A car insurance company expects that some of its policyholders will make claims during the year. Someone who causes more than one collision in a year, though, could be at risk of increased premiums or nonrenewal of the policy at the term’s end. You may find out more about how insurers view multiple incidents by consulting an independent auto insurance agency in Sun City West, AZ.
Many insurance company underwriters actually look at a policyholder’s accident rates over a longer time frame, which can be even more problematic. Three years is fairly standard.
The company may not raise rates or refuse to renew a policy if the person causes two accidents in one month, for instance. However, it might do so if the policyholder causes three accidents in three years. Two accidents in one month with no other incidents in the next three years may be viewed as a fluke. In contrast, one accident every year for three years may be considered a pattern that indicates the policyholder is a high-risk driver. A representative with an auto insurance agency in Sun City West, AZ, can explain further.
Paying on Your Own
If you are afraid of these consequences for your car insurance policy, you have the option of paying for repairs yourself. You will need to have the owner of the other vehicle agree not to report the incident to his or her insurance company or to yours. Usually, that means paying for repair work almost immediately because this individual may have no reason to trust you. In the future, it’s essential to practice smart driving habits to avoid causing collisions.