After you file a claim, your car insurance premium is normally expected to get higher. This is so because the car insurance company now considers you as a liability. They have to compensate for the loss whenever you get involved in an accident, therefore they raise the premium rate to ensure that it covers all the expenses and gets profit for them.
How much your car insurance will be affected is hard to say. One of the main factors is by how many claims you have had total. If you have had an accident before your premiums will go up even more. If you have had several different accidents you are a high risk driver and will be expected to pay dearly for it.
Your insurance premiums are also influenced by how frequently you get involved in accidents. In case you get involved into car accidents twice in a year then your car premiums are expected to rise considerably. Regardless of which company you apply for, you premiums will be influenced in a similar manner by your driving history, though you may shop around and get a better premium deal.
The insurance companies save the highest premiums for young drivers. According to a research done by the insurance companies, it has been proved that the young male drivers are more prone to accidents. These drivers have new driving records and hence are considered a burden by the insurance companies. If such drivers face accidents then their premiums will shoot up and remains so till they create a good driving record of many years.
At times, your premiums may not be very much affected. This happens only when the fault was not on your side or when you have had a really good driving record of many years. However there are some insurance companies which may still escalate your rate despite of this.
To know the process of rating cars, you must know a few things regarding the ISO symbols. ISO is the short form of Insurance Services Offices, Inc. and their duty is to assign a certain mark or number to every car. This symbol tells about the worth of the car. This system makes the insurance companies assign just rates for everyone. If you have a high ISO rating then it implies that you vehicle worth more and its fixing costs would be high too. Cars that take more money to get fixed generally have higher premium rates. Regardless of what your ISO rating is, your premiums will escalate if you get involved in an accident.
Your car insurance will of course not be cancelled after accident, but it may increase so much that you may have to terminate it. Even though you call off your insurance after an accident, you will receive the full coverage of your claim. Remember that the accurate time of accident is extremely essential. If the accident took place even after a minute of the expiry of your plan, your claim will become void and you?ll have to bear the costs yourself.
Now you know how much your claims influence your premium rates. You may thus find it needless to file claims for light accidents, to avoid paying higher premiums in future. It is recommended that you avoid filing a claim if the expenses are below $750 dollars. You may even avoid claiming for insurance second time if you face another accident on your driving record in one year.
How much your car insurance will be affected is hard to say. One of the main factors is by how many claims you have had total. If you have had an accident before your premiums will go up even more. If you have had several different accidents you are a high risk driver and will be expected to pay dearly for it.
Your insurance premiums are also influenced by how frequently you get involved in accidents. In case you get involved into car accidents twice in a year then your car premiums are expected to rise considerably. Regardless of which company you apply for, you premiums will be influenced in a similar manner by your driving history, though you may shop around and get a better premium deal.
The insurance companies save the highest premiums for young drivers. According to a research done by the insurance companies, it has been proved that the young male drivers are more prone to accidents. These drivers have new driving records and hence are considered a burden by the insurance companies. If such drivers face accidents then their premiums will shoot up and remains so till they create a good driving record of many years.
At times, your premiums may not be very much affected. This happens only when the fault was not on your side or when you have had a really good driving record of many years. However there are some insurance companies which may still escalate your rate despite of this.
To know the process of rating cars, you must know a few things regarding the ISO symbols. ISO is the short form of Insurance Services Offices, Inc. and their duty is to assign a certain mark or number to every car. This symbol tells about the worth of the car. This system makes the insurance companies assign just rates for everyone. If you have a high ISO rating then it implies that you vehicle worth more and its fixing costs would be high too. Cars that take more money to get fixed generally have higher premium rates. Regardless of what your ISO rating is, your premiums will escalate if you get involved in an accident.
Your car insurance will of course not be cancelled after accident, but it may increase so much that you may have to terminate it. Even though you call off your insurance after an accident, you will receive the full coverage of your claim. Remember that the accurate time of accident is extremely essential. If the accident took place even after a minute of the expiry of your plan, your claim will become void and you?ll have to bear the costs yourself.
Now you know how much your claims influence your premium rates. You may thus find it needless to file claims for light accidents, to avoid paying higher premiums in future. It is recommended that you avoid filing a claim if the expenses are below $750 dollars. You may even avoid claiming for insurance second time if you face another accident on your driving record in one year.
About the Author:
Graham McKenzie is the content syndication coordinator for Carinsurancesa.co.za. South Arica?s leading car insurance portal.
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