The Impact Of Auto Insurance

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You could be the best driver in the world, but the reality is that you are always at risk for an auto accident. That is the very reason why we buy auto insurance in the first place, to help to cover ourselves and to ensure that we are made whole again as a result of an unfortunate event such as an auto accident taking place. The thing that so many people do not know though is the long-term impact that an auto accident can actually have in your insurance policy.

Insurance policies and the premiums that are calculated for you to pay for the right to have the policy are based largely on the location that you live, the car that you drive, driving habits, as well as your record. The driving record is a factor though that can really be a benefit …show more content…

The truth though is that even when that insurance claim is settled, the auto accident is going to stick with you for a very long time. All that you as a driver probably wants to do is to forget that the auto insurance accident ever took place, but your insurance company on the other hand, is not going to forget.

The Impact on a Premium

The biggest area where you are going to feel the impact on an auto insurance accident is in the premium that you pay for your auto insurance policy. When you go through an accident, your insurance company is going to rate it based on the severity of that accident. This is largely going to be driven by the cost to the insurance company in order to make you whole again or indemnify you. When you have a minor accident or a major one, the premium is going to increase based on the points that you have against you on the driving record.

Timing Depends by State

The length of time that an auto insurance accident can stay on your policy and impact your premium in a negative way is largely dependent on the state that you live in. Your motor vehicle record is linked to you at the state level, meaning that your record if you drive in Massachusetts, for example, is with that

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