Sometimes an accident affects insurance premiums in a negative way and sometimes it doesn't.
Depending on the underwriting guidelines of the policy holder and the details of the collision, the affects could range from no change at all to an increase in rates or the non-renewal of a policy.
There are a few facts that need to be considered.
If the policy holder was at fault for the accident, then a number of things could happen.
The driver could lose the discount given for being a good driver.
There usually isn't an increase in monthly rates when the policy holder isn't found to be at fault.
Of course more repercussions will be felt if the policy holder is at fault and there were injuries sustained.
As soon as an insurance company has to dole out money for medical bills, this doesn't make them very happy.
The impact on the existing insurance policy will be much less if no injuries were sustained.
Violating the law, by being issued a DUI or DWI will have a significant impact on the monthly premium amount.
In fact, if the driver was under the influence of either alcohol or drugs, then this is considered to be a major violation of the law.
Sometimes when the damages are very low, insurance companies will dismiss them and no impact will be felt on premiums.
Most companies dismiss damages that equal to 750 dollars or less.
These are generally mild fender benders.
Having a number of accidents in a short time period can affect a policy to the point of greatly increasing the monthly rates or possibly causing it to not be renewed.
The time period and number of accidents allowed during this time frame will vary between insurance companies.
If one company decides to not renew the policy of a driver, then this individual will have to apply for insurance through another company.
However, this new company will receive a Motor Vehicle Report which lists all accidents and tickets for the driver in question.
Depending on the circumstances, an accident affects insurance rates differently in each state.
An insurance company in one state may only go back 3 years, when viewing a potential policy holder's driving record.
There are other states that may require insurance companies to view driving records that span a total of 10 years.
Be sure to report an accident as soon as it occurs, in order to eliminate the possibility of violating your insurance contract.