If you ask about an accident, does it affect your car insurance policy in Fargo? Some policyholders are nervous about filing a claim because they worry it will increase their rates. However, the answer is not always straightforward and can vary depending on the circumstances.
Does Asking About a Car Accident Affect Your Auto Insurance Policy?
First and foremost, it’s important to know car accidents are a common occurrence in Fargo, just like any other American city. Insurance companies are well aware of this fact and have processes to handle claims efficiently. As a policyholder, it’s your right to file a claim when you have been involved in an accident.
You may be able to ask your car insurance company questions about an accident, but if you aren’t willing to provide identifying information such as your policy number or driver’s license, you may not receive the most accurate answers, or they might not answer your questions at all.
Factors That Determine if Your Insurance Rates Will Increase
The good news is that simply asking about an accident usually won’t affect your insurance rates. However, several factors can impact your premiums, including:
- Severity of the accident: If the damages and injuries are minor, your rates may not be affected at all. However, if the accident is severe and results in costly repairs or medical expenses, premiums are likely to increase.
- Who was at fault: In most states, insurance companies use a fault-based system to determine who is responsible for damages. Your rates will likely increase if you were found at fault for the accident. However, Minnesota and North Dakota are the rarer no-fault states. Learn more about what that means here.
- Your driving record: If you have a history of multiple accidents or traffic violations, your insurance company may view you as a high-risk driver and raise your rates accordingly.
- Type of coverage: Your coverage can also affect whether or not your rates will increase.
Key Takeaways
Overall, we want to emphasize the importance of reporting accidents to your car insurance company and encourage you to feel comfortable doing so. Whether or not your rates will increase depends on several factors, and simply asking about an accident without providing any details does not automatically result in a rate change.
Contact Fargo Moorhead Insurance today to learn more about how we can help you navigate the claims process and find the best coverage for your needs.