Don’t get overwhelmed with car insurance payments after an accident. Here’s a guide on how your insurance payments will be affected by an accident and how to keep the cost low.

Immediately after an accident in which you’re at fault, your car insurance rates will rise significantly. The average annual premium for full auto insurance coverage before an accident is $1,674 and $2,311 after an accident. This means that insurance goes up by a whopping $637 on average.

But the actual cost of your insurance policy after an accident depends on several factors such as your insurer and state. Some insurers also charge more if the crash caused extensive damages or was caused by a DUI incident. You should also know that a DUI may affect your auto insurance coverage. Does auto insurance cover DUI accidents? That actually depends on your provider. With some policies, you will be responsible for covering any damages you cause in a DUI accident.

The cost of your insurance also depends on your track record. If this is your first accident, your rates won’t be hiked up as high as a repeat offender.

The good news is that your rate should return to normal after 3-5 accident-free years. But in the meantime, here’s how to save some money.

1) Shop around for cheap insurance. You may want to consider shopping around for a new insurance company if your rate is hiked up unreasonably after an accident. Not all companies are the same, so you should compare several companies and find the cheapest option for your demographic. The cheapest car insurance company for a 20-year-old male may not offer cheap car insurance for over 30s.

2) Apply for a discount program. You should also look into discount programs that you may be eligible for. Some drivers may qualify for the accident forgiveness program from their insurers, which can save them a lot of money. Still, there are other discounts you can qualify for if you work in certain occupations like teaching or you don’t drive much. Other programs include good students, safe driving, and multi-policy.

3) Get a car accident insurance settlement. Another way to save money is by negotiating a car accident insurance settlement with your insurance provider and discussing the various methods to settle the cost.

4) Increase your deductible. You can lower your premium rate by agreeing to pay a higher deductible. But know that this means you’ll have to pay more out of pocket in the case of a future accident.

5) Improve your credit rating. In some states, your credit score may be considered to determine your car insurance rates. Improving your credit could reduce your rates, even after an accident.

6) Update your coverage. Reducing your coverage amount will lower your rates. Make sure to only do this with the help of a licensed insurer to avoid committing insurance fraud and ensure that you maintain the minimum insurance coverage levels for your state.

7) Buy a cheaper car. Cheaper cars equal cheaper insurance rates.

To learn more about car insurance after an accident, read our full article here: [ Ссылка ]

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Disclaimer: This video is for educational purposes only and serves to share an opinion, with no guarantee of gains or losses on investments. WealthyMillionaire is not a financial adviser. Investing is risky, and your investments are your responsibility alone. Always consult with a professional financial advisor before implementing any of the strategies shared in this video.

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