Unless an accident forgiveness program is in place, auto insurance premiums will inevitable increase if a motorist is involved in an ‘at fault’ road traffic accident. There are a wide number of potential outcomes to an ‘at fault’ accident and having a thorough understanding of them will raise a number of situations where increased or additional cover should be purchased.
Irrespective of whether a US state operates under the Tort or no-fault insurance system, there will be a minimum level of auto insurance coverage which should be purchased by all motorists. Although a very small number of states will allow for proof of financial responsibility instead of a valid auto insurance policy, it is usually more prudent to increase your level of protection to comprehensive cover, especially if you own a vehicle that is less than three years old. Comprehensive insurance cover can vary greatly from company to company so motorists are advised to read the terms and conditions of their policy in detail before committing to a purchase.
Although most motorists remain cautious behind the wheel of their vehicle, it is impossible to account for the actions of other road users and the more time an individual spends on the road, the higher the chances are that they will be involved in an accident. Motorists who have shown loyalty to a single insurance company over an extended number of years should opt into an accident forgiveness scheme as a means of protecting themselves against increased premiums should the worst ever happen.
If a motorist lives in a Tort state, premiums are likely to be unaffected so long as they are not found to be at fault in a road traffic accident. In no-fault states, a motorist will claim on their own policy irrespective of who was at fault in an accident. This means that a premium could rise significantly on renewal of a policy even if the motorist wasn’t responsible for the accident