Fri 21 Dec 2012
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There are many accidents in which more than one car is involved. After the incident you will have to quickly assess the situation as to who is at fault. In other words, you or the other driver caused the accident. This is an important task in many aspects. The outcome of being responsible or not will determine who pays the damages and how your auto insurance rates are affected. Let’s have a look at the consequences of each situation.
If you feel like you were at fault and you may want to claim your damages from your own insurer. In order to do that you need to have sufficient coverage to pay for repairs. This would mean that you need collision coverage within your policy in this case. Normally you will need to pay deductibles when you are making damages claims from your own insurer. This may mean that you give up on making claims when the damages are small and your deductibles are close or higher than your damages.
If you are at fault, the other driver can claim his losses from your insurer as well. If you hit his/her car you will have to pay for the damages caused. This is how it works; you break you pay. As you were responsible for the accident and made your insurer pay a lot of money on claims you are now a high risk driver. This will be reflected on your next renewal premium. You will lose your good driver discounts and you may get charged a little extra as well that you shouldn’t be surprised to be hit with large increase in your insurance costs.
Let’s think a completely opposite story where the other driver is responsible. Then, you would want him or his insurer pay for your losses. Why should you suffer for some other people’s mistakes financially. You would suffer a little anyway with losing your car during repairs and having an accident recorded against the vehicle. Besides, you don’t want to pay the deductibles and see your premium increase. So, you make a claim directly with the third party insurer. Even though you may inform your insurer of what happened they will not take this accident into account when preparing renewal quote because they know it wasn’t your fault.
If the third party driver accepts the fault and his insurer pays the repair costs it will be over for you. In some cases you may not be as lucky because the other side may deny being responsible and blame you. Or they may just take too long to deal with your claim that forces you to go to your own insurer. This is possible since you bought coverage for damages but making a claim from your own provider would mean two things. You pay deductibles and your premium increases.
However, your insurer may get the money from the other side insurer at the end. Then, they would return the deductibles you paid and the accident would be recorded as no fault of yours.
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