Understanding the aftermath car insurance increases post-accident

Car accidents happen as even though you are a good driver you cannot take charge of how others drive or ride on the roads. Irrespective of your good driving skills you might end up in an incident where the biker or car driver suddenly appears out of nowhere and bump your vehicle. When this happens, it is a bad day and we hope this does not happen to you. However, if any of this happens the following article helps you understand the aftermath of four-wheeler insurance and its effects post-accident.

Accidents and four-wheeler insurance

Car accidents are one of the primary reasons that affect a spike in car insurance quotes after the accident. This happens when the policyholder raises a claim after the accident. Additionally, if a policyholder has a constant history of raising a four-wheeler insurance claim then your car insurance quote after an accident will shoot up. However, if a policyholder is involved in a car accident but he/she does not raise a claim then the four-wheeler insurance premium is unlikely to spike unless the policyholder is in a situation where he/she is asked by the insurance providing company to check the car before insuring it further.

How much does insurance increase after an accident?

Four-wheeler insurance and risk are directly related to each other i.e. higher the risk higher the four-wheeler insurance premium. The risk associated are covered with your car in exchange for the premium amount paid by the policyholder. So, if a particular policyholder has a history of raising claims then he/she shall be considered a risky profile customer and charged more four-wheeler insurance premium.

How much does insurance go up after an accident?

The following are the reasons for the increase in car insurance quotes after an accident:

1. Premium loading:

In case regular car insurance claims are raised then you will be subject to premium loading i.e. an additional premium is charged to you. This happens only if you have a history of making repeated four-wheeler insurance claims. The premium loading depends on factors like the Insured Declared Value of the vehicle, the type of insurance claim, the condition of the vehicle, and the claim settlement amount paid. Usually, the premium loading ranges between 10 to 15 per cent of the previous policy premium amount.

2. No claim bonus:

No claim bonus is offered to policyholders who have not raised a four-wheeler insurance claim in the previous year. However, the moment you raise an accident claim you shall miss out on receiving the no-claim bonus. The no-claim bonus is like a discount on the four-wheeler insurance policy and it increases if no claim has been raised for 5 years.

The final note

While it is difficult to pinpoint the exact increase in the four-wheeler insurance premium amount post-accident it depends on numerous factors mentioned above. However, avoiding raising claims, No Claim Bonus Protect Add-on, installing an anti-theft device in the car, and voluntary deductibles are certain ways to lower car insurance premiums.

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