How Different Types of Accidents and Violations Affect Car Insurance

How Different Types of Accidents and Violations Affect Car Insurance

Not all accidents are created equal. Similarly, the type of car accident that a driver is involved in can significantly impact the nature of their current car insurance policy as well as any future car insurance quotes. This is because all companies take certain accidents and violations more seriously than others, and depending on the totality of the circumstances, insurance rates can be significantly impacted. For drivers, the ideal situation is to avoid any violation or accident if at all possible, but this is an unlikely scenario. Rather, it is more important to be aware of what situations will lead to the most significant change in car insurance quotes.

The first type of situation a client can find themselves in is having a large number of violations - typically for speeding. A periodic speeding ticket will likely not result in an increase to insurance rates, or trouble obtaining new rates when the time comes to switch companies, but multiple infractions can have an affect. If the number of tickets grows to the point that a driver's license is suspended or cancelled, they will represent a liability to the company, and their rates will raise accordingly. Similarly, if a driver receives multiple tickets for driving carelessly or recklessly, even if an accident is not the end result, their insurance rates may rise.

When it comes to accidents, insurance companies are on the lookout for a number of things. First, was it reckless driving on the part of their insured that led to the crash? Was it actually their insured driving, or did the policyholder allow someone who was not listed on the policy to drive the car? If the answer is "yes" to either of these questions, rates will be raised. Companies will also look at other factors that led to the crash, especially things like alcohol consumption or non-payment of premiums. If a driver is involved in a collision where they are intoxicated or they are uninsured, not only will the policy likely be null and void, but the infraction will go onto permanent records, and will be easily accessible by any future insurance company, making obtaining car insurance, let alone reasonable rates, a challenge unto itself.

When it comes to accidents and violations, there are some things that insurance companies simply consider to be the cost of driving. However, anything that places the company in a position where their driver is guilty of criminal action or has not paid their premiums in full will relieve them of any obligation to pay for damages, and will result in possible insurance loss. This will undoubtedly make finding a new insurance quote difficult if not impossible.