Car accidents are very expensive. The cost of injuries alone can reach six figures after an accident. Not to mention all the other costs like property damage, lost wages, and pain and suffering. Typically after you’ve been in an accident, your insurance premiums will go up.
This is because the insurance company now sees you as a higher risk than before the accident. If this increase is too much of a financial strain, do not worry there are some things you can do to get it back down in California.
One of the first things you can do is work on improving your credit rating. Insurance companies see credit ratings as an indicator of responsibility. Therefore, insurance companies factor in your credit rating as part of your risk factor. If you need your premiums to go down, consider working on getting your credit rating up.
Another option is to change your policy. There are two primary ways to decrease the cost of insurance.
The first is to increase your deductible.
A deductible is the amount of money that is paid out of pocket before your insurance kicks in.
Secondly, you can lower your coverage limits.
Your coverage limits are the total amount your insurance company will pay if there is an accident. You can do both of these things in tandem as well.
However, do know that if you choose this path, you will have less coverage for the future which can be a problem if you get into another accident.
“Accident forgiveness” is a program that some insurance companies have for a driver’s first accident. This program is designed to help keep your first accident off of your record.
That way you aren’t overly penalized if you are generally a good driver. Some companies offer accident forgiveness automatically as part of their standard policies, while others require you buy the program.
If it’s your first accident, ask your insurance agent if you qualify for accident forgiveness.
If you have an expensive vehicle, it costs a lot to insure. That is because the replacement value is much higher than other vehicle options.
A good strategy is to trade in your vehicle for a more affordable model, specifically one with a high safety rating. This will help lower the risk to the insurance company and thus, lower your monthly premium.
These strategies will help you reduce the cost of your auto insurance after an accident. However, one of the best ways to get your premiums down is to change carriers.
The California team at Panorama can help. We work with multiple insurance companies and can provide you with a number of quotes to help you find the best price.
We’ll help you find a lower rate than what you are paying that still offers a high level of coverage. Give us a call at 818-781-6630 and we’ll get started right away.