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How An Auto Accident Affects Your Insurance Rates

November 1, 2017 Insurance accident, car accidents, insurance

You’ve probably heard somewhere that car accidents tend to increase your insurance rates. Before you start panicking after an accident you should know some of the facts. Whether or not a rate increases and how high the increase is, depends on the insurance company’s policy. There are three common factors that determine a driver’s insurance rate after an auto accident.

Your Driving History Affects Your Premium

Some insurance companies look at the driver’s past driving history to determine whether to increase a premium. With most companies, poor driving history—like having multiple traffic tickets—is likely to influence these insurance rates. Most companies that view driving history as a determining factor charge higher rates after the accident and when the driver is joining the insurance company. Over time, however, if the driver has not had anything else added to his motor vehicle record, the rate usually decreases. This is because good driving is rewarded, and the insurance company is less likely to see the driver as reckless.

Your Rate Usually Increases When You’re At-Fault

Similar to receiving traffic tickets, being at-fault in a car accident is frowned upon when it comes to receiving a good interest rate. Insurance companies look at whether or not a driver has recently caused any car accidents. At-fault accidents make drivers appear to be more of a liability, and insurance rates can be higher for this reason. Even small infractions like side-swipe accidents after not checking a blind-spot can influence with certain providers. If the driver hasn’t had an at-fault accident, or if it’s been years since they have, insurance rates usually decrease.

Your Age May Determine Your New Insurance Rate

Statistics usually show younger drivers have car accidents more frequently, and insurance companies tend to follow statistics when deciding on their next move. Many teenagers and younger adults are often distracted behind the wheel, whether the distraction arises from phone-use or from talking to other passengers. Although not all young people are careless, the data shows that people in younger age groups are likely to have at-fault accidents and therefore, the company’s risk of having to pay out money to claimants increases. As the company’s risk increases, so does the driver’s premium.

Some insurance companies look at all three of these factors to determine future insurance premiums while other companies may only have one determining factor. Companies tend to follow the data that’s in front of them, however, so the fact remains that age, driving history, and past at-fault accidents are important in determining how much a driver should be charged for coverage.

5 Most Expensive Cars To Insure

September 22, 2017 Finance, Insurance car, finances, insurance, money, vehicles

Buying a car may be one of the most expensive purchases to make in a life time, second only to buying a home. Before buying a car, it is important to do all the homework to ascertain all aspects of the vehicle you are buying. Some of the elements to look out for include availability of spare parts in case of vehicle mechanical failure, depreciation, and maintenance costs. In addition to these, you need to get a good insurance policy to cover the car in the event of an accident or vehicle mechanical failure. The following are some of the most expensive cars to insure:

Dodge GT Viper

This is a speedy car with a V-10 engine that can hit 60 mph in just three seconds. The car costs about $4,048 to insure every year. The high cost is partly caused by the fact that it is preferred by people who want move very fast. This car is said to cost over three times the cost of insuring a Honda Odyssey. Other reasons that make them expensive to insure is their vulnerability to thieves as well as the high costs to repair.

Mercedes SL65 AMG

This is among the three top most expensive cars to insure. Its annual insurance cost amounts to $3,797. Generally, cars that are cheap to repair in case of vehicle mechanical failure and have fewer claims filed by the owners cost less to insure.

Mercedes S600 BI-T

The Mercedes S600 BI-T costs $3,539 every year to insure. The insurance rates however differ from state to state. This is because each region presents different sets of challenges including terrain and climatic conditions.

Mercedes S63 AMG 4Matic

This is the fourth most expensive car to insure with its insurance premiums standing at $3,513 every year. The car has an AMG 4.0L V8 biturbo engine which produces a lot of power and is able to reach 60 mph in just 3.4 seconds.

Porsche Panamera S Executive

This is one among the most expensive Porsche models and one of the most expensive cars to insure. It costs $3,484 every year to insure. To save on insurance costs, it is advisable to get at least three quotes from different insurance service providers.

Insurance is one of the elements that stretches its costs above then original buying price. The best way to approach it is to compare the different quotations from different providers as that you get the best deal.

Sources

http://www.marketwatch.com/story/10-most-expensive-cars-to-insure-2016-02-25

https://www.daveabels.com/mechanical-failures.html

https://gearheads.org/5-most-expensive-cars-to-insure/

5 Common Causes Of Car Accidents

August 29, 2017 Finance, Insurance car accidents, cars, cleanup, finance, insurance

If you drive a car long enough, you are likely to get into an accident yourself or at least see one on the road. Accidents can range from minor fender benders that do little or nor damage to major crashes that cause serious injuries and death. To avoid car accidents, it’s important to know the common causes.

Distracted Driving

The most common cause of car accidents, at least in the U.S., is distracted driving. This has been a problem as long as cars have been around, but it’s gotten much worse over the past couple of decades with the advent of cell phones and other small wireless devices. To help lower your chances of an accident caused by distracted driving, never use a phone or other electronic device while you are driving.

Speeding

Speed limits are in place for a reason: safety. If you don’t follow the posted speed, you are more likely to cause an accident. Speed limits typically reflect the amount of traffic and hazards present. Inner-city streets with lots of car and pedestrian traffic have the lowest limits, while highways and expressways have the highest one. Following the speed limit gives you time to brake properly and react to unexpected hazards.

Impaired Driving

Everyone knows that drunken drivers are more likely to cause an accident, but other impairments can also be a big risk. People on prescription medications can be impaired while driving and not even be aware of it. Sleep-deprived drivers also can be an accident risk. You should refrain from driving if you have been drinking, are overly tired or are taking a medication that lists driving impairment as a side effect.

Weather Conditions

A big contributor to car accidents is the weather. Icy or wet roads and poor visibility caused by rain, fog or snow are among the most-common causes of weather-related accidents. If you have to drive during inclement weather, you should slow your speed and make sure you are being vigilant.

Inexperience

There’s a reason that younger drivers pay higher insurance costs. Inexperience behind the wheel is a top cause of auto accidents. And it’s not just overall inexperience. Experienced drivers who are driving a different type of vehicle, such as a motorcycle or large truck, also can be more prone to accidents.

Car accidents kill tens of thousands of people each year in the U.S. To stay safe and avoid them, it’s important to know how they happen and take appropriate precautions.

References

https://braunslaw.com/practice-areas/car-accidents/

http://www.enddd.org/the-facts-about-distracted-driving/

http://www.pbs.org/newshour/rundown/growing-number-states-fine-slowpoke-drivers-highway-fast-lanes/

http://www.drivehomesafe.com/article/inexperience_and_immaturity_causes_teen_accidents__deaths-12.html