Car accidents can affect your insurance rates for years

(InvestigateTV) — A recent study by Bankrate found that comprehensive auto insurance increased by 26% last year, and that increased for many people who were involved in one or more car accidents.

Bankrate analyst Shannon Martin said this one incident could push interest rates higher for three to five years.

“If you’re involved in one accident, you’ll see an increase of about 43%, which would bring your premium to about $3,299 per year with full coverage,” Martin added.

Martin also said there doesn’t have to be another driver involved. If a driver skids on ice or swerves to avoid an animal and hits a tree, they could still be found at fault by their insurer.

Inflation also continues to impact labor and parts costs for vehicle repairs, pushing up costs. Martin said the cost of those repairs is still about 20% higher than it was before the pandemic.

“I always recommend people look at their policy and make sure it’s accurate,” she advised. If there’s been some change, like a career change, graduating from college, moving, those things can affect your rate, so you might see a lower rate just by making sure everything is accurate. Comparison shopping is always a good idea, most carriers have increased their rates, so you might not save as much now as you did a few years ago.”

Martin said not every insurer is right for every driver, so consumers should make sure their insurance company meets their needs and fits their budget.

Being prepared is the best policy, she said, so build an emergency fund in case something happens. That’s the definition of an unexpected emergency expense.

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