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Understanding How Accidents Affect Your Insurance Rates

At O1ne Mortgage, we understand that life can be unpredictable, and accidents happen. If you’ve recently been in an auto accident, you might be wondering how it will impact your insurance rates. Your driving record is a significant factor that insurers consider when determining your premiums. A recent accident, especially if accompanied by moving violations like speeding tickets, can lead to higher rates.

What Happens to Your Insurance Rates After an Accident?

While an accident can increase your insurance costs, it’s not always a permanent change. Many insurance companies only consider the last three to five years of your driving record when calculating your rates. This means that an accident from six years ago might not significantly impact your current premiums, provided you’ve maintained a clean driving record since then.

It’s important to compare auto insurance rates from different companies when you’re ready to switch carriers. This can help you find the best rates and potentially save money.

Other Factors Affecting Your Auto Insurance Rates

Your driving record isn’t the only factor that affects your auto insurance rates. State-specific minimum coverage requirements, your gender, age, marital status, and how much you drive can all influence your premiums. Additionally, the type of car you drive and whether it’s leased or financed can also play a role.

Opting for a higher deductible can lower your premiums, but it means you’ll pay more out-of-pocket if you need to file a claim. In most states, insurers can also consider your credit score when determining your rates. A high credit score can lead to lower premiums, as it suggests you’re less likely to file a claim.

How to Lower Your Car Insurance Rates After an Accident

There are several ways to offset an increase in your car insurance rates following an accident. Improving your credit score by making timely debt payments and reducing outstanding balances can help. Additionally, exploring discounts for students, military service members, seniors, and bundling policies can reduce costs.

Reducing your annual mileage by working from home or having a shorter commute can also lower your premiums. Be sure to inform your insurance company of any changes in your driving habits.

The Bottom Line

Accidents, moving violations, and traffic citations can lead to higher car insurance premiums. These increases typically last three to five years, assuming no new infractions occur. Improving your credit score and exploring available discounts can help reduce your premiums and improve your overall financial health.

For any mortgage-related needs, call O1ne Mortgage at 213-732-3074. We’re here to help you navigate your financial journey with confidence.

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