Okay we admit the photo is a little dramatic. They look so unhappy!
In all seriousness though, increased auto rates is a stress inducer! Hopefully this article will help you get a better understanding what to do after a car accident.
In a previous blog post we examined how a car accident can affect shopping for insurance. In this blog post we will talk about the affect that a car accident has on your existing insurance coverage.
In some states, insurance carriers offer first accident forgiveness coverage. This of course comes with an increase in premium. But in the state of California, this offering is actually illegal because it’s too difficult for insurance because of the difficulty in clearing it with the state insurance department.
Here in California, when you get into an at fault accident, there’s several things that could happen.
The insurance carrier can raise your premiums at the next renewal. They can apply this increase to a single vehicle, or straight across the entire policy.
You may be forced to increase your deductible.
The insurance carrier may offer you a new policy with their non standard market. This of course requires a cancellation of the existing policy, applying for a new policy, re-writing the policy, and finally, putting down a new down payment.
Cancellation of your policy.
Many people become frustrated when insurance carriers punish a long standing customer at first sight of an accident. But, its important to note that carriers have the right to change the terms of the policy regardless of your tenure as a customer.
Remember the 3 or 5 year lookback period we talked about in our last blog post? If you are involved in a new accident, the carrier will now re-evaluate you as a driver. This time they will look at all previous information, and add this new accident into the mix.
The insurance carrier then makes a decision as to how they want to proceed with the policy.
A quick note here: don’t take these actions against you personally. Evaluation of policy terms is something the insurance carrier must do, and they’ve hired some of the brightest minds in the world to analyze the data.
Regardless of what action is taken by the carrier, you do have options. You are not required to continue giving them your hard earned dollars. There are many other carriers out there that would love the opportunity to compete for your business.
That’s where we come in. With access to over 30 carriers, we are in a great position to find you the best deal for your hard earned dollars. We take all of the work out of your hands, because you have other things to worry about.
Give us a call at 916-750-2489. We’re happy to help, and the process is smooth