After a road traffic accident, there are a number of factors that can affect future auto insurance rates for the at-fault driver and other third-party drivers. Accountability, however, can make the difference between a small hike in the cost of auto insurance quotes and having to find a small fortune when a policy is up for renewal. Motorists should always be aware of the primary factors that can increase auto insurance rates.
Firstly, an auto insurance company will establish which driver was responsible for the accident. The at-fault party will inevitably face an increase in auto insurance costs for the foreseeable future while the aggrieved party will rarely be punished at all. However, this is a typical scenario for Tort states and those living in no-fault areas may find that auto insurance rates will increase simply because a claim has been made on their own policy.
Naturally, auto insurance quotes will only rise significantly if repair costs after an accident are relatively high. Smaller collisions will inevitably see a hike in auto insurance rates but they should not be too excessive. Unfortunately, applied auto insurance discounts will usually be lost for a period of several years before they are implemented again.
Multiple collisions in a short time period will attract the highest increase in auto insurance rates. Drivers are advised to adopt a safe and sensible approach to vehicle use and, wherever possible, complete an advanced driving course so their skills can be honed to perfection.