Auto accidents can be costly experiences. They cost us time off work, repair damage to our vehicles, perhaps the lives of drivers or passengers, and in some instances may cost us time in freedom because of negligent or criminal driving behaviors.
But if you think those costs are limited only to serious accidents, think again.
About Car Insurance
Even in minor accidents – like a bent bumper or fender – auto insurance may be available to a driver, but filing the claim is not automatic for some people. Many people believe that any and every insurance claim will adversely impact their insurance premiums, so they will hold off on filing a claim until they absolutely have to because they don’t have enough money to cover the repair.
Auto insurance is there to repair vehicles and pay out settlements when you are at fault without sacrificing any of your personal assets. Insurance protects your family and your assets. We pay premiums in order for the insurance company to pay for our fault and our damage.
Splashing in the Pool
Insurance companies have a pool of money, where policyholders’ premium payments are placed. This pool is where payouts are made on insurance claims. The premiums that are paid by policyholders are determined based on coverages, driving records, ages, locations, and vehicles of those who are on the policies. The premiums fill up the “pool” by which the insurance company pays on claims in that part of the country. And the actuaries at the company determine those premiums based on the chances of a major payout, accounting for profits and overhead.
If a particular area of the country has a higher rate of claims than expected, then the rates will go up for all policyholders in that area – even if 90% of them have had clean records. Everyone pays into the “pool” model. And the insurance companies often have their own investigators and attorneys either to fight for the policy holder or fight for the insurance company whenever a legal claim is filed in an at-fault accident situation.
Answering the Question
So if we ask, will my single auto accident raise my insurance premiums? The short answer is, it depends. There are many factors that come into play, but more often than not, no single accident raises premiums; it is often a collection of claims over a period of time (at a cost-per-claim rate higher than expected) that will usually raise premiums.
While insurance companies can and do represent policyholders in legal claims, they don’t do it exclusively, and they certainly won’t do it if you are at fault. It is a good idea to consult with one of our Memphis attorneys to get all the information and make sure you have representation to stand up for your specific rights, knowing that the insurance companies’ attorneys will have their own interests at heart first.
Don’t give up defense of your rights to someone else, even if you are on the same side.
If you have been in an auto accident, have been injured, and are in need of a lawyer, do not hesitate to contact a car accident attorney today. The team of attorneys at Memphis Law Firm is experienced in car accident cases and will help you get the settlement you deserve.