How to Lower Car Insurance Rates After a Car Crash

Crashing your car will significantly raise auto insurance rates. Netquote.com reports that the rate will be increased for three years. If you were at fault and if you were ticketed for the accident, your premiums may increase for a longer period. While you probably won't be able to lower your auto insurance rates immediately after a car accident, there are steps you can take that might keep them from going sky high.

Report any accidents to your insurance company immediately after the crash, even if they are minor. State laws can prevent the auto insurance premium from being increased unless the accident was your fault. If you are at fault, the auto insurance company lawyers may be able to prove that the other driver was also at fault. Proving liability of the other driver will reduce the amount your company has to pay out for repair claims, so it could reduce the amount of the premium increase. If you fail to report even a minor crash, you could get hit with a large premium increase if the insurance company finds out.

Ask for forgiveness from your insurer. Some auto insurance companies have a "forgive the first accident" policy. As the alternative is getting hit with a 40 per cent premium increase and losing current discounts, according to Netquote, you will want to ask about this policy when you talk to your insurance company after the accident. State Farm is one company that offers this policy if you have had no other accidents for nine years. The Canadian Automobile Association also offers a "forgive the first accident" policy.

Keep your driving record clean. One of the components that affects your auto insurance rate is the amount of points you have on your driving record. Get too many points and your license is suspended, plus each point increases the insurance premium. Visit your state's Division of Motor Vehicles website for a list of infractions and the point penalty for each one. There are two ways to get rid of the points: attend driving school courses or wait a few years and the points will disappear if you stay out of trouble.

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About the Author

Eric Novinson has written articles on Daily Kos, his own blog and various other websites since 2006. He holds a Bachelor of Science in business administration from Humboldt State University.

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