Insurance Costs After An Accident In Florida - Cheap Auto Quotes
Though Florida is a no-fault insurance state, this does not mean that an at fault driver won't have to worry about his or her insurance rates rising, after an accident. This notion seems to confuse drivers not used to Florida's no fault policy more than almost any other statute. Put simply, Florida no fault insurance means that an at fault driver can't be sued by an injured party, unless the medical costs exceed the ten thousand dollar no fault threshold.
Thus, the no fault system is a double edged sword. On the one hand, a driver involved in a minor wreck causing bodily injury is protected from all but the most extreme lawsuits. Yet on the other hand, a driver who was obeying the rules of the road will still have to use his or her own insurance after being struck by a careless motorist. The worst bit however, is this. Since both parties used their own insurance to cover their respective damages, the insurance costs for both drivers will go up.
Assuming that you have not had any recent accidents, your insurance cost is likely around the so-called “base rate”. The base rate is a mean figure used by insurance companies to determine the average cost of insuring a driver in that state, before any kind of discounts or premiums are added. Once you have an at fault accident though, a “premium” may be added to your insurance rate so that it rises above the base rate. In many cases the rate will rise somewhere around twenty-five to thirty percent. In other words, your insurance costs may be a third higher than what you paid prior to the accident.
Unfortunately, many auto insurance companies are free to raise their premiums as much as they see fit and some policies come with hidden fine print that will ensure a skyrocketing premium over the base rate even after one accident. Thus, it is important to fully review any and all contract and policy information before signing on with an insurance company.
Many insurance providers have now begun to offer what is known as “accident forgiveness”. This program, found in more companies each day, allows a driver to have an accident without their rates going up. The idea here is that everybody makes mistakes and a very occasional accident is not cause for a hiked premium, provided it remains very occasional. This is a good “backup” to have and is worth looking into. Consult and research your insurance company and find out some of the special offerings that you may be privy to. After all, accidents happen each and every day.
