It’s no surprise car accidents cost drivers a pretty penny, but many people are unaware that expensive insurance surcharges stay with them for years. For millions of drivers, this results in thousands of dollars in additional expenses over time.
Drivers between 40 and 60 pay the lowest average premiums of any age group, according to Fox Business. However, should a driver within this age group get into an accident, that person can expect to pay insurance surcharges amounting to thousands of dollars in additional fees over time.
“Many consumers underestimate the consequences of making claims because they can affect your rate for years,” Laura Adams, a senior analyst at InsuranceQuotes.com, told CBS News. “If you get a premium hike for making a small claim, that could hurt your finances over the long run.”
After an accident, some insurers add an additional 40 percent or more to a driver’s base policy, which increases payments by that much. Others use complicated internal points systems that group the person making the claim in a pool with other high-risk drivers, reports 360 Financial Literacy. Drivers who cause additional accidents end up in an even higher-risk pool.
A single accident claim greater than $2000 will result in a 41 percent insurance surcharge on average, according to a study from InsuranceQuotes.com. This number also varies by state, as people in Massachusetts can expect to see excruciatingly high hikes of as much as 76 percent, according to CBS News. If the driver is in a second accident within a short timeframe, that person could see their insurance premiums skyrocket up to 150 percent more than the original cost.
Due to a number of variables, including the state where the person is insured, the insurance carrier and the severity of the accident, it can be hard to calculate exactly how much extra a person will end up spending. However, if an over-45 driver pays the average annual insurance rate of $1,929 per year, an average surcharge of 41 percent over three years will inflate that person’s bill by nearly $2,400 over time. A second accident could cause that number to spike as high as $8,600. These are merely averages, and millions of drivers experience surcharge hikes much greater than these.
A single accident can raise a driver’s insurance rate significantly, yet many times, drivers fail to take precautions until it is already too late. Most car accidents are completely avoidable.
Safe Drive Systems’ unique RD-140 protects drivers against up to 90 percent of accidents by providing safeguards, using radar technology to detect danger. The Forward Collision Warning System detects vehicles and obstacles that could endanger a driver on the road, while the Lane Departure Warning System ensures drivers stay between the lanes while driving. SDS’ innovative radar-enabled technology system starts at only $69 a month, with a lifetime cost of under $1250.
With insurance premiums already higher than ever, no one wants to shell out the extra money that comes from a rate hike that was the result of an avoidable accident. It only takes a split second for an accident to change your life forever.
If you could save yourself thousands of dollars, why wouldn’t you?