Lowering Your Insurance after an Accident
After making claim on your auto policy after an accident, you may wonder whether it is possible to lower your car insurance premiums. In most cases, the rates for coverage usually go up even when you were not responsible for the crash. The insurance company now considered you a higher-risk client. Statistics indicated that drivers who get into an accident are more likely to be involved in a subsequent one. Therefore, insurers increase your rates to cover the increased costs. However, you can use the following strategies to lower your insurance rates after an accident:
- Seek Coverage from Another Insurer
On average, the annual auto insurance increases by $767 after an accident. This is about a 50% increase, which will remain on your records for the next five years, amounting to $2000 in additional insurance expenses during that period. When you switch insurers after an accident, you will likely find a better price or get discounted prices. You can also get prices from other auto insurance companies at least once a year to see where you can save, even when you had a claim in the past 12 months.
- Update Your Coverage
You can save money by changing the terms and limits of the policy after an accident. For instance, you can lower your monthly insurance premium payment simply by increasing your deductible. In addition, you can decrease your liability coverage by carrying at least the state minimum required amount. However, make sure not to cut your coverage too much to be left with significant out-of-pocket costs if you cause an accident.
Another way of lowering your payments is dropping the optional policy if you have comprehensive coverage on your vehicle. For instance, you can discontinue the optional coverage temporarily for about 6 – 12 months. During this period, comprehensive coverage will pay for the cost of non-collision damage to your vehicle, including fire, flood, and theft. However, you may require having this kind of policy if you finance by or lease your vehicle.
- Go to Driving School
You can earn discounts from an insurance company by completing driver education or a defensive driving course. With many of the classes available online, you can easily take advantage of this opportunity. Through defensive driving classes, you will learn about ways to avoid accidents, road safety techniques, and traffic laws. If you are a parent, you can save 10 – 20% on auto insurance premiums when teenagers or youths on the policy take these classes.
- Shop Around for Discount Programs
Looking around for discount programs will surely lower your payments. Common discounts include safe driving, membership, defensive driver education, safety, and anti-theft, upfront and auto-payment, paperless billing, and multiple policies.
- Request Forgiveness
If you are not enrolled in a forgiveness program with your insurer, you may consider doing so after an accident. By doing so, you may become eligible to avoid a rate increase if you have not been involved in an accident in the past three to five years or if this was your first accident claim.
- Work to Improve Your Credit
Check whether you have below-average credit and start working on it. A low credit score attracts higher insurance rates as the insurer associated it with a higher risk of claims. You can improve your credit score by paying bills or time, reducing your debt amount, avoiding new debts, and more.
Get More Tips from Jeff Johnson Insurance Agency
Jeff Johnson Insurance Agency offers competitive automotive insurance packages in Des Moines, Waukee, and the rest of central Iowa. If you are looking for ways to lower your insurance after an accident, Jeff and Dan are available to guide you through the options. You will get all the help you need to find the best possible price while saving you time and money. Call today at 515-987-6993 or request a quote click here now.
