How to Find Affordable Car Insurance After an Accident

If you’ve ever had the misfortune of getting into a car accident, you were likely further disappointed when you noticed that your car insurance rates increased.

Whether you cause an accident or another driver does, being involved in a crash is very likely to raise your monthly bill. Some companies increase insurance rates by 10% or more after an accident, so the difference is significant and might give you a good reason to make a change.

In particular, you can lower your auto insurance cost in several ways. This comes down to understanding the factors affecting your price range and looking for solutions accommodating your unique situation.

To help you find affordable insurance after being in an accident, we’ll take a look at the four proven strategies below.

Adjust Coverage

One of the easiest options involves adjusting your current insurance coverage.

Depending on the insurance coverage you have, you may be able to make a few adjustments. In particular, you can either increase your deductibles, eliminate optional coverages, or settle for lower coverage amounts.

As you can imagine, neither scenario is very appealing. In addition, all three choices will result in you paying more for repairs in the future, so paying less on your premium now comes at a higher cost down the road.

Realistically, you do not need full coverage to drive. Some coverage limits are unnecessary, and your car may not be worth insuring for comprehensive coverage.

Consider if all the insurance coverage you have is essential. If not, you’ll undoubtedly save some money by eliminating it. Just remember this does increase your overall liability.

Seek Discounts

If you want to stick with your provider, you can seek discounts for a lower premium.

Most insurance companies offer various discounts that make their coverage more attractive. Some standard discount options include savings for multiple policies, being a good driver, being a customer for several years, being a student, and driving a safe vehicle.

Discounts can be anywhere from a few dollars to several hundred. The savings can be significant, but they depend on your provider and what they’re willing to offer.

It doesn’t hurt to ask your insurance provider if there is any way to lower your bill through discounts. Saying yes allows them to save a customer, and rejection means you’re free to pursue other avenues.

Compare Providers

Alternatively, you can compare quotes to find a new provider altogether.

Changing your coverage isn’t a great choice, and there may not be any special discounts available from your current provider. You may also be unhappy with them raising your rates.

In this situation, a new insurance provider can serve as a fresh start. In addition, your introductory rate will factor in your accident, so you can feel confident that it won’t also increase.

You are often categorized as a high-risk driver when you get into an accident. This means that you’re more likely to file a claim or get into an accident in the future, which makes you more expensive to insure. This is why your rates go up with an accident.

Considering this, many insurance companies offer extremely high rates to high-risk drivers. But on the other hand, several companies offer reasonable rates to high-risk drivers.

It would help if you looked for insurance companies that deal with high-risk drivers to find the best rates. Your experience with insurance may not change with a new provider, but the price certainly will.

Improve Credit and Driving Record

While not an immediate solution, the most effective strategy involves improving your credit and driving record.

These are two of the most critical factors that affect the price of your insurance, assuming that you are beyond the age of 25. If not, age and gender are also highly impactful.

With this in mind, having a poor driving history or low credit will result in higher insurance rates. In addition, an accident negatively affects your driving record, so you must be careful to avoid worsening it.

If you can improve your credit and driving history, it will show that you are responsible and safe. This will make you a lower-risk driver, resulting in cheaper insurance premiums.

Doing this will likely take several months or years, so it should serve as a long-term goal. However, pursue other options in the meantime to reduce your insurance costs as you work toward it.

Closing Thoughts

After getting into an accident, the last thing you want to deal with is a higher insurance rate. But, unfortunately, most accidents will raise your rates regardless of who caused the crash.

If you fall victim to this, you need to know how you can find a lower rate. Your options include adjusting your current coverage, seeking discounts from your insurance provider, looking for a new provider, and slowly improving your credit and driving history.

Car insurance is expensive, but it’s a necessary cost if you want to drive. Workaround this and find a solution that fits your budget while offering all the required insurance coverage!

Oscar Rojas
Oscar Rojas

I'm primarily a dad and a husband, then I live. I've been a freelance writer and editor since 2014, specializing in finance, casino, sports, and esports niches. I'm an expert in checking the small print on any T&C site. You can trust me as an expert, especially when it comes to financing and gambling products.