswipe someone in your blind
spot, you’re at fault.
- On occasion, it may take time and further police and/or insurer
investigation to determine who ultimately caused the accident.
In any event, being responsible for an accident could be grounds
for an increase in your auto insurance premiums.
When you’re at fault
If you have an at-fault accident on your record, it stays with you
for 6 to 10 years. Since your insurance premiums may be affected,
you could be paying for that accident for years until it is off
your record and your rate decreases.
Accident forgiveness (not forget-ness) may apply
Most insurance companies offer a service known as accident
forgiveness.
- Forgiven — If you have been with the
company for a specified amount of time and you have a clean driving
record (meaning you have no accidents or tickets), then you may
qualify to have your first at-fault accident
“forgiven.” This means your rate may only go
up by a small amount.
- But not forgotten — If you have a
second accident, expect to pay the price.
How your insurance company can help
Even if an accident is the cause of an increase in your insurance
premiums, your insurance company will work with you to help keep
your premiums manageable. Ask about discounts you may be eligible
for and smart tips on reducing your premium.
| 
