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Insurance Rates After Minor Accidents

Getting into an accident, even if it is small, can be a stressful experience. If you have to make a claim on your insurance policy, there is going to be a lot of stress involved in this as well. When it comes to minor accidents, you need to be aware of what could happen to your insurance rates. Although you might assume that all accidents are going to result in an increase in rates, this is not always the case.

When it comes to minor accidents, like a flat tire, you aren't always going to have to pay increased rates for your coverage. Sometimes, these incidents will not affect your insurance rates at all. If you want to figure out whether or not this is something that could end up happening to you, then you need to try and find these things out before anything happens. If you know about what could happen to your rates after an accident, then you will be a lot better prepared to deal with things when they do happen. The better prepared you are, the easier things will be if an accident occurs.

Why Claims Can Increase Rates

If you are involved in an accident, even if it is minor, you could be asked to pay increased premiums. There are a couple of reasons behind this that you should consider. First off, car insurance claims can increase your rates because you might be considered more of a risk. When car insurance companies offer premiums to customers they do so based on the amount of risk that you pose to the company. When you have to file a claim, you could be identified as a greater risk than you were before.

When your insurance company has to pay out money on your behalf, then they are going to need to think of some way to recoup some of these funds. If the minor accident that you were in didn't cause that much damage and your insurance company didn't have to pay a lot out, then this could be a good thing for you. If, however, your minor accident ends up costing a lot, then your insurance provider is going to have to pay out a lot more money. As such, they could end up trying to charge you for some of these expenses.

Choosing Not to File Claims

If you have a minor accident in your vehicle, you may not even want to file an insurance claim. Although you might not realize this, it may be in your best interest to actually not file a claim on your policy. Given that your rates could go up after an accident, it's a risk that you take when you file a claim. If you want to minimize the chances of your rates going up, then you will want to evaluate your situation carefully before you decide whether or not to file a claim.

If you are concerned about your insurance rates after minor accidents, then you should try to calculate what the damage to your vehicle actually is. If you can figure out what the damages are to your car, then you can decide if this is less than your deductible. If the damages are not as much as your deductible, then you might not want to make a claim. If, however, the damages are more than your deductible, then it might be a good idea to file a claim. It's really a personal decision that you're going to have to make once you look at all of the facts.

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