Can My Deductible Change After an Accident?
When it comes to auto insurance, a deductible is the amount you must pay out of pocket before your insurance coverage kicks in during a claim. Understanding whether your deductible can change after an accident is crucial for effective financial planning.
What Happens After an Accident?
Generally, your deductible amount remains constant throughout your policy term. However, there are specific situations where it might be adjusted:
- Policy Renewal: When renewing your policy, you might have the option to change your deductible. This is a common practice, but you should consult your insurance provider for specific terms.
- Claims History: If you file multiple claims within a short period, your insurer may increase your deductible when it's time to renew your policy. This is often done to mitigate risk for the insurer.
- Coverage Changes: If you change your coverage options or add new vehicles, your deductible terms may change as well.
Factors Influencing Deductible Changes
Your driving record, the type of coverage you choose, and the insurer’s underwriting policy can all influence whether your deductible changes after an accident. It’s essential to review your policy and understand the terms.
Conclusion
While an accident won't automatically change your deductible, it can impact your next renewal terms. Always communicate with your insurance agent to clarify any potential changes to your deductible.