Here's Why Your Rates Go Up After An Accident

silver car crashed into the rear of a black car

Most people have probably experienced the headache that comes with paying your car insurance bill after an accident. While it varies by state and company, insurance premiums can increase anywhere from 5 to 35% as a result of a crash. Your rates typically increase after accidents determined to be your fault or if you’re a repeat offender.

Why Does This Happen?

Insurance companies have a vested interest in safe drivers. That’s why many offer accident forgiveness or safe driver discounts. Being in an accident, especially one that is your fault, signals to your insurance company that you may be an unsafe driver. Raising the premium is done in hopes that these dangerous behaviors are corrected.

This is commonly referred to as a “carrot and stick” approach. People are inherently motivated by two things: rewards and punishments. The promise of receiving a penalty by your insurance company is expected to encourage safer driving.

How to Reduce Insurance Costs Over Time

Although not every accident will result in a higher premium, there are some steps you can take to reduce these rates over time. Here is what the Insurance Information Institute recommends:

  • If you are not currently under one, ask your insurer about any accident forgiveness or safe driver policies.
  • Increase your deductible - on average, this could save you up to 40%.
  • Shop around for another provider and compare prices.
  • Research other discounts that may be available. Many insurance providers offer discounts to students, people with good credit, and long-time customers.

These are only a few of the things you can do to work on reducing your insurance costs over time. However, one of the best ways to ensure that your insurance doesn’t increase is to practice safe driving and avoid accidents.

Stay Protected - Call Our Mississippi Personal Injury Attorneys

Vollor Law Firm, P.A. works with drivers to ensure that they are protected from other motorists’ negligence. If you or a loved one have been injured in a car accident and are struggling to pay, contact our office by calling (662) 269-6188 to schedule a free consultation. Our attorneys will work with you to achieve maximum compensation.