The short answer to the question in the title of this article is “no.” An insurance company may raise the driver’s rates, but then again it may not. The company’s decision depends on what has been discovered following its examination.
What does the insurer examine?
Insurers have some of the employees study the driving history of a driver that has been involved in an accident. Typically, those same employees will study what has taken place over the past 6 years. Some companies ask that the examination cover the driver’s history over the past 10 years.
The employee that has been asked to carry out such an examination must seek evidence that answers this question: Does the examined history show that this particular driver was responsible for other accidents? If that same driver had been found at-fault for other accidents, his or her rates would probably go up. If the driver’s history shows no prior involvement in accidents, the insurance company might issue a warning. It could warn the driver that any involvement in another collision in the near future could lead to an increase in the rate charged for car insurance.
The message conveyed by a driver’s actions
A driver’s actions at the time of an accident can work to keep the insurance rates low for that same driver. For instance, the driver could choose to pay for damages, if the other party has elected not to file a claim. In that case, the driver’s rates would not increase.
That example should not be viewed as a reason for failing to tell an insurance company about involvement in an accident. Any collision should get reported, after it has taken place. Drivers that report such a collision do not automatically face the prospect of paying a higher rate.
Other factors that affect the rate charged a driver with a car insurance policy.
The type of car that has been insured. How old is that automobile? Is it the sort of car that tends to be preferred by drivers that like to get places in a hurry? Is the type of vehicle that seems to catch the eye of car thieves?
Where does the driver travel in that insured vehicle? When does the driver normally take to the road in that same vehicle?
Where does the driver store that insured car, truck, van or SUV at night? Is it protected from the elements?
Personal Injury Lawyer in Corner Brook knows that not all claims result in an increase in the rate being charged the insured car owner. Additionally, not every reported car theft will lead to an increase in that rate. They know that not every act of vandalism or every reported fire causes an insurance company to raise the cost of premiums for the victimized car owner.