rate increase after accident question | GTAMotorcycle.com

rate increase after accident question

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acropora1981

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So, this doesn't concern my motorcycle, but an accident I was in 2 yrs ago.

I'm being sued for quite a large amount of money, we have coverage of course. I was at fault, and my insurance rates went up after the accident, and will be up for another year before they go down again.

What I want to know is, does the insurance company raise the rates again after we have had a judgment for that same accident? Like if they get $500 000 for the accident from my insurance company, do my rates go up again because of it?
 
You were in an accident in a car 2 years ago? And what do you mean it will be up for another year before they go down again? You're accident is on your record for 6 years. Just FYI.
 
An accident is on a individuals record for 6 years, BUT, after three years insurance rates are not affected by it even though it still shows
 
I have been told that rates will progressively decrease for 6 years after your crash. The first year you will see a huge increase from the previous year, after which your rates should decrease. After 6 years you should be back to the same rating, and presumably the same premium, as before your crash. This is assuming you have no further crashes and insurance premiums do not go up, which they certainly will.
 
you should not see an increase following a judgement.


r6rollin is wrong

accidents stay on a persons record for 6yrs. an insurance company will surcharge an insuree for anywhere from 0-6 years.
 
The insurance company has likely set a reserve for the claim and already adjusted you're rates accordingly.
It's possible the outcome could exceed the reserve but, I'm not sure if that would impact future rates. I believe there are regulations that cap the maximum amount to increase and when they can do so.

Depending on the outcome (or projected outcome) the insurance company may just cancel at the next renewal date and leave it to you or a broker to shop someplace else. This is generally done when the final claim amount is viewed as something that will never be recovered. Taking into consideration, no matter how long you remain an insured and the possibility you may experience a claim again in the future. So, they may call it a day and let you try you're luck with someone else.

If that happens, you are at the mercy of what the other insurance companies are willing to charge, which may also involve Facility.

So, you may not be out of the woods yet.

I'd just ride it out until the suit is settled/finalized and let the chips fall where they lay.

Good luck.
 
rideitlikeyoustoleit said:
Really? Then why is my insurance still in the 1k/month area? =( LOL
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Is this combined for both car and bike? I hope so...

If after exhausting all insurance companies and driving the cheapest thing to insure, at 1k/month I would just not drive at all.
A taxi @ 10$ a ride, twice a day, 30 days a month comes up to 600$.
 
Even after the accident I am only at $103/month :) I had been told that my rate would go down after the third year from my broker to its original $67/month

I just wanted to make sure that the judgment wouldnt then highly increase my rates. I doubt they will drop me, my broker is a fantasticly nice lady. If its up to her anyway, I'm sure it could be up to someone else.

The claim is bull anyway; everyone walked away, both cars drove away. Minor fender bender = $500 000? I dont think so. He's claiming that he is disfigured from the accident. I doubt it will go to court.
 
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jeero said:
Is this combined for both car and bike? I hope so...

If after exhausting all insurance companies and driving the cheapest thing to insure, at 1k/month I would just not drive at all.
A taxi @ 10$ a ride, twice a day, 30 days a month comes up to 600$.
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Well..its only car. No, it's not the cheapest thing to insure ('07-'09 TL-S). And I've been in TWO accidents (both write offs) when I was 18. After the 2 accidents, my insurance for a TL-S (no I do not own the vehicle yet) was $14000+ a year. Right now it's at around $12000 for the year.

I did get a quote of $6500 for a business truck (2000 GMC Sierra). Still too expensive though. I'll be insured under my parents until I'm 24 =(.
 
rideitlikeyoustoleit said:
Well..its only car. No, it's not the cheapest thing to insure ('07-'09 TL-S). And I've been in TWO accidents (both write offs) when I was 18. After the 2 accidents, my insurance for a TL-S (no I do not own the vehicle yet) was $14000+ a year. Right now it's at around $12000 for the year.

I did get a quote of $6500 for a business truck (2000 GMC Sierra). Still too expensive though. I'll be insured under my parents until I'm 24 =(.
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Dayum, that's balls. Be careful being insured under your parents though, because that's playing with the line labeled "fraud".
I really hope you're not currently playing 12k for insurance. I could buy a really simple, late 80's small 4cyl pickup for 2k in decent shape. I think this should be your course of action. I may be a little biased because I love the S-10's :D

When my record was bad my insurance broker told me pickups were cheapest to insure. The smaller the cheaper.
 
jeero said:
Dayum, that's balls. Be careful being insured under your parents though, because that's playing with the line labeled "fraud".
I really hope you're not currently playing 12k for insurance. I could buy a really simple, late 80's small 4cyl pickup for 2k in decent shape. I think this should be your course of action. I may be a little biased because I love the S-10's :D

When my record was bad my insurance broker told me pickups were cheapest to insure. The smaller the cheaper.
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Can you explain the bolded part? How would it be fraud? =S

And hell no, I would never pay 12k a year for insurance on one car. Not even if I was rich. And no wonder the pick ups were so cheap. I want to pick one up for business but it's not smart and fuel efficient enough.
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