If you're unlucky enough to be at fault in an automobile accident, you can make the ensuing insurance hassle less painful by keeping yourself well apprised of the details of your coverage. At the very least, you should familiarize yourself with the conditions of your policy, which explain what you must do in the case of an accident, and the declarations page, which gives a rundown of the types and amounts of your coverage.
First and foremost, you should know what to do immediately following the accident, assuming you haven't been seriously injured. You should have your insurance information handy in your glove compartment, ready to exchange with the other driver(s) involved. This should include a pre-printed form for writing down the details of the accident. It also can't hurt to make a rough sketch of the scene in order to avoid possible future discrepancies in the involved motorists' accounts of the accident.
In case you're tempted not to report an accident to your insurance company -- because, say, no one is injured and you don't think you were at fault -- you should keep in mind that even in a no-fault state (where each driver's insurance pays for their own damages), the other motorist's insurance company will probably seek repayment from your own if they believe you to have been fault. In other words, just because you're willing pay for your own damages in order to avoid an increase in your premium, it doesn't mean that your insurance company won't be contacted by somebody.
If you do decide to have your own (or the at-fault motorist's) insurance company pay for your repairs, make sure that you are in control of the situation. Even though the money's coming from the insurance company, you should always have the final say in what happens to your vehicle. So it's up to you to find a reputable auto repair facility and make sure they use decent replacement parts. Ideally, they should use OEM (original equipment manufacturer), rather than generic, parts. However, some insurance policies do authorize the use of generic parts, in which case you're only option may be to pay the difference yourself. Read the fine print of your policy to find out for sure.
How much should you expect to pay if you're at fault in an accident? It's nearly impossible to predict exactly, but there's usually a substantial increase in your monthly insurance premium. According to the Insurance Services Office (ISO), the standard rate of increase is 40 percent of the insurance company's base rate (or the average amount of claims paid plus the company's processing fee). So if your premium before the accident was $400, but your insurance company's base rate is $500, your own premium could go up to $600. However, some companies will use your existing premium, and increase that by 40 percent, in which case, your premium would go up to only $560. While forty percent is the average, the amount by which your premium goes up will depend on your age, your driving experience, where you live, and the claims made by other drivers in your demographic.
There are some softhearted insurers who will actually leave your premium unchanged after your first accident - a sort of "get out of jail free card." This favor is usually only granted if you have been with the company for a significant amount of time without making any claims.
Keep in mind that you have certain rights when filing a claim with your insurance company, which vary from state to state. A few general rules: an insurance company may not knowingly misrepresent your policy; they must acknowledge and act on your claim within a certain period of time (usually around 15 days); they cannot force you to sue the other party in order to recover damages; and they cannot refuse or delay payment of claims without providing a valid reason. If you feel that your insurance company is not following these guidelines, you'd be justified in filing a complaint with your state's insurance department.
In order to insure that everything runs as smoothly as possible after your accident (that includes your vehicle), familiarize yourself with your auto policy, your rights and what actions to take immediately following an accident.
- Erin Mahoney
Disclaimer: This article is published for general information only, and is NOT intended to serve as specific legal or financial advice. Readers should talk to an insurance professional before making changes to any insurance policy.
