How Your Claim’s History Affects Your Car Insurance Premiums
With a competitive insurers market, your insurance company is looking for the best way to determine what your risk is and what the likelihood of your having an accident might be. To determine this, they will investigate your claims history as well as your driving history to calculate your car insurance premiums. As you can imagine, the fewer incidents you have on your record, the lower your risk will be perceived.
Anytime you have an accident that requires a claim be filed, it goes on record. It doesn’t have to be with your current insurer even. If you have been involved in an accident, it will be an accessible history. If you have but one or two over the course of your driving experience, your rates won’t be affected much. If the accidents do not obviously show a pattern of negligent driving, you will still be viewed as a positive risk and worthy of lower rates. This is also the case if you weren’t the perpetrator or the person found responsible for the incident. However, if you have a long list of incidents, this demonstrates you are at a higher risk for getting into an accident, and your insurance company wants to make sure they won’t lose money automatically by offering your coverage. To this extent, you can expect higher car insurance premiums based on your driving history.
Your driving history says a great deal about your chances of needing to file a future claim. If you have no history of speeding violations, this demonstrates that you most likely are a safe driver and worthy of benefiting from lowered rates. Your insurance company can feel confident that they won’t be inundated with a series of claims due to your negligence, and will place you in a category of low risk. On the other hand, a spate of tickets on your record demonstrates that you may very well be heading for an accident even if you haven’t had one before. In this case, they will make a determination on not on what your rate for car insurance premiums will be, but whether or not they want to cover you in the first place.
A demonstration of bad driving habits marks you as someone who is a risk, and being such, will more than likely be filing a claim in the future. With this prediction, your insurance company again wants to make sure they are covered by having you pay in advance, so to speak, to cover any incidents further down the road.
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