If you sustain property damage or bodily injuries in a car crash, you may be hesitant to file a claim with your insurance provider because you are concerned about your rates increasing. The reason you have insurance in the first place is to cover such scenarios, though, and filing a claim does not automatically mean your premium will go up. For example, many providers now offer Accident Forgiveness, which prevents a spike in fees following your first claim. In other circumstances, though, filing a claim can affect your coverage. Below, an accident attorney from Egan & Richgels, S.C. in La Crosse, WI, explains what you should know about how collisions can affect auto insurance coverage.
Ask an Accident Attorney: How Will a Collision Affect My Coverage?
Why Rates Can Increase
If you get into a collision, your insurance provider may determine you are more likely to get into another accident in the future, and, as a result, you will become a “high-risk” customer. High-risk customers are more expensive to insure because they are more likely to file subsequent claims, so their premiums tend to be higher.
You can be considered a high-risk customer even if someone else was liable for the collision that forced you to file the claim. Although the accident itself may not have been your fault, your driving habits may have contributed to it. For example, if you always drive at rush hour, or if you live near dangerous intersections where collisions often occur, the insurance company will likely consider you a high-risk customer.
Factors That Affect Premiums
Just because you file an accident claim does not mean your rates will automatically increase. Every insurance provider considers a variety of factors when determining how much they should charge each customer. Circumstances that will affect whether your premium increases include the severity of the collision, your percentage of fault, your driving record, and your history with the company.
If you were hurt in a collision and the insurance adjuster is refusing to work with you, turn to a compassionate accident attorney at Egan & Richgels, S.C. in La Crosse, WI. Their personal injury law team will help you gather evidence, calculate damages, and negotiate a fair settlement. You can learn more about their experience helping clients secure compensation by visiting their website. To schedule an initial consultation with a lawyer in La Crosse, WI, call (608) 784-0087.