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The Impact of Accidents to Auto Insurance in Los Angeles FAQs

CarInsuraneInLosAngelesAuto insurance in Los Angeles has a wide perspective. To acknowledge it through every side, many queries arise. For the satisfaction of the drivers, few of the queries are discussed below.

Q. How Much Will Your LA Auto Insurance Increase after an Accident?

A. When an accident occurs and the car specifies to have been insured, the damage can be covered up by the auto insurance.  The premium fluctuates depending on whose fault it was. If the person has not caused the accident, his premium will not increase much. On contrary, if the person is at fault, information is supplied by the auto insurance company as to how much the premium will increase.

Q. What might be the reasons of increase in the premium?

A. When the person is purchasing the car insurance, company asks for the previous records of accidents and damages that were caused by him. This reflects the possible probability of that person being trapped in the accident in the future. The people with greater possible risk of chances are offered for higher premium. The insurance premium depends on number of factors and this is one main factor.

Q. How is the car insurance premium in LA increase determined?

A. Here are few ways through which the insurers figure the amount of premium following the at-fault accident.

•             Percentage of base-rate

Insurance Services Office standard is followed by all the insurance companies. It indicates that an increase of 40 percent will be applied to premium once the person has first at-fault accident. The increase is made in the base rate; it is the average sum of the claims and insurance company processing fees.

•             Percentage of your rate

Instead of using base rate to calculate the premium, some insurers calculate the increase in premium based on the amount of premium that was applicable before the accident. In this way, again the probable increase will be 40 percent.  Subsequent accidents can further increase the premium rates.

•             Safe-Driver Plan for insurance

Both the systems elaborated above have their basis on ISO’s Safe Driver Plan of Insurance that is being followed by the insurers. The Insurance Plan assigns point value according to the severity of the violation or car accident in Los Angeles. These particular points are unlike from the ones DMV of the State assigns the driver on tracking his driving record. Consequently, the accidents in which the concerned driver is not involved results in no points.

Supplementary factors:

The additional factors might affect the premium amount after the occurring of an accident. These supplementary factors might include location, drivers age, the type of vehicle damaged in the accident, and the total claims by group of related individuals. Other factors that affects the premium rate is the person getting married, moving to a different place closer to the workplace that requires less mileage. If the person turns 40 during the insurance policy registered, he will get the discount for it. The type of car bought also modifies the premium rate.

The knowledge of auto insurance in Los Angeles is must in the case if you want to be insured. The first thing you might want is the knowledge of available quotes from the insurance companies in Los Angeles. For your assistance, we have a bar at the top of the webpage, enter your ZIP into the bar, and get the free quotes from the auto insurance companies in the state.