How a Highway Accident Can Affect Your Premiums

Introduction

How a Highway Accident Can Affect Your Premiums: Getting into a highway accident can shake up your life—not just your safety but also your wallet. Regarding insurance premiums, these accidents can lead to profound changes in what you pay. Transport Canada has discovered that over 25% of serious insurance claims are related to highway accidents. That’s why it’s so important to understand how these accidents can impact your insurance costs.

Recent Government Data on Highway Accidents

Let’s look at some fresh numbers. The Government of Alberta’s 2023 Traffic Safety Report shows that highway accidents jumped by 12% last year. What’s causing this? Most people look at their phones while driving and push the speed limit too far. Because of this increase, insurance companies scrutinize how they set their prices for drivers in highway accidents.

Immediate Impact on Your Insurance Premiums

Picture this: You’ve just been in a highway accident. Your first worry might be your car, but soon, you’ll notice changes in your insurance bill – especially if you were at fault. Insurance companies see highway accidents as more significant risks because they often cause more damage and hurt more people. Your insurance costs might jump from 20% to 40% after the accident. The exact amount depends on your driving history and how bad the accident was.

Factors That Determine Premium Increases After a Highway Accident

How Serious Was the Accident?

• How much did it cost to fix everything?
• How many cars were involved?
• Did anyone get hurt

Your Track Record Behind the Wheel

• Have you been in accidents before?
• Are there any tickets in your history?
• How long were you accident-free before this?

What Kind of Insurance Do You Have?

• How does it affect your collision coverage?
• What changes happen to comprehensive coverage?
• What about your liability protection?

Long-term Effects on Your Insurance Profile

Think of a highway accident like a long-term houseguest – it sticks around on your insurance record for up to six years. Your insurance company looks at:

• When the accident happened
• How you handled everything afterward
• What steps did you take to become a safer driver
• Whether you took any extra driving courses

Strategies to Keep Your Premiums Down: Highway Accident Can Affect Your Premiums

Good news – you’re not stuck with sky-high premiums forever. Here’s what you can do to help lower them:

• Sign up for a defensive driving class
• Get a safe driver-tracking device in your car
• Choose a higher deductible
• Put all your insurance policies with one company
• Keep your driving record spotless from now on

Frequently Asked Questions: Highway Accident Can Affect Your Premiums

Question 1: How many years will a highway accident affect what I pay for insurance?
Answer 1: Most insurance companies consider accidents to last 3-6 years when setting rates. The exact time depends on your insurance company and where you live.

Question 2: Can I dodge higher premiums by switching to a different insurance company after a highway accident?
Answer 2: It’s a nice try, but no luck here. Your accident follows you on your driving record, so new insurance companies will still see it when setting your rates.

Question 3: What if the highway accident wasn’t my fault – will my rates still go up?
Answer 3: Usually, not by much. Most insurance companies wouldn’t raise your rates significantly if you weren’t at fault, though some might still consider it when looking at your overall risk.

Question 4: How much more will I pay for a minor fender-bender versus a major crash?
Answer 4: There’s a big difference. A major highway accident might bump your rates up 40% or more, while a minor scrape might only mean a 10-20% increase.

Question 5: Can I do anything right after a highway accident to keep my rates from shooting up?
Answer 5: Absolutely! Take plenty of pictures, obtain a police report, and consider enrolling in a defensive driving course. These actions can help minimize any potential increase in your insurance rate.

Conclusion: Highway Accident Can Affect Your Premiums

A highway accident can shake up your insurance rates, but now you know what to expect and how to handle it. Stay safe on the roads, and if you get in an accident, use these tips to keep your insurance costs under control. Remember, good driving habits are your best defense against high premiums.

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