Having auto insurance with accidents on your record is tough as you never know what will happen to your rates. Whenever you have an accident, your insurance rate will increase. This increase will not occur right away, but will occur when your policy comes up for renewal.
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The amount of increase varies by the company and whether or not you are at fault. In theory, if you are not at fault, then your rate should not increase at all. This is usually the case, but sometimes insurance companies will raise your rates if you make are in a accident, even if you are not at fault. They state that if you have any accidents at all you are not a ‘good driver’.
If you are at fault and and a claim is filed, your rate will definitely increase, with the average amount being 10%. This increase will continue for about 3 years, at which point it will return to your normal insurance rate, if you are accident free in those three years.
If you have another at fault accident, then another increase will occur on top of the first increase.
Previously insurance companies could drop you, or not renew your policy if you had too many accidents. This posed a problem for many drivers, as insurance is required by law, but no company would insure them. Many reforms in each state and province, have made it so insurance companies can no longer refuse anyone insurance. There are also government set maximum amounts for which they can charge customers.