How to Reduce Auto Insurance after an Accident
If you have ever been in a car accident, you know how it can affect your insurance rates. If you have not, car accidents typically cause your rate to increase. In some cases, your premium can increase 20%-25% for about three years, if the other party was injured. There are a number of steps you can take to reduce your auto insurance policy. Most of them have to do with showing the insurance company that you are dedicated to being a safe driver.
Ways to Reduce Your Auto Insurance
There are a number of ways that you can lower the cost of your auto insurance. Some may be effective almost immediately while others will take some time. Below, there are some recommendations on how to lower the cost of auto insurance.
- Tell the truth
- After you get into an accident, it is important that you are truthful with your insurance provider. If they find out that you have not been telling the truth, the insurer withholds the right to refuse to honor your policy. This will leave you personally liable for any damages you may have caused.
- Inquire about accident forgiveness
- This is only applicable for some insurance companies. If it is your first accident, you may be entitled to accident forgiveness. Insurance companies understand that mistakes happen; they may be willing to overlook your first mishap.
- Defensive Driving
- Attending a defensive driving course or driver’s education will show the insurance company that you are trying to improve your driving skills. You should take this course after an accident and let your insurer know when you are planning on taking it and after the course has been completed.
- Increase your deductible
- Increasing your deductible will lower your monthly payment. This should only be done if you have the extra money to pay the deductible in the event of another accident. Increasing your deductible by $200 – $500 has seen a decrease in monthly payments by 15% – 30%.
- Look for discounts
- Sometimes, you might have applied for extra coverage that isn’t necessary. You may be able to adjust your plan in an effort to lower the payment. If you drive less than 10,000 miles per year, your insurer may have an accessible discount for you. If you have been with the company for a long period of time, the company may be able to give you a break.
- Find a new policy
- There are a variety of auto insurers on the market today. Do your research; find a company that will give you a lower rate. You can use the lower rate as a negotiating chip or switch your insurance to the company with the lower rate. In addition, you can try to package any other insurance you need in with your car insurance. For example, if Allstate insures your home, they may give you a lower rate when signing up for auto insurance as well.