Why does your car insurance go up when you get into an accident?

paw4838

to remind you that it cost more to hit

UCANTCME

I AGREE WITH YOU AND BELIEVE THAT THEY SHOULD GIVE US SOME TYPE OF REBATE FOR NOT USING IT FOR ALL OF THOSE YEARS.

giggly nurse

cos the insurance company see the situation that you've been in one accident, and I think they base it on the liklihood of it happening again.

monkeydick

UUUUUUUHHHHHHHHHHHHHHHHH
Because they have to pay for it and you are more of a risk then!

Digital Age

Car insurance is a business. It is not a social service trying to play fair with everyone.
If you get in too many accidents, they will put you in a High Risk Pool where you will have to pay exorbitant premiums for years, especially if you are younger.

cristink

because this means you are a statistic and there is a higher chance of you getting into another accident according to the odds
and the insurance companies need more money from you in order to cover their cost if ever you get in another accident

What the companies do in essence is "pool" everybodys money together and if lets say you get into an accident then you increased the risk financially for everyone else since they had to pay "x" dollar amounts out from the "pool" to fix the situation so they raise your rates because the "pool" is smaller thanks to you and you have become a risk. Thus the reason to try and be as careful as possible hope this answer's it.

noeusuperstate

Becasue you are a bigger risk and less profitable. Insurance is one of those things you get but hope you never have to use.
Which is why you should not buy product insurance from shops but make sure you have adequate contents insurance (especially if you rent your home)

joseph b

,its a bit of a gamble that you lost ,,,,, three nil three nil but life's a bowl of cherries

pinoygurl

The reward you get for not getting into any accidents is to be able to continue to drive. If they raised your insurance it's because you are considered a high risk.

Dr. Deth

what if you didn't have insurance - would you have had enough money to pay for all repairs? would you have wanted to use all your own money to pay for those repairs? what happens if you cause an accident that injures a person - do you have $50,000 cash to pay for medical bills for that person, etc

Jose

If the accident was your fault, then you're a higher risk for the insurance company. Hence, your rates go up. If you weren't at fault and have proof, fight your insurance company to lower the rates. They have no grounds to have raised them in that case.

Gerry

Because now they consider you, more of a risk!

mike1942f

Because, in most systems, you were getting a discount for being an accident free driver for quite a time and now you are not accident free. Various companies handle it differently and a couple have actually formalized it in that if you are accident free for 3 years, you get one accident free, etc.

Mary L

i agree, we do spend a lot of money on car insurance what does happening to all that money? Besides goin into their pockets. Even though i think its fair i think i can help shed some light on it. When you first got that quote you got it for good driving record, well now that you have an accident you no longer have that good driving record so now they have to "punish" you and charge you more for a bad mark. I think its bs because i have paid them for years and that is how someone repays me, thats why its good to have insurance that a first accident some companies will look the other way. I have seen the commerical for it. I forgot the name of the company though, i want an insurance compny like that.

Jax

The above answers are correct regarding higher risk, etc. One more thing though, insurance companies do not make money on the premiums that are paid. Over two thirds of the premiums paid are paid out to losses, the other third and more covers the insurance companies expenses. Insurance companies really only make money if they invest money they have. Realistically, especially for things like home and auto insurance, these companies are not very profitable, they usually have to diversify and offer additional lines with lower risk numbers.

BigD

The insurance companies consider you a bigger risk and more likely to have another accident that will require them to pay out. The converse is that you get a discount (no claims bonus) if you don't make a claim

just passing by

because they are getting there money back for your accident. the money you payed before was just money to keep you from getting in trouble with the cops if you get pulled over.
but you had to get two points on your record to make your insurance go up anyways. So that means either two accidents in 3 years or a speeding ticket. DUI is an automatic 2 points and a hole crap load of money and a record that will not go away.

Heron

When you've had an accident and made a claim, the insurance company views you as more of a risk, and raises your rates accordingly. You might call your agent and ask how long you'll need to go without an claim for your rates to go back down.

nashdude

It is based on your future risk of being in an accident. If you get traffic tickets, it will go up. If you get into an accident (one that is your fault) it will go up. If you remain accident-free, usually your rate will go down. My auto insurance gives a 3-year and a 6-year accident free discount. The money you paid in the past is irrelevant because you paid for protection at that time based on your risk THEN, so it has nothing to do with your risk NOW. To lower your insurance rate, make sure you're taking advantage of all discounts available to you (such as good student, safe driver, etc.) and consider raising your deductible. If it is $200 or so, you're probably paying a fortune for insurance. Make it at least a $500 deductible and put the difference in the premium in a savings account if you don't keep $500 on hand for a possible accident. You'd never want to file a claim for $500 or less because guess what? Your insurance would go up!

Pat

Unfortunately that is what the insurance companies are like. I am with you, I don't agree with it but what can we do about it? If we are caught without insurance we are fined, if we have insurance we are at that companies mercy, if we are hit by an unlicensed uninsured driver we pay. Doesn't make much sense but it is legal.

Robert B

Yes, if it your fault.
When you have a at fault accident, you are more of a risk than someone who does not.
Put it this way, you could make a few monthly payments, say $100 amonth for three months and have a $10,000 accident.
They have paid you $10,000 for your measly $300.
Now who gets the short end???
No one likes to pay insurance , but to understand how it works gives you the knowladge of the beast.

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