Not everyone realizes that their auto insurance rates can go up after they experience a car accident. Insurance companies provide coverage to a certain degree but also have the goal of making money as a business. When a driver is in a car accident, the auto insurance company loses a large portion of money in order to cover the accident. Feel free to talk to a Jackson auto accident attorney about your legal options if another driver was involved in the crash.
Why Do Auto Insurance Bills Increase After an Accident?
When it comes to how auto insurance works, auto insurance is designed to cover potential damages to your vehicle. Some auto insurance coverage offers monetary compensation for car accidents and liability while other policies cover natural disasters. In either case, auto insurance companies are a type of business.
This is why when a car accident happens and the auto insurance company loses money, insurance rates could increase. Auto insurance rates may increase in terms of your base car insurance premium depending on state laws and insurance policies. In some cases, this increase only occurs if you were at fault for the car accident.
However, some insurance companies and certain states may require an increase in your insurance rates regardless of who was at fault. This means your auto insurance premiums could increase even if the other driver was completely at fault for the accident. One of the reasons for this is that many auto insurance companies perceive any driver who was in an accident as a high risk.
How much your auto insurance bills increase varies depending on the state you live in and each insurance company. Some states have laws to prevent auto insurance companies from increasing base premiums if certain conditions are met. For example, some states do not allow this if you were not at fault for the accident.
Ways to Reduce Your Auto Insurance Bills
There are other ways to reduce or prevent your auto insurance bills from increasing other than avoiding car accidents. Avoiding traffic violations like speeding tickets and keeping an overall clean driving record helps. Young drivers might be offered cheaper rates if they apply for car insurance under their parents.
The type of vehicle you purchase can have an effect on how high your insurance bills are. There are ways to calculate or estimate insurance rates for the car you plan to buy. Feel free to contact the insurance company to ask about this and discounts.
If you have questions about the car accident, try contacting a Jackson car accident lawyer for help. A lawyer can help you maximize your compensation for the damages you suffered.
Auto Accident Lawyer in Jackson
Finding out your car accident claim was rejected can be disheartening. Reach out and call the Germany Law Firm, PLLC by dialing (601) 487-0555 to talk to a Mississippi multi-vehicle accident attorney for a consultation today. Our experienced legal team is prepared to help increase your chances of significant compensation for medical bills, emotional distress, and lost wages. We are located throughout Jackson, Madison, Gulfport, Oxford, and other cities in Mississippi.