Tips To Avoid Insurance Rate Hikes After An Accident

Have you recently been in an accident and are worried that your insurance rates will go up? If so, there are steps you can take to mitigate some of this concern. The following are a few auto insurance tips that will come in handy if you are ever in an accident.

Report the accident immediately

It can be tempting to simply not tell the insurance company, especially if you are at fault and the other driver seems open to handling the situation privately. Unfortunately, you may be setting yourself up for bigger trouble down the road. Most states have a statute of limitations and they may not recognize any private handling of the accident. This means the other driver can come back and sue your insurance company months or even years later. If you didn't report the accident, your rates may skyrocket, or you could even be dropped by your insurer. It's even possible that your insurance won't or can't cover the unreported accident, so you will get sued directly.

Get copies of all accident reports

Your insurance company will often pull accident reports on their own, but not everything in the state and national databases is updated correctly. Sometimes there are blatant errors. Make sure to get a copy of the accident report, as well as copies of any court documents from the accident. This is especially important if you weren't at fault but your insurance still had to cover part of the accident. This can occur if the other driver had insufficient insurance or in the event of a hit-and-run. By having copies of the documents, you can prove to your agency that the fault didn't lie with you.

Take a class

Don't despair if you were at fault. Many insurance companies provide a discount if you take an accident avoidance or defensive driving course. Contact your insurance agent before enrolling in such a course, though. The insurance company may have specific rules on what classes are allowed, depending on the cause of the accident or where they can be taken for the credit to apply to your policy. Some insurance companies may even provide their own classes.

Try negotiating

You can sometimes negotiate with your insurance. For example, if you were at fault but there were extenuating circumstances, such as a mechanical malfunction or bad weather, your agent may be able to minimize the increases in your cost. This is more likely to happen if you have a long history of good driving up until the accident. Your agent may also be allowed to provide accident forgiveness, particularly if you don't have any previous claims.

For more help, contact an auto insurance agency near you.