Accidents are dreaded for the possibility of substantial damages and injuries. However you may be careful there is no accident proof motorist. Millions of small and large accidents happen every year across the United States of America. A few thousands of them may never be reported to insurers as the owners settle the damages out of the pocket.
When people first start driving they get one of the highest vehicle insurance charges. They have no history or experience and therefore they are not trusted enough to stay safe on the roads. As the time passes they can prove to be cautious drivers by not causing any incidents and getting any traffic violation tickets. Also their age progress and they gain on the road experience.
Then, they start getting various discounts for experience, being older and more mature and having no claim bonuses. As long as they stay accident free their rates can keep down going for about five years. At that stage they probably receive cheap auto insurance premiums due to maximum discounts and therefore the rate drop due to good driving records may slow or stop.
When they have at fault accident and they or third parties make a claim on the policy their rates will be reconsidered at the next renewal. A few things will determine what happens to their rates. If it is a small incident and they have a long and clean history they may be able to escape without any rate increase.
When they are involved in crashes that they are at least 51% responsible they will first of all lose no claim discounts if they have any. Then they may face a surcharge if they are considered high risk. A driver who has been found negligent and received accident related moving violation tickets can see considerable rise in their premiums.
The real problems start when the accident counts increases and they have traffic moving violation tickets and point deductions on their licence. So much so that some companies may withhold from offering any renewal terms. Generally, companies are not allowed to cancel a policy in the middle of the coverage period unless they have sufficient grounds to do so. Driving under influence may be one of those cases in which policy is cancelled immediately by some insurers.
Generally, at fault accidents affect car insurance rates for at least three years. It may be that you lose all your good driver savings and start all over again. However keeping a clean record for the next year will put you back on the discount trail. Staying accident free for about five years would qualify you for accident forgiveness with most companies. This may be a chance to buy coverage if you are worried about causing another incident and losing your low rates.
Auto insurance premium increases and savings because of no claims vary considerably depending on the companies. You should keep checking for the best deals at each renewal time. This is a good way of making sure that your insurer stays competitive. Otherwise you may stay with an expensive insurer for a long time paying over the odds premiums.