How Much Does Car Insurance Go Up After An Accident?

car insurance

Since car insurance is an essential requirement for driving on Indian roads, it is important to know the different terms and conditions associated with your car insurance policy. One of the most important things to know are the various factors that can cause your premium amount to increase.

How Car Insurance Premiums Increase Post Accident

A car accident is one of the most significant events that can cause your premium to hike up a lot. Not only is a car accident severely traumatic in terms of the pain and injuries you sustain, but it can also cost you dearly in terms of your car insurance premiums, especially if you are found to be the cause behind the accident. 

Your car premiums can be increased if you are found to be at-fault for an accident, which caused either injury or death to a person or damage to a third person’s property. While this is covered under the third party liability insurance, which is mandatory by Indian law, it does result in a surcharge in your premiums, when claims are raised against this policy. The next time you renew your policy, the surcharge will begin to apply. The amount of surcharge will of course, vary depending on the extent of the accident and the damage caused. 

Why your Premiums Won’t Increase Post Accident

While the above describes the cases where your car insurance premiums will increase in case of an accident. There are several kinds of accidents wherein your premiums cannot be increased despite claims being raised against your car insurance policy. Read on to learn what these are.

  1. If your car was hit in a hit-and-run accident
  2. Your car was damaged while being parked legally
  3. Your car was hit from the back by another vehicle, and no case was filed against you for a moving traffic violation

If the car accident you were in is due to any of the above reasons, your insurance premiums will not be subjected to a surcharge by the insurer. Most surcharges that do apply on car insurance premiums, post accidents, only remain in force for between 3 to 5 years but this can also vary depending on the insurer.

Keeping Premiums Low Post Accident

In case you have been struck by a surcharge owing to a car accident that was found to be your fault. There are several ways you can still keep your car insurance premiums low. Read on to learn more.

  1. Look around for discounts:
    There are several discounts and offers that insurers let policyholders avail the benefits of. While opting for a new insurance policy, look around for the different discounts that may be applicable to you and let you reduce your premiums.
  2. Browse for other policies:
    If you feel your surcharge is exorbitantly high, browse around for more car insurance policy options that you can purchase instead. With insurers having moved online, it is now much easier to look for different policies online. Make sure to look around in the market for the policy that best aligns to your requirements. Using the car insurance calculator available on the websites can give you a better idea of how much your ideal policy will cost.

Car insurance policies, available on Finserv MARKETS, start at only 2,072 annually and offer a range of benefits including instant claim settlement, 24×7 assistance, and even cashless services across its range of network garages.