Even the most cautious of drivers can be involved in auto accidents. While many accidents only cause minor damage, the driver may be concerned about the effect it may have on their auto insurance. Some may fear being canceled for filing a claim even if the accident was not their fault.
Mercury Insurance Michigan offers drivers some general tips about the effect of accidents on their insurance policies. While the exact affect on the policy may depend on many factors, in general, this is what you can expect.
An Accident Where the Insured was Not at Fault
Most of the time drivers involved in an accident where they are not at fault, have not had an accident in the past three years and have no other insurance claims or violations on their accounts may see not change in the premium.
Insured At Fault and Property Damage Involved
If this is the first accident and the insured is found to be at fault, it is not likely that the driver will lose his good driver discount. However, the payment for property damage may cause the driver to pay more for coverage.
Insured at Fault with Bodily Injury Claim
When someone is injured in an accident, the driver found to be at fault will likely lose his or her good driver discount. Insurance premiums may be increased by as much as 25 percent.
Second or Third Accident Along With Moving Violations
When drivers continue to make mistakes in driving, resulting in accidents or moving violations, the insurance company may decide that the driver presents too large a risk and refuse to renew the policy. If the driver is charged with a DUI in relation to an accident, most companies will cancel the insurance.
While accidents happen on a daily basis, drivers that are involved in several accidents or have several moving violations often pay more for insurance. Policies may be canceled as well. If a driver has an accident he or she should take precautions to prevent future accidents. In three years, the driving record could be clean again.
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