Protect yourself by ensuring that you have sufficient insurance coverage when driving on the road. Depending on the amount of coverage that you have, your insurance premium will vary in cost. As long as you're a safe driver, your insurance premium will continue to decrease each year; however, if you get into an accident, you can usually expect the same coverage to cost you more the next year. Unfortunately, some accidents are unavoidable, and according to car insurance industry estimates, the average American will get into a car accident once every 17.9 years. If you've just gotten into a car accident, but don't want your premium to increase the next year, consider following and implementing these 3 tips.
Look for Policies that Offer an Accident Forgiveness Clause
Most insurance companies understand that some accidents are simply unavoidable. It might not be your fault completely at all. Road conditions, the position and speed of the other vehicles on the road and many other factors can easily contribute to the accident as well. With that said, before signing the dotted lines, look for an auto insurance policy that includes an accident forgiveness clause.
The accident forgiveness clause basically ensures that your insurance premium will not skyrocket for the first accident that you get into every set couple of years. You want to consider whether there are any restrictions in place in regards to the type of accidents that count, and how long it takes before the clock resets. For example, if you get into an accident now and then once again 20 years later, the time allowance for the clause might have already reset, and you will be covered under the accident forgiveness clause both times.
Consider Dropping Your Collision or Comprehensive Coverage
At times, your insurance premium is undeniably going to increase regardless of what you do. You might not have an accident forgiveness clause in your policy or you might've unfortunately be involved in multiple accidents within the same year or within the span of several years. If this is the case, then you can prevent your premium from skyrocketing by getting less coverage. In particular, consider dropping your collision and/or comprehensive coverage if you own an older vehicle.
This is due to the fact that the cost of tacking on this additional coverage will generally be more than what your car is worth if you don't get into any accidents from then on. If you own an older vehicle, repairing the car on your own dime might also be rather inexpensive. In which case, there's really no point in getting coverage for any damages that your car might sustain.
See Whether Taking a Driving Course Will Make a Difference
Some auto insurance companies are willing to offer some type of leniency to their clients. Those who get into multiple car accidents within the same year are allowed to enrol in a program that basically will keep their insurance premium at the same cost if a safety driving course is taken. Some auto insurance companies will specify which course you need to take, and the type of courses that are eligible. For example, you might need to receive a certification of completion from a specific driving program.
If this type of program is offered, taking the driving course might be a lot cheaper than having to pay more on your auto insurance premium. Keep in mind that you'll have to pay the more expensive premium for several years before you'll receive the same discounted rates as you were paying before.
Don't let an accident take control of the cost of your insurance premium. Be proactive by finding an auto insurance company that offers you different alternatives and solutions to combat rising insurance premiums after an accident.