Car Accidents And Insurance Claims

Even though most people have auto insurance policies they are still not aware on how car accidents can affect the same. This also depends on whether the policy holder was at fault or not. If the policy holders are at fault then the amount of the claim, by the insurance company, is reduced. For instance, in some states, if the policy holder was at 50% fault then the insurance company takes care of 50% of the total repair costs. But the remaining 50% has to be paid by the policy holder. Your auto policy will spell out how liability affects claim payouts in your state.

How Is Fault Determined?

After the accidents agents and representatives from the insurance company get in touch with vehicle drivers, the police, and often visit the accident scene. Through these means they determine the degree of fault of the policy holder. The fault of the other driver, in case of car collision, is also analyzed. The level of fault is a very important factor in car insurance. This level determines the type of coverage which is applicable to the accident. It also helps to understand who is to be blamed for the accident. The premiums of the car insurance are then adjusted, as per the blame of the driver. The insurance company claims adjusters investigate the circumstances of the accident. A liability report is prepared which is based on ‘fault determination rules’ for your state.

Factors Related To Fault Determination

When determining the fault of the driver factors like weather, visibility and the point of contact are taken into consideration. Although police citations may be taken into consideration, they are not deciding factors for accident fault. State road laws also play a major factor in determining fault.

Impact Of Car Accidents

Car accidents, mainly the ‘at fault accidents’, can lead to the insurance records raising the insurance rates. The increase in the rate can be anywhere from 14% to 100% at the time the policy is renewed. The ‘at fault’ car accidents in particular can leave their dent on the policy holder’s history for up to 10 years, depending on your state history laws. This also implies that the policy holder has to keep paying for the accident until the same gets off the record. It results in old policies being renewed at higher rates and obtaining cheap rates with new policies becomes difficult.

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