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Little Impact from Accident History

The cost for a new auto insurance policy will have little impact from the accident history of the vehicle, according to industry experts. Insurance companies don’t regularly check the history of a vehicle when you buy a policy. They base your insurance rate on other factors.

The two biggest are the value of your vehicle and your driving record. However, there are also many other factors that can affect rates. Accidents will only impact your insurance premium if you get into them and you are at fault. The insurance company checks your driving history when you apply for a policy. Any accident on your record can affect your insurance rates no matter what vehicle you were driving when you got into the wreck.

80% of All Drivers Overpay for Insurance. Do You? Start Saving Now. If somebody else got into an accident with your car it would only affect your insurance rate if the insurance was in your name. If the accident occurred before you bought the car or other vehicle it should have no effect on your premium.

When you apply for a policy the first thing the insurance company checks is the value of your vehicle. The more your vehicle is worth the more you’ll have to pay for insurance.

The next thing they check is your driving record. Accidents can affect your insurance rate if you are at fault or received a ticket in conjunction with the wreck. Tickets can also cause your rate to increase.

Beyond that insurance companies use a host of other metrics to calculate your premium, but not the car’s accident history. These can include geographic locations, your age, occupation and your credit rating. Most of these factors have little or nothing to do with your vehicle.

The bottom line is that the insurance company pays a lot more attention to the driver or drivers when issuing a policy because most accidents are caused by the driver.

The only way damage will affect your car insurance rates is if it lowers the cost of the vehicle. If that’s the case, it’ll actually lower your premium because your car will be worth less. That also means the insurer will pay less to replace or repair the car after an accident.

Car insurance will only cover damage from accidents that occur while the vehicle is insured. Any extra repairs you have to make because of prior accident damage won’t be covered by insurance. Reading Car Fax online can help you avoid buying a lemon but it won’t save any money on your insurance.