How Vehicle Accidents Affect Your Auto Insurance Premiums

Auto insurance premiums are influenced by numerous data points about you, your vehicle and your chosen coverages. One significant factor impacting your insurance premiums is your driving history—particularly vehicle accidents.

When you’re involved in a vehicle accident, your insurer typically reviews the incident to determine fault and assess the financial impact. Insurance companies base premiums on risk; if you’ve been in an accident, especially where you were at fault, it signals to the insurer that you are a higher risk. This increased risk profile often results in higher premiums as the insurer adjusts your rates to compensate for the perceived higher likelihood of future claims. 

Each accident you file a claim for becomes part of your insurance record. Frequent claims can lead to a higher risk rating and, subsequently, higher premiums. Even if you weren’t at fault, the frequency of claims can still impact your insurance costs.

The impact on your premiums also depends on the severity of the accident. Major accidents with extensive damage or significant medical expenses may lead to more substantial premium increases than minor fender-benders.

Mitigating the Impact of Auto Accidents

Adhering to safe driving practices and avoiding accidents is the best way to keep your premiums low. Defensive driving courses can also demonstrate your commitment to safe driving, potentially earning you discounts.

Your agent can help you regularly compare insurance quotes to help you find the best rates, especially if your premiums have increased due to an accident. Different insurers have varying policies on how they handle accidents, so shopping around can be beneficial.

Contact Us

Contact GVL Insurance Company in Greenville, South Carolina, to compare personalized auto insurance quotes.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.