As long as you drive, you are expected to have car insurance because no matter how good a driver you think you are, accidents do happen and it may not even be your fault. The insurance company is there to compensate the third party and you the insured in case of the occurrence of an accident; which is why it is an offense to drive without auto insurance.
If by chance or mistake you get involved in an accident; when you file for an auto accident insurance claim, your premium fee is likely going to increase. Some premium fee skyrockets to as high as 40% of the amount you were paying before the accident insurance claim. This article will explain steps before the accident to ensure that you aren’t charge a high premium after an accident and how to lower your car insurance after an accident.
4 Steps to Take Before an Accident to Reduce Your Premium
Before going into the main issue of how to reduce you car accident after an accident, I will discuss steps you can take even before the occurrence of an accident to ensure you don’t pay exorbitant premium after an accident.
- Know the Type of Car You Buy-: Some cars attract a higher insurance fee after an accident than others. For instance, a sport car will always attract a higher premium fee than a four wheel drive after an accident. Keep this factor in mind when next to go shopping for a new car.
- Check Out Discount Rates for Each Insurance Company-: Before pitching for an insurance company, check out their surcharge and discount rates in the occurrence of an accident. It will be better for you to make a list of over ten insurance companies and choose the one that offers the best discount rates on car accident premium.
- There Should Be a Forgiveness Clause-: This is an important clause that will be of great importance for your car insurance clause and only few insurance companies offer this clause. Always go for an insurance company that offer forgiveness clause. I will discuss more about this forgiveness clause later in the article.
- Go for Third Party Insurance-: On few occasions, the accident may involve a third party, or it may be a third party taking a pedestrian way; taking third party insurance will cover any third party affected in the accident.
21 Tips and Tricks to Reduce Car Insurance Cost After Accident By 57%
1. Inform Your Insurance Company Immediately After the Accident Occur-: This should be the first step to take after the occurrence of the accident. You need to call your insurance company and give them all the vital details of the accident; even if the fault of the accident wasn’t from you, still let them know. This gives them time to contact the other party for an out of court settlement when necessary or get an attorney if the matter is to be taken to court. Waiting for the insurance company to find out about the accident from another source or for the other party to call them first will increase the severance of the premium. Also, don’t take the car to a body shop or mechanic if the accident is not your fault, it may make you look guilt.
2. Ask For an Accident Forgiveness Clause-: I mentioned accident clause as one of the factors you should look out for when choosing a insurance company. If this is your first time of getting involved in an accident after long years of accident free driving, your insurance company can choose to ignore it as a mistake by offering you a forgiveness clause. Ask the insurance company for the accident forgiveness clause if the accident was the first in a long time.
3. Take Advantage of Discount Policy-: Check out for discount policies available for you in the insurance terms and take advantage of term. Two common discount terms you can take advantage of are:
- Common Insurance Discount-: If the same insurance company is handling your other insurance cover like: fire insurance, theft and robbery insurance and house insurance; then you are likely to get a discount when filing for accident claim premium.
- Secondly, most insurance companies offer discounts to long term customers who can give them the assurance that they will not drive more than ten thousand miles in a year. If you have other means of transportation available you can take this discount and maintain the ten thousand miles a year agreement.
4. Look For A New Insurance Company-: If at the end of the day, you didn’t get the result you desire, that is if your premium fee was hiked, you can opt to look for another insurance company to get your car insurance policy; but don’t make it a habit to jump from one insurance company to another because you may end up getting yourself into some serious legal trouble.
5. You Can Take Up Driving Classes-: After an accident, your car premium takes a hike. If after a long time, you can proof that you are not likely to get involved in another car accident; your car insurance can be lowered to the normal prize. For instance, if your premium rate before the accident was $100 per month and after the accident, it was increased by thirty percent making it $130 month; if you maintain a year of accident free driving, your premium will be reduce by few percents until it gets back to the normal fee in a period of three to five years. One way you can maintain this is by taking driving lessons, it can be a refresher course to keep you alert while driving and watch out for road signs.
At this stage of this write up, I have mentioned steps before you get involved in an accident cut down your premium fee, and how to lower the insurance fee after an accident. The point of looking for another insurance company should be taken as a last resort.