Don’t panic! A fender bender is an unfortunate occurrence, but it usually does not mean that you will lose your insurance coverage. The reality is that filing a automobile insurance claim will probably raise your current premium.
Your auto insurance premium will probably go up after an accident – especially if you were the driver at fault. Studies show that people who have previously had accidents are more likely to have another accident again. Therefore, companies tend to charge you more for insurance coverage because of the likelihood of another claim in the future.
Of course what you really want to know is how much your premium will increase. This is a more difficult question to answer because different insurance companies use different formulas to calculate rate increases. But don’t worry, in almost all cases, your policy will not be cancelled because of one fender bender.
Call Insurance Doctor if you have questions about your automobile insurance policy.