By Jim Bassett

Every day, a lot of things happen unexpectedly. It can be a good event or a bad one. Just like when you are driving, you will never know if you will meet an accident any moment. Whenever you meet an accident while you drive on the road and you are insured, there are many things that will happen to your policy. Accident affect insurance greatly and if you want to know more about it, continue reading.

Accidents make your car policy rates increase. This is especially if it is repeated many times and the one who caused the unfortunate event is you. If you are at fault and you are insured, your insurer will shoulder the expenses incurred by the accident but this depends on your policy. If you are well covered by your insurer, you won’t have to worry because the insurer will aid you financially.

But, after the event you should expect that there will be a raise on the repayments of your policy. This is because you have a high likelihood of meeting an accident again. If you are not the driver at fault, you will be excused for the first time and there will be no increase on your policy payments. But, if it is repeated then something is probably wrong with your driving. Expect some increase in payments on your insurance.

If you are known to have previous records of road mishaps and you need to get a new policy, again the company will charge you with higher fees. Compared to those motorists who have no records of road and traffic violations the premium that will be offered to you has higher rates. You have no choice but to buy such because if you remain uninsured and the authorities will find out, you might be banned from driving forever.

Aside from records of multiple road violations, another scenario that affects policy is your record of alcoholism. If you are known to be an alcoholic or you declare it when you obtain a policy, you will have higher rates again. This is because of the increased likelihood of drunk driving that will usually result to road accident. Policy providers will not have any second thoughts on giving you and expensive premium.

The events above will not only cause you for an increase on your policy repayments. It will also send you to prison or you will be banned from driving forever. Your car will be confiscated and if you can’t claim it for the specified number of days given to you by authorities, they have the right to junk it and take it from you forever.

Ignorance of the law is never an excuse therefore, if you want to do away with paying so much fees especially expensive ones, be a responsible driver. Learn by heart the rules that govern driving so that you can apply it every day and do away with road mishaps. Remember that prices of goods and services these days are very expensive and if you get involved in road accident, you will be liable to pay for many fees. Medical fees as an example will drain your money if you are not insured well and you drive recklessly.

Now that you have information on how accidents affect insurance, what will you do? Will you continue your bad habits in driving or will you now drive responsibly to protect yourself from losing everything that you have? Always bear in mind that having a lot of financial responsibilities is a great burden these days because of the expensive commodities in the market.

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Source:

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