| There are several people that are afraid of telling | | | | driver has two at-fault accidents in three years, with |
| their car insurance companies about minor car | | | | damages running over 1000 dollars, to face closure of |
| damage for they are afraid of inadvertently | | | | coverage. Again there are preferences accorded by |
| increasing rates. According to Insurance Information | | | | companies, if you are in a standard tier with higher |
| Institute, when no other person is connected, you | | | | rates you may be shown even more lenience. |
| may be tempted to remain silent about a minor | | | | The tier system is a kind of rating that insurance |
| accident. This brings up the question why buy | | | | companies use to evaluate the probabilities that a |
| insurance if you don't use it? This is not completely | | | | driver will get in an accident, which is based on large |
| without a reason. | | | | statistics for a particular tier group. Drivers are |
| The reason is the assumption of petrified people who | | | | grouped in tiers based on factors such as the years |
| assume that there will be a premium increase. It is a | | | | of driving experience, past three years' accident |
| misconception doing the rounds that filing an | | | | history and the kind of car driven by them. |
| insurance claim is bad. At that instance people don't | | | | However, the tier system will not restrict car |
| want to remember that insurance is there to protect | | | | insurance companies to wait for three years or a |
| them and it makes good sense to exercise their | | | | number of accidents to repeal coverages. Be warned |
| rights to use it in such situations too. What actually | | | | that even a single claim could lead to abrogation of |
| happens to your claim depends on who is at fault. Be | | | | coverage. If alcohol is involved, take it for granted |
| warned that if it is your fault, rates could go up and | | | | that you won't stand a chance. Having multiple tickets |
| you may stand to loose lose the entire coverage. | | | | is another for possible non-renewal, even after one |
| Here are some fundamental things you must know | | | | accident. |
| for both before and after filing a claim. | | | | 3. If you're at fault, your rates may increase |
| 1. Get clarifications about penalties even before | | | | Insurance companies don't immediately drop you if |
| buying the insurance | | | | you are the at-fault driver, but expect to see them |
| It is best to ascertain your company's renewal | | | | increase your premium but at the next renewal. |
| guidelines ahead of buying the car insurance. It will be | | | | But what if you have to make a claim when have an |
| ideal to ask these unpleasant questions upfront while | | | | accumulated no-claims bonus? In such cases as this, |
| you're shopping for a policy, that way there are no | | | | you can enjoy the no-claims bonus you have earned |
| surprises. | | | | for each claims free years which accumulates for up |
| In addition, reading reviews from 'Consumer Reports' | | | | to 5 years in general. This can be interpreted as a |
| helps find out how different insurers rate on | | | | kind of give and take strategy. "If you pass years |
| customer satisfaction scales. This helps to identify | | | | without making a claim, you get a discount and if you |
| insurance companies that renew policies before | | | | claim, we get cut off your discount." So it is a simple |
| purchasing car insurance them. | | | | case of more the claims the more are the increases |
| 2. A minor accident may not lead to dropping of a | | | | in raising rates. |
| policy | | | | 4. Aren't there any other considerations |
| A vast majority of people are able to renew their | | | | Insurance companies kind of reward your loyalty by |
| policies without problems and if there are any that | | | | following follow a policy of offering different policy |
| are left out it has to be probably due to higher rates | | | | options to different customers; the number of years |
| of claims filed which are attributable to them.Each | | | | spent with the same insurance company will not go |
| case is different which means it is wrong to | | | | waste. The company may decide to further reward |
| generalize, but it's unlikely that your coverage be | | | | you by way of 'freebies' like no loss of coverage, no |
| closed exactly at your first at-fault accident. Although | | | | premium increase etc. However, all these things again |
| there is no such rule, insurance companies wait till a | | | | are weighed against the number of claim-free years. |