Your car insurance rates are ultimately based on the likelihood that you’ll file a claim and the potential cost of that claim to the insurance company. Although each insurer takes a different approach to calculating premiums, there are some criteria that are fairly consistent from one carrier to the next. One of these criteria is accident history.
If you were involved in a recent collision, your insurance company will most likely consider you to be a higher liability and will therefore increase your premiums. Fortunately, in an effort to attract more policyholders, some insurers are more lenient on drivers who have an accident history.
If you were involved in a collision and noticed an uptick in your premiums as a result, here are five potential ways to get your premiums reduced:
1. Take A Defensive Driving Course
Some insurance companies offer discounts to policyholders who take a defensive driving course. The idea here is that such a course will reinforce good driving habits and will therefore reduce the likelihood that you’ll end up filing a claim.
Some defensive driving courses must be taken in-person while others are available online. Your insurance company may only offer discounts for taking a course that meets specific criteria, so speak with your provider before comparing your options.
2. Opt For Less Coverage
If you currently have add-on coverage like comprehensive insurance, collision insurance, or uninsured/underinsured motorist coverage, consider reducing your policy limits or removing those coverages from your policy. You may also be able to lower your premiums by opting for less liability coverage, though you should bear in mind that the lower your coverage limits, the higher your financial liability in the event of a major accident.
Another way to get your premiums reduced is to opt for a higher deductible. This is the amount you will have to pay before your insurance coverage pays out.
3. Consider Other Discounts
There are numerous insurance discounts available, but some insurance companies won’t offer them unless you ask. Common discounts include multiline discounts, multi-vehicle discounts, good student discounts, and discounts for paperless billing.
4. Purchase A Vehicle That Is Cheaper To Insure
Some vehicles have particularly high rates of theft and accidents, so they tend to cost more to insure. You may be able to get your insurance rates lowered by purchasing a vehicle that has a low claim rate and low horsepower.
5. Compare Quotes From Multiple Insurance Companies
Since each insurance company takes a different approach to calculating premiums, the rates you get from one provider could be significantly different from another. If you noticed an uptick in your rates after a collision, try comparing quotes from multiple providers to find one that caters to your particular driver profile.
To help you save time, our team conducted a study that compared estimated auto insurance quotes from multiple providers in each state for drivers who had an accident history. You can find the results of that study here.
If you know of any other strategies for reducing car insurance premiums after an accident, feel free to share them in the Comments section below.