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Does a Accident Cause My Car Insurance to Go Up?
Jeff Ryan - CLU, ChFC, AIA, CIC, CPCU
July 10, 2022
Car Insurance Costs is Dependent on Several Factors
The answer to this question is going to depend on several factors:
- The state in which you reside - Insurance Departments approve how insurance companies can weigh rating variables.
- Are you applying for a new policy following the traffic ticket? Or do you already have an auto policy in place?
- Your insurance company’s renewal practices - does your company run Motor Vehicle Reports (MVR) on renewal?
- The type of traffic ticket - Minor violations may have little to no impact.
In New York, most companies will forgo requesting updated Motor Vehicle Reports on renewal unless they have some apparent reason. The majority of companies pass on rerunning MVRs because of the cost. New York charges insurance companies to request that data.
Another reason our state’s carriers typically pass on this practice? A minor violation does not affect one’s rate nearly as much as other factors. What are the significant factors influencing what you pay for car insurance? See our blog article: What are the Primary Factors That Cause My Car Insurance to Go Up?
This article may have been originally published at Quora.com.
To see Jeff's Quora.com profile click here.
“Am I covered if I drive someone else’s car?” Or, “Am I covered if someone else drives mine?”
Many don’t realize that the insurance industry is one of the country's most regulated business segments, especially in New York State. The New York State Department of Financial Services (NYS DFS) wields significant control over the insurance business and has a stated goal of protecting consumers.
Most property insurance companies offer Actual Cash Value or Replacement Cost settlement options. Typically, insurance companies will require that you insure the property to the settlement value you choose. If you select Actual Cash Value, the amount you may be required to insure the property for will be less than the corresponding Replacement Value.
In that spirit, the Ryan Agency is sponsoring a Stearns BBQ Dinner pickup at our office on 57 Broadway Mall in Hornell on September 12th from 3:00 PM to 4:30 PM.
Today, an individual’s credit history can play a more significant role than any one of those traditional factors. Good Credit Scores lead to a Positive Insurance score. A good Insurance Score greatly influences what someone will pay to insure their vehicles.
Insurance companies offer various discounts for which their policyholders may qualify.
Great Eight number Six (6) suggests taking a look at removing Comprehensive and Collision on Older Vehicles.
By reducing the number of claims in your insurance history, you can significantly affect your rates in the future.
Sometimes, this concept meets with resistance from policyholders. The thought of paying more in the event of a claim is off-putting to some. Even if that means I pay more for my insurance.
OK. Admittedly, this strategy doesn't benefit everyone, but it can be very beneficial for those it does. You may have unique home or auto insurance needs that prevent you from bundling with the same company. Alternatively… you might have a better rate without the bundle discount by splitting up your insurance between multiple carriers.
