If you’re in an accident on the roadway, whether in a car or on a motorcycle, and it’s your fault, your insurance costs will likely go up.
However, what if you have a gap in your coverage and then want a new policy? Can you get one?
The following are things to know about auto insurance after an accident.
How Much Will Your Insurance Go Up?
The first scenario to consider when it comes to car insurance after an accident is just how much your policy will go up in cost if you’re at fault. On average, if you’re involved in an at-fault bodily injury accident or expensive property damage accident, you may see your car insurance rates go up 34%.
It’s tough to give a definitive number as far as how much insurance will go up.
Insurers see an accident or a moving violation as a red flag signaling them to increase your rate.
The specifics that play a role in just how much include where you live, whether you have previous accidents or violations, your age, and your insurance company.
Younger drivers usually pay the most following an accident because they’re already seen as risky customers.
The more damage done in your accident, the more your premiums are likely to go up.
It can take three to five years for your costs to go back down after the accident.
Can Your Insurance Company Drop You Because of an Accident?
It is possible that your car insurance company could cancel your policy after an accident, but it’s rare. It would be more likely if you had several accidents. Your insurer might also cancel your policy if the accident leads to you getting your license revoked, or it’s related to driving under the influence.
In some states, your insurer can cancel a policy within the first 60 days after it’s issued. If you were to have a minor accident in that situation, your policy might get canceled.
Your insurer has the option not just outright to cancel you, but to not renew your policy if you have a history of violations or accidents.
That’s more common than dropping someone who’s considered high-risk. They’ll wait until you’re up for renewal and then either increase your premiums or opt not to renew.
Can You Get Insurance After an Accident?
There are a couple of situations where you might have had an accident and do not currently have insurance. If so, you may wonder if you’ll be able to get it.
In one scenario you might have been driving uninsured and got into an accident. In that case, the first thing to know is that you can’t purchase insurance to cover the damages after the fact.
Another situation would be if you were to let your insurance lapse or not renew it, maybe because it was too expensive after an accident, and now you want coverage once again.
Can you get car insurance if you’ve been in an accident?
The answer is maybe, but it could be expensive. It depends a lot on what state you live in and the nature of the accident you were in. There will likely be an insurance company that will cover you, but it will come at a high price.
If you have a gap in your car insurance coverage, that can in and of itself makes it more challenging to get a new policy too.
Insurance companies view it as a lack of responsibility and they then think that as a result, the chances are greater they’ll have to pay out a claim for you. That means your rates will be higher.
However, once you get coverage and maintain it for at least six months without any violations or accidents, you’re eligible for better rates.
If you have been in an accident and looking for new insurance, finding a cheap option is going o be your biggest challenge.
The best thing to do is comparison shop and see if you can find a company that will offer you an affordable policy and perhaps a discount for doing something like bundling multiple policies. You might also be able to get lower payments by reducing your deductible.
In most situations after an accident, you can find a company to insure you, but you should be prepared to pay quite a bit for that coverage. Also, if you’re in an accident and you don’t have insurance, your new insurance policy will not cover anything from the previous accident.