Getting into an accident can be devastating, and as a result, you may find yourself without a vehicle for some time. This can be incredibly inconvenient for people who need to get to work each day. Fortunately, your insurance company can help you cover the costs of your vehicle. However, many people do not consider the fact that damage estimates can end up negatively affecting your insurance rate. Let’s take a look at how this can impact how much you pay each month and what to look out for.
Type of Car You Drive
Car Gurus cautions that driving a fancier car can be incredibly costly. Choosing a minivan or SUV can greatly reduce insurance charges. Not only that, but buying used will also greatly improve your rates. With a luxury or high end vehicle, you will find yourself paying more for premium gas and other services that the car needs. However, damage estimates may end up soaring through the roof if you get into a wreck with a luxury car. Your damage estimate may not end up paying for all the items necessary for repair. Keep this in mind whenever you decide to purchase that fancy car you have always wanted.
How Much is Covered
Getting the full repairs for your vehicle can be a difficult thing to negotiate. Filing a collision claim may leave you with less money than you had expected to get. Cascade Collision Repair explains that most private insurers approximately cover 50% of the claim and since the average claim was $3,350 in 2015, you could be paying thousands in repair out of your own pocket.
Rising Insurance Rates
Many insurance companies may see you as a liability if you get into a wreck. Value Penguin reports that your insurance plan may rise exponentially if you were the cause of the accident. This is important information to keep in mind whenever you are driving on the road. Practicing safe driving techniques is a good way to mitigate potential damages and to stop your insurance rate from rising.
Insurance rates are steadily rising whether we have any control over them or not. Increasing our insurance rates due to unforeseen accidents on the road is something that we have some control over. However, there are many factors to consider whenever you are driving a sports car on the road or have a bad driving record. This information is crucial for people who wish to keep their insurance rates lower. Make sure to use this guide to educate yourself on how insurance rates can rise and be sure to stay safe whenever you’re on the road.