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Sherri Said:

Need help ASAP. Is it possible to get retroactive car insurance after a car accident?

We Answered:

No.

You can not get insurance after the fact to cover the accident.

If this were allowed...no one would carry insurance. Every one would drive around uninsured and only purchase insurance after a wreck. Then the insurance companies would go bankrupt because they are paying more in claims than they bring in with premiums.

When a policy is in Lapse status...that usually means the premium is due or the policy is in the grace period. (some states have a 10 day grace period to make a payment). If a policy is in the grace period and the premium is paid, the policy stays in force and covers the accident.

Once the policy goes into cancel status...it's done. In some cases you can re-instate the policy but it goes into effect when you make the payment. It does not go backwards.

State Farm will do an investigation into the accident and coverage. However, I expect that they will deny coverage. Your policy probably went into effect when you paid the reinstatement.

So...what's going to happen?

You will have to pay out of pocket for the damage to your car.

The other person will contact your insurance company to present a claim. Once your company completes their investigation, they will deny coverage. The other driver will then settle with their own insurance company under their Uninsured Motorist Coverage.

Once the other driver settles with their own company for any property damage and bodily injury - their insurance company will contact you for repayment. The insurance company will set up an interest free repayment plan with you. As long as you keep to the payment plan, no further action is taken against you.

If you do not pay the other company - they will sue you or turn you over to a collections agency. In most states, they can have your drivers license suspended. You won't get it back until you pay them.

The misdemeanor on your record is the least of your problems.

Howard Said:

Car insurance after accident!! advise/help!! New!!?

We Answered:

TALK THIS OVER WITH YOUR AGENT. Depending on what state you are in, this will be surcharged from three full policy years, to seven full policy years.

Personally, I think your nuts for getting a brand new car. They are depreciating assets - unless you can put 20% down, you'll be "upside down" when you drive it off the lot. The insurance will likely cost MORE than the car payment on this, with your record and age.

You're better of getting a $2,000 junker, it will be MUCH cheaper to insure.

Nora Said:

Can I switch car insurance after a car accident?

We Answered:

No, you will not be able to avoid the record of the accident by switching insurers. The record of your accident will follow you. Your accident will be covered if the policy was in was in effect at the time of the accident. Cancelling it post accident will have no effect.

Aaron Said:

Teen Car Insurance after one accident?

We Answered:

There is really no fixed $$ amount or %, so anyone in here giving you an estimate is really doing you a disservice. Auto insurance is made up of so many variables that anyone here guessing on your increase is doing exactly that: guessing. They really have no idea.

I work for an insurance company and I don't even give guesses or estimates to my own customers when they ask how an accident may affect their rate -- and that's when I can see all of their information right in front of me.

One thing I can tell you, and others who respond can agree, is that it won't be pretty. The rates for anyone under 21 are already very costly, so add an accident into the 17yo mix and you've got two big factors going against you. If you got a ticket in conjunction with the accident it may not matter -- many insurance companies surcharge (ie. charge more) for the accident OR the ticket if they're both related to the same incident on the same day. Violations are given point values, so speeding which results in an accident could cause you to be surcharged for the accident and not the speeding ticket, while drunk driving and getting into an accident will most likely cause the surcharge to be associated with the drunk driving rather than the accident (an accident is worse than speeding but is not as bad as drunk driving).

Other factors which greatly impact the rate and how an accident surcharge might affect you include: type of car you drive (expensive to insure vs inexpensive), the coverage you carry (a more valuable car with full damage coverage will amplify the surcharge), or the zip code you live in. Other factors include whether you've got your own policy or are on your parents' insurance (hopefully you're on your parents' insurance -- it's almost always cheaper!), if there are multiple cars on the policy (multi-car discount), and if you qualify for GSD (having 3.0 or above REALLY helps your rates).

All of this said, your question is still not answered. One thing you really should take note of is whether or not an accident report was filed with the state. In my state (WA), accidents over $750 should be reported to the state by filling out an accident report. If a police officer responds to an accident and the damage looks to be in excess of this they will probably file the report themselves. If the police did NOT show up and you and the person you hit don't file the report with the state then the only ones who know about the accident are the people involved and the insurance companies. In this case, filing the claim will attach the accident surcharge to your record and your rates will go up at the next renewal. On the other hand, if the damage was minor, no police showed up, and you handled it out of pocket, the insurance companies may never know about this accident and you might never see a surcharge.

On the flipside, if the police DID show up and filled out an accident report or issued you a ticket then it's probably in your best interest to let the insurance company handle it. If an accident report was filed or a ticket was issued then it won't do you any good to pay out of pocket since it'll still be on your insurance and your rates will still go up (why let them raise your rates but not allow them to pay out on damage you caused?).

I hope this information was helpful to you.

Emma Said:

What costs would I incur if I cancelled my car insurance accident claim?

We Answered:

Not sure where you’re located but in most States you have the right to have your auto repaired at any shop of your choice.

But to answer your question about if you should stop your claim? No, unfortunately the claim has been filed and it will go on your CLUE report regardless (if you’re in the US). So at this point I would just let the insurance company take care of the repairs. Now how this will affect you at renewal time is anyone’s guess. Just be ready to shop rates when you get your renewal bill. Who knows it may not be that bad and if your current carrier treated you well with the claim process a little increase in premium might not be that hard to swallow especially if they took good care of you.

Sorry about your mishap, hope everything works out well and good thing no one was hurt. Take care.