What are six ways you can save money on your car insurance after an accident?
Going through a car accident and its aftermath is very stressful. On top of the physical and emotional pain that you may be experiencing, you might be worried about your car insurance rates, also known as your monthly premium.
As many car owners know, insurance premiums are often raised when a driver causes an accident and it is their fault. Luckily, there are things that you can do to prevent these rates from being raised dramatically.
In this article, we describe six ways that you can save yourself money by lowering car insurance expenses after an accident.
In this article:
Tell Your Car Insurance Provider About Your Accident
You may be tempted to not tell your car insurance company about an accident if it is minor, but telling your insurance representative is a wise decision. The owner of the vehicle you wrecked can sue you for the damage you caused, even weeks after its occurrence.
If a driver sues you and you haven’t reported the accident to your insurance company, the insurance provider can refuse to pay your legal bills and potential payments to the other driver. So, while an insurance company may raise your rates if you report an accident, it is much safer to report than not report it.
#1 Ask Your Provider About Accident Forgiveness
Accidents are a part of life, and some auto insurance companies recognize that by offering an accident forgiveness clause. The conditions required by each insurance company for accident forgiveness are different, so it is best to give your provider a call and ask what your conditions are.
Some insurance companies forgive your first accident, and others forgive an accident after buying insurance from them for three to five years, according to Money Under 30.
Companies that offer accident forgiveness include:
#2 Find A Provider With A Lower Premium
Car insurance providers vary in their average rates for drivers with at-fault accidents. In comparison to other leading providers, Geico and State Farm offer some of the the lowest insurance rates in the industry for drivers with at-fault accidents.
Our review team wrote an article on the top cheap auto insurance providers, and these were our top five providers:
Whenever you shop for car insurance, we recommend getting quotes from multiple providers so you can compare insurance coverage and rates. In addition to the insurance company you choose, factors such as your age, vehicle make and model, and driving history can affect your premium, so what’s best for your neighbor might not be best for you.
Use our tool below to start comparing personalized car insurance quotes:
#3 Improve Your Credit Score
Many drivers know that car insurance companies consider a driver’s accident history and driving record when determining their rates, but did you know that a driver’s credit score can also affect their car insurance premiums?
According to Investopedia, many insurers look at a driver’s credit score to determine the insurance rates they will offer. Insurance companies believe that those with higher credit scores are less likely to file a claim. Therefore, it’s a good idea to try to improve your credit score.
Once your credit score is raised, you may be able to get a more affordable policy from a different provider or the one that you already work with.
#4 Look Into Discounts
Several auto insurance companies offer substantial discounts to their customers. The table below reveals common discounts that leading insurance companies offer.
As you can see, many of the discounts vary based on the specific individual applying for a discount, so it is best to call the insurance company to find out what your specific discount would be.
In addition to the discounts listed below, some insurance companies offer a discount for an anti-theft device. Geico offers a “potential savings” of 25 percent if you have an anti-theft system for your vehicle. Your insurance company should be able to tell you whether they offer this discount and which device may qualify for it.
| Insurance Provider | Geico | AAA | Erie |
|---|---|---|---|
|
Student Discount |
15% |
14% |
Varies |
|
Multiple Car Discount |
25% |
27% |
25% |
|
Bundle Home and Auto Insurance Discount |
Varies |
Varies |
25% |
|
New Driver Discount |
Varies |
Varies |
20% |
|
Military Discount |
15% |
Varies |
None |
|
Senior Discount |
Varies |
Varies |
None |
#5 Consider Dropping Your Comprehensive Coverage
Comprehensive car insurance covers non-collision damage that is out of your control, such as damage received during a storm, a fire, or from theft. Since this type of insurance is optional, you might consider stopping this coverage to lower your insurance rate.
Of course, stopping comprehensive coverage could expose you to heavy costs if a natural disaster or theft impacted your vehicle. If you have a very old car with low value that you hope to replace soon, it might be worth dropping this coverage. If you have a relatively new car that you would like to drive for many more years, then dropping this coverage is not recommended.
#6 Join A Usage-Based Insurance Program
Drivers who average less than 10,000 miles a year might consider joining a usage-based insurance program. When you sign up for one of these programs, a telemetric device will be installed in your car to calculate possible discounts based on how much, how well, and/or when you drive.
Popular usage-based programs include State Farm’s Drive Safe & SaveTM, Progressive’s Snapshot®, and Allstate’s Drivewise®. You could also consider purchasing Metromile insurance, which charges you exclusively by the mile.
Our Recommended Auto Insurance Providers
The aftermath of an accident is a great time to compare your current auto insurance provider’s offerings to those of other leading providers.
You can start comparing the cost and coverage of your current provider against other top providers by reading our 12 best auto insurance companies of 2020 review.
We recommend getting several auto insurance quotes before you make a decision. To get started, fill out the form below and see what’s available in your state.
