Your insurance company will charge a higher insurance premium if you have been involved in an accident. Whether you are responsible for the accident or not, an insurance company will have to bear the expenses.
Post accident will cover you for any personal injury, medical coverage and collision. In case you are found at fault you will still be covered for a compensation to repair your vehicle or any injury to yourself or another driver. This will soon increase your insurance quote in the coming months. You will end up paying more than your earlier insurance payments. Here is a catch on how insurance companies recover the compensation amount that they offer you. They will not be ready to bear your expenses with out knowing how to recover at least a portion of the claimed amount. Soon after an accident, your insurer will look at you as a high risk driver. The percentage of increase in quote would be between 20-40% for about 3 to seven years. In case of multi-car policies, the surcharge is 20 percent of the base rate, and for single-car policies it is 40 percent. The rise in percentage will also be based on other factors such as driver's age, gender, and driving record too.
Policies are charged based on the points. These points are scored depending upon the nature of the accident and the costs associated with the accident. Your insurance rates will be increased as an insurer will assume that you are more prone to such accidents in future. In order to cover up that risk in future, he will start charging you higher premiums. This is usually evident, when you are at fault. Some companies may refuse to continue your insurance cover. They don't want to bear the risk of paying you compensation every time. It is highly taxing for them. Your license may be confiscated after an accident and you will not be in a position to apply for another insurance with some other company. These are the ill-effects of a callous driving or driving under the influence of alcohol and drugs. Even your insurance company will not support you if you have been the culprit of the accident.
Also note that no company will charge you more premiums if you are not at fault. You may have a faultless driving record and hence they have no right to charge you higher premiums after an accident.
