Generally, after making a claim your car insurance premiums is expected to rise.
The main reason for this is that now you have become a liability for the insurance company. They have to spend a great deal of money each time you have an accident and the insurer wants to ensure that your premiums are enough to compensate for the expenses and at the same time get profit from them.
To what extent your car premiums will go up is really difficult to comprehend. One of major factors is the number of claims you have had already. If your driving record shows instances of past accidents then premiums will increase further.
If the frequency of accidents is more then you are considered a driver with high risk, and you may have to pay highly for it.
Your insurance is also affected by how often the car accidents occurred. If you get into two car accidents within a year of each other you can expect your rates to go up much higher. No matter where you look, your insurance premiums will be affected by your driving record this way, although you may be able to find a better deal by searching around.
The young male drivers have to pay the highest premium rates. Though this may sound a bit typecast, according to a research done by the insurance companies such young drivers have a higher chance of getting into accidents.
The young male drivers are considered a liability by the insurance companies, because they don?t have any past record. If such drivers get involved in an accident then their premiums will shoot up till they create a good driving record of several years.
In certain cases your insurance may not be affected as much. This is usually if the accident was not your fault or if you have had a long standing clean record.
Of course, some insurance companies will still up your rates regardless, even if the accident wasn?t your fault.
In order to know the process how the premiums are set you must have a slight knowledge about the ISO symbols. ISO is the abbreviated form of Insurance Services Offices, Inc. and they give a particular symbol or number to every car. This symbol tells how much the value of the car is.
This makes the ratings by the insurance companies just and identical for all. If you own an expensive vehicle then your ISO rating must be really high. This means that it will take more money to fix the damages of your car. Such vehicles usually have a higher premium rate. After an accident, your premiums will also increase regardless of your ISO rating.
Your insurance will of course not be withdrawn after a car accident, but it possibly will become so huge that you may have to cancel it. Even if you cancel the insurance after an accident, the insurance company will still anyways cover your claim. You must provide the correct time when the accident occurred.
This is important because if your accident took place even a minute after the expiry of your plan, you will have to bear all the expenses yourself.
Now you know how much your claims influence your premium rates. You may thus find it needless to file claims for light accidents, to avoid paying higher premiums in future. It is recommended that you avoid filing a claim if the expenses are below $750 dollars.
You may even avoid claiming for insurance second time if you face another accident on your driving record in one year.
Graham McKenzie is the content syndication coordinator for Carinsurancesa.co.za. South Arica?s leading car insurance portal.
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