Chicago, IL (PRWEB) April 12, 2014
One accident can have a disastrous effect on auto insurance premiums. DMV.com, an online resource for the Department of Motor Vehicles (DMV) and driving-related issues, has created a tool to calculate the increase in auto insurance premiums after an accident. DMV.com’s Car Accident Insurance Calculator aims to educate Americans about the cost of an accident and insurance claim.
After a collision, insurance providers typically increase policy premiums for a period of 5 years. This increase reflects the additional risk that these drivers pose to insurers. With the new calculator from DMV.com, drivers can predict how much their premiums will increase, based on their home state and current rate.
The Car Accident Insurance Calculator estimates how much car insurance rates increase after one or two at-fault accident claims. The results, based on 2013-2014 insurance data, show that after one accident, the average American’s premiums will increase by a total of $1,468 over a period of 5 years. This means drivers will pay $24.47 every month, in addition to their regular rates.
The average cost of auto insurance, and the average increase after an accident, varies from state to state. New Jersey, Washington D.C, Louisiana, New York, and Florida have the most expensive premiums. At $1,183 a year, New Jersey has the highest average insurance premiums in the United States. After an accident, insurance rates increase the most in Massachusetts, California, New Jersey, North Carolina, and Minnesota. Policyholders in Massachusettsexperience the greatest increases after a claim; the average driver in the state will experience a 67% rate hike after their first at-fault accident.
Auto insurance premiums are influenced by a variety of other factors including driver age, gender, and vehicle type. The DMV.com Calculator provides different outputs for high, average, and low risk profiles. These profiles are based on driver age, gender, credit score, and varying levels of coverage. After an accident, an average high-risk driver will pay $770 more, over 5 years, than a driver with a regular risk profile.
The Car Accident Insurance Calculator also estimates increases in insurance rates after a second claim. On average, drivers who make two accident claims will experience an additional 86% increase in their insurance rates. This means that after a second at-fault accident, the average American will spend an additional $6,035 on auto insurance over 5 years.
For more specific information about your auto insurance rates and how they can be influenced by accidents, contact your insurance provider or visit the our Car Accident Insurance Calculator.
DMV.com is an online resource designed to help simplify the Department of Motor Vehicles. As a private company, DMV.com helps millions of people receive the information and services that they need quickly and easily. DMV.com is a privately owned website that is not affiliated with any government agencies.
For more information, please visit http://www.dmv.com.
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