Recovering from an Accident with Insurance

You know the drill. After you've suffered a car accident, the odds are high that your insurance payments are going to jump. But, here's what you may not know: This increase doesn't have to be permanent. The steps you take following an accident can help you lower your insurance rate back down to a more reasonable level.

There's one simple key to reducing the time it takes you to recover from an auto accident. You must make sure to drive safely.

That sounds like common sense. But, it's actually crucial. If you get into another accident, or if you receive a speeding ticket or some other moving violation, your insurance rates will jump again. And, this time, the rates will skyrocket. The only way to prevent this from happening is to drive as safely and responsibly as possible. As your driving record remains spotless, you'll notice that your insurance rate will start to fall. That's by design as insurance companies reward drivers who avoid accidents and speeding tickets.

You can take other steps to recover from an accident, too. Try buying an alarm system for your car. Insurance companies will often lower their rates for drivers who protect their vehicles from thieves. Try driving fewer miles each week, too, perhaps taking the train or bus to your job. Again, insurance companies reserve lower auto rates for those drivers who use their car less frequently. The theory is that you're less likely to get into a costly accident if you drive fewer miles.

Finally, consider investing in a secure parking garage. If you park your car outside on a street each night, your insurance company will again charge you higher rates.

An auto accident is a stressful event. But, by taking some simple steps, you can increase the odds that an accident won't boost your insurance rates for too many quarters.