Can An Accident Affect The Cost Of Your Auto Insurance Policy?

Sometimes, regardless of how careful you are on the road, an accident happens. If this occurs and you are found at fault, your Houston auto insurance premium rates will likely increase. The reason is not that you are seen as being negligently involved in the incident, but rather that you are now seen as a greater risk.
If you are found at fault when an on-road accident happens and your auto insurance cost becomes more expensive, it is advisable to understand how fault is determined.

• If there was not another vehicle involved in the incident, you will be found at fault by your insurance company.
• When two or more vehicles are involved in the collision, blame must be assigned. There are some common incidents where it is easy to determine who is at fault. Where it is not so easy to assign blame, the police examine the scene and deliver a report determining fault.

Insurance companies usually have their own system to determine how much they will raise the policy costs of an at fault driver. Each insurer assigns a number of points to each type of accident. If the driver is then found at fault for that kind of accident, the set number of points will be placed on the driver’s record. Premium increases are determined by the number of points recorded. The driver will carry these points on his record for many years to come, and, as a result, pay an increased premium for all of those years. If the driver changes his insurance agency, the points still remain on his record.

Some insurance agencies, due to customer loyalty, refrain from penalizing their clients. This is usually only done when the client has been with the insurer for many years, or when his driving record is a good one. Including accident forgiveness on your policy is another way to prevent a penalty in the event of an accident. Most insurance companies charge extra for this added protection, and only award it when a client has an impeccable driving record. If you change your insurer, you would need to apply for accident forgiveness on your new policy.

Accidents happen, but there are ways that you can stop the occurrence from increasing your car insurance rates. For more information about how this can be done, call  Reliable Insurance Managers at 713-227-7283. We will happily answer all your questions.

What is a No-Fault Accident and Will it Affect Your Insurance Premium?

You may think a no-fault accident is an accident that was caused by situations that were not your fault.

An example of a no-fault accident would be running into a pot hole or losing traction on a sandy street. However, a no-fault accident can simply be an accident at which you are found to be the faultless party. If you are involved in a no-fault accident and you have to make a claim, you might be wondering if your insurance premium will increase.

This post will examine what the insurance is for and why it may cause your premium to increase.

What is a no fault accident?

A no-fault accident is simply an accident that's caused by anything other than you. This could be due to a flat tire causing you to lose control of the car, an oil slick in the road that causes you to lose traction and have an accident or you being hit by another driver.

No-fault accident insurance, also called PIP or personal injury protection insurance, covers damage to a car or person caused by a no-fault accident. A no-fault accident cover is an endorsement on most insurance policies and some states require a driver to have it.

These states include; Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Pennsylvania, and Utah

Even if your state does not require it, there are many benefits to having a no-fault auto cover. Some of these benefits include being covered whether you're at fault for not and reducing the time it takes to file and receive a claim. The coverage also restricts lawsuits to only extreme injuries or death.

Will your Insurance Cover it?

The simple answer is yes, if you have no fault insurance. However if you don't have no fault insurance, it is up to your insurance provider whether they will pay out on the claim. Keep in mind that no-fault auto insurance doesn't pay for everything. There are some things that are not covered and there are some disadvantages to having this cover.

Some of these disadvantages include:

• No coverage for property damage or vehicle repair after the accident in certain states
• It only covers up to your policies max for your medical expenses
• Making a claim on your policy your premium can rise
• If your vehicle is damaged in a collision where you have no collision coverage your insurance won't pay out anything and you’ll be totally responsible for any repairs to your car or your person
• If you have limited collision coverage your insurance company won't pay out for any repairs to your car if you hit a person, another vehicle or a structure such as a building tree or pole. However if you are 50 percent or less at fault and you hit one of these items your insurance company will pay.
• You're only guaranteed a claim payout if you have standard collision coverage or broad form collision coverage.

There are benefits to having no-fault insurance but there are also disadvantages. Your premium will increase whether or not you are at fault of an accident with this cover. The best way to save money is to shop around for a good priced no-fault auto insurance policy with adequate cover.

Have any Houston auto insurance questions? Give Reliable Insurance Managers a call at 713-227-7283.

What Can You Expect of Auto Insurance as You Age?

Aging changes more than just your hair color. Your auto insurance policy will be affected by both the changes to your lifestyle and your experience that aging brings on.

Auto Insurance for Young Drivers

As a young driver, you will have little experience behind the wheel. In addition, you are statistically more likely to take risks while driving that could result in a higher frequency of accidents and insurance claims. As a result, according to Insurance and Financial Advisor Web News, your premiums could be as much as 100 percent higher than those offered to older drivers.

Ages 25 to 34

Once a driver reaches age 25 they will likely see their Houston auto insurance rates drop. This is especially true of those who've had few claims in the years before. Between ages of 25 and 34, many drivers become married, start families, and buy homes. This too can lend itself to lowered risk and lowered
insurance premiums.

Ages 35 to 39

Research quoted on IFAWebNews.com found that drivers aged 35 to 39, on average, pay almost half of what drivers aged 16 to 19 pay. Again, this is the result of age and experience reducing a driver’s risk. Of course, drivers who have proven to be high risk through a history of moving violations and accident claims will not find this age-related decrease in premiums to be the case.

Ages 65 and Up

Drivers age 65 and up who have had few, if any, accident claims or moving violations will often be charged the lowest auto insurance rates of all. Part of this reduction premium could be attributed to customer loyalty after spending many decades with the same auto insurance provider. Also helping is the fact that many people in this age group log fewer daily miles than younger drivers who must commute to work each day.
We would love to work with you and help you find an auto insurance company ready to offer you the best rates for your age and driving experience. When you’re ready to get started, give us a call at 713-227-7283.