If you’ve been in an auto wreck, you may be wondering if you can get insurance after an accident. Buying car insurance after an accident shouldn’t be a pain, but it depends on your age, gender, personal driving history, how much coverage you want to buy, and what rates you’re willing to pay. While an at-fault accident will affect your car insurance rates, a collision where you aren’t liable or at-fault should not impact your premiums. Therefore, in these types of cases, changing or switching insurance companies after an accident shouldn’t be a problem.
However, getting cheap car insurance after an accident requires that you had coverage before the wreck. Because all states in the US require that drivers carry an auto policy and a minimum amount of coverage, driving with a lapse in car insurance can be grounds for denying your application. Similarly, attempting to purchase post accident insurance or adding collision coverage after a crash when you didn’t have protection to begin with isn’t going to work.
Read on to learn more about getting insurance after an accident and how you may be able to lower your rates even after an incident.
- 1 Can I Buy Car Insurance To Cover Preexisting Damage?
- 2 How Do I Get Car Insurance After An Accident?
- 3 Switching Insurance Companies After An Accident
- 4 High Risk Auto Insurance Coverage
- 5 How To Lower Your Car Insurance Rates After An Accident
Can I Buy Car Insurance To Cover Preexisting Damage?
If you’re trying to buy coverage after getting into an auto accident and think your new insurance company is going to pay for your claims, damages, and injuries, then you’ll be very disappointed to learn that no carrier will pay for your previous collisions.
While it would be nice to have auto insurance that will pay for prior damage to your vehicle, the reality is that insurance companies do not offer this type of coverage. Insurers base the premium price of their coverage on a number of key factors, such as your driving habits, prior accident history, and make and model of your vehicle. In doing so, the provider determines just how much of a risk it may be to provide you with coverage.
So, if an insurer were to provide coverage for damage that took place before a policy was purchased, it isn’t likely that the company would be in business for very long, as they would be paying out claims that they are not technically responsible for paying.
Can You Add Collision Insurance After An Accident?
Similarly, if you don’t have full coverage car insurance before your accident, you can’t add collision insurance after, especially in the case of an at-fault wreck.
How Do I Get Car Insurance After An Accident?
Although preexisting damage is not covered by auto insurance, you may still be able to purchase a policy for possible future damages and liabilities following an accident. If you are currently insured, it is important that you report the accident to your insurance carrier even if it means incurring a premium increase.
Ultimately, your insurer will find out because all at-fault accidents are reported to the DMV. Plus, this will give you a chance to know how much your car insurance rates are going to go up and allow you the opportunity to start shopping around and comparing prices at different companies.
If you decide to shop for new coverage from another insurer, doing things to improve your driving skills, such as taking a defensive driving class, could be viewed by the company as a positive step. In order to secure new coverage, though, it may be necessary for you to purchase a high risk policy, at least temporarily.
Switching Insurance Companies After An Accident
Switching insurance companies after an accident is possible depending on who was at-fault. If a car accident is not your fault, then changing auto insurance shouldn’t be a problem. You are not liable for any damages or injuries and therefore will not need your insurer to pay out any claims. The bottom line, your driving history should not be impacted and you may still be qualified to buy cheap car insurance after the accident.
On the contrary, if the collision is your fault, then we highly recommend you stay with your current company. This is because any other provider will see the accident on your driving record and charge you much higher rates. Plus, you won’t be able to get a loyalty discount, which may be one of the few discounts you’ll qualify for after a wreck.
Nevertheless, if you haven’t compared rates, companies, and coverage options in recent years, it may make sense to complete a basic insurance comparison online. There is always the chance you may have been overpaying for coverage before and getting free, instant insurance quotes online can give you the peace of mind that there aren’t cheaper premiums available.
High Risk Auto Insurance Coverage
As its name suggests, high risk auto insurance is designed for those drivers who are considered to be more risky for companies to insure. This added risk can oftentimes be the result of multiple accidents or traffic violations, such as multiple speeding tickets or reckless driving. If you get too many points on your license in a short period of time, you may be labeled a high risk driver and required to buy a certain type of coverage.
There are other factors that can also come into play when considering a driver as high risk. These may include the type of vehicle they drive, as well as the individual’s current age. For instance, new drivers and those who are elderly may be included in this category by an insurance carrier.
High risk auto insurance coverage will typically come with higher premium rates. This is due in large part to the insurance company having to compensate for the additional amount of risk it is taking on. In some cases, a high risk auto insurance policy may also come with certain exclusions to the coverage or with various limitations in terms of who is allowed to drive the insured vehicle.
If you’ve been involved in a very expensive auto accident or deemed at-fault in multiple collisions, then you could be considered a high risk to an insurance company, based on the circumstances surrounding the incidents and your past driving record. The good news is that there are still some ways you can lower your auto insurance rates, even as a high-risk driver following an accident.
How To Lower Your Car Insurance Rates After An Accident
There are many ways to lower your car insurance rates after an accident. If you can’t wait the 3 years for your premiums to go down after an accident, then some of these options may be worth considering.
Increase Your Deductible
For starters, drivers may want to increase their policy’s deductible. In most cases, a higher deductible will reduce premiums, with all other factors being equal. If you do choose to raise your deductible, it is important to be mindful of the fact that you could end up having to pay more out of pocket on a future incident.
Other possible options for bringing down the cost of auto insurance include reducing the amount of bodily injury and property damage liability coverage. In this case, be sure that you remain within the minimum coverage limits that are mandated by your state.
You could also consider eliminating comprehensive coverage, at least temporarily. This could also result in cheap insurance rates, but may make you more financially vulnerable if you are involved in a future accident.
Compare Insurance Quotes
You can also shop and compare auto insurance quotes from multiple carriers in order to determine which can provide you with the best coverage for your needs at the most affordable price.
In doing so, you may find that not all insurance companies charge the same prices, even for the very same coverage or type of policy. Therefore, it can make sense to regularly review the amount that you are paying against the amount of coverage offered. Shopping for instant quotes online can make the process of finding the best rate easy and convenient.