Online Auto Insurance Describes How Accidents Affect Rates

Traffic accident can affect car insurance rates in a couple of different ways. Rates can increase for an individual or the general public.

Online PR News – 21-January-2010 – – Traffic accidents affect the cost of automobile coverage in many different ways; premiums can be raised for a particular individual and numerous collisions caused by the public may cause insurers to raise their rates as well. There are many factors that come into play following collisions and the data is analyzed by carriers to determine whether a rate increase is needed.

In most cases, insurers will base their premiums on the particular area in which the automobile will be covered; motorists who reside in urban and high traffic areas usually pay higher rates than those who live in rural areas. This is because the chance of an accident occurring is much more likely in a location where many vehicles are being operated and in many cases insurers have had a number of losses which have already occurred in these areas and cause them to raise premiums for policyholders in these locations to compensate for claims and the risk of a potential loss.

Individuals can also be directly affected if they have been involved in an accident depending on a few different factors. If a motorist is found to be at fault for causing the collision, they may find a surcharge applied to their premium. According to the state of Massachusetts, a surcharge able at fault accident is defined as a driver operating a private passenger automobile having more than 50 percent of fault and claims exceed $500 in excess of any deductible.


Traffic collisions are bad enough without having to suffer from higher premiums; fortunately car insurance for people with accidents on their records does not necessarily have to be high. In most cases, if a driver is not at fault for causing the collision many companies will not raise their premiums; some states’ laws prohibit companies from doing so. For those who have caused a collision, depending on a company’s guidelines, they may allow one accident before raising a policyholder’s rate. If an individual is facing a raise in premium, their best bet is to compare quotes from other companies to see if a better rate can be found.

Consumers who have been involved in accidents and are having their rates affected can visit to see learn how to find lower premiums following a rate increase and obtain free quotes from a variety of reputable insurers.

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