IL auto insurance rate

Reader question:

If I get into an accident one time, will my IL auto insurance rate go up?

Megan

Great question, Megan.

Well, what kind of car insurance company are you with? It would also hinge on what kind of accident it was and what your previous record is. Let’s say that you got into an accident, but it wasn’t your fault, so you make a claim. You’re making this claim with the other car insurance company, so your own company isn’t paying out anything. The only interaction you have with them is that you had an accident so that they can put it on your CLUE report. This shouldn’t raise your IL auto insurance rate, and it doesn’t. It would be against the law for them to raise it when it’s not your fault.

But what happens when you get into a car accident that IS your fault? Well, now we look at the deal that you have with your car insurance company to see how it will affect your IL auto insurance rate.

First of all, many companies have an accident forgiveness option. They do this in a couple of ways. Sometimes you will get your accident forgiveness option right away, so if you get into an at fault accident the second day of your policy, it will be forgiven. Others let you earn it and you’ll only get it after a couple of years of being part of their company with a good driving record. Still others will actually add money to your IL auto insurance rate, essentially charging you for accident forgiveness. Avoid those companies.

If your company offers you accident forgiveness, then you have nothing to worry about. You’re off the hook until the next collision. However, if it doesn’t then you will see your IL auto insurance rate rise. Also, you will see it rise even more and could possibly have your policy cancelled if you already have something else nasty on your record, like a speeding ticket.

Cheers,

Fashun Guadarrama.