While many individuals believe that a Chattanooga motorcycle accident’s impact on insurance rates will be negative, this is not always true. Insurance rates do not always go up after an accident–in fact, many minor accidents may not even translate to an increase to one’s rates. This is even more likely when an individual has a history of safe riding.
Rates are assessed based on fault. If the driver is not at fault, his or her premium will likely stay the same. Some insurance policies also include accident forgiveness and reward an individual for safe driving patterns. This can work to reduce their insurance coverage. Know that a professional accident attorney can assist you in determining a Chattanooga motorcycle accident’s impact on insurance rates today.
Rates do sometimes go up following a motorcycle accident when the accident is major and the person was at fault. A Chattanooga motorcycle accident’s impact on insurance rates will depend on the individual’s driving record, their history of accidents, and breaking any traffic laws. Insurance rates do not necessarily stay as high as long following a motorcycle incident because motorcycle accidents are not as likely to cause bodily injury as an accident in a vehicle.
The insurance company will factor in the severity of an accident, along with the damages to property and bodily injury when calculating the subsequent insurance payments. An individual’s accident surcharge will gradually decrease each year he or she goes without another accident. In many states, the surcharge is for three years before the insurance company has to return the insured to their previous rate.
The most important factor in determining a Chattanooga motorcycle accident’s impact on insurance rates is who was at fault. Many times it is not black and white as to who is at fault. When both drivers did something that led to the accident, that gets into a gray area called comparative negligence. Generally, it is not a clean 50/50 split of who was at fault. It is then up to the adjusters and attorneys to agree on what percentage fault that is.
Another factor that is important when examining a Chattanooga motorcycle accident’s impact on insurance rates is whether or not it was a minor or major accident. Minor accidents that do not cost the insurance company much money are not going to increase anyone’s rates by a great deal. However, Major accidents that do cause significant property damage or bodily injury will trigger an increase in insurance rates because the insurance company has to determine what risk is appropriated for an individual driver.
One of the most surprising factors that many do not take into account in understanding a Chattanooga motorcycle accident’s impact on insurance rates is the effect that someone’s credit history can have on their insurance rates. Many insurance companies today will run credit reports to determine the risk profile for their insurance.
The credit history has a very significant impact on how the insurance company manages its risk. The insurance company equates an individual’s taking of financial risk with taking vehicular risk, and thus putting him or herself in a situation that is more likely to lead to an automobile accident. For this reason, it is important for someone to understand their credit history and the impact it can have on their insurance rates.
To learn more about a Chattanooga motorcycle accident’s impact on insurance rates, retain the experience of a dedicated accident attorney today.