Will you pay for an Accident?

One of the most common questions that people have as far as the auto insurance industry is concerned has to do with rates and accidents.  Most people want to know if their auto insurance rates are going to increase due to an accident.  Even though you would think that there would be a cut and dry answer to this question, the fact of the matter is that there is not.  This all depends on your current situation, as well as the auto insurance company that you are dealing with.

Generally speaking, if you have an accident that is deemed to be your fault, your auto insurance rates are going to increase the next time that they come due.  This is just the way that the industry works, and you should expect this to happen if you have an accident that is your fault.  In addition to this, if your past driving history is not the greatest, you should definitely be aware that an accident is going to increase your rates.

On the other side of things, if you had an accident that was not your fault you should not be subject to a rate increase.  The reason for this is quite simple. When you are not at fault for an accident, your insurer does not pay for the repairs.  In turn, your rates should not rise.  If you notice that your auto insurance rates went up due to an accident that was not your fault, you should definitely ask why.  There is a good chance that you will be able to resolve this problem, and save a decent amount of money every month.

If you have an at fault accident, it will usually stay on your record for up to three years.  By law, this is how long an auto insurance company can legally charge you for an accident.  If you notice that you are still paying for an accident that happened in the past, you should look into getting this taken care of.

When it comes to how much of a rate increase to expect, it is once again difficult to say.  As a general rule of thumb your rates will probably increase anywhere from 15 to 40 percent. It all depends on what type of driver you are, as well as your past driving record.

Overall, you will probably see a rate increase if you have an at fault accident added to your record.