Many people assume putting a claim on their auto policy will cause this insurance premium to increase. It’s not always true.
Today, I’m going to share some “insider secrets”. Actually, the general public is privy to the information, but the reality is, most people don’t know how to find the information.
Here’s a helpful link to the “Point System” in Massachusetts.
Back to the point of this blog post.
Were you in an car crash?
Was it your fault?
If you answered yes to either question, read on. If you weren’t, read on, you may be able to help someone else!
If you were in a car crash it’s either you at fault, the other driver at fault, or 50/50 (you’re 50% at fault and the other drive is 50% at fault). If there are more vehicles involved, it gets tricky.
If you rear end someone (hit from behind), it’s your fault.
If someone rear ends you, it’s their fault.
- If the insurance company paid out $500 or less, there will be no surcharge.
- If the insurance company paid out $500.01-$2000 you will have a surcharge of 3 points.
- If the insurance company paid out $2000.01+ you will have a surcharge of 4 points.
How will that affect your driving record? How will it affect your insurance?
A surcharge of 3 points on your driving record, it will be on your license for 6 years. It will cost you approx $2000 over a period of 6 years on your car insurance policy.
A surcharge of 4 points on your driving record, it will be on your license for 6 years. It will cost you approx $3000 over a period of 6 years on your car insurance policy.
What should you do?
If you have a $500 deductible on your car policy and you have $400 worth of damage to your car and $0 damage to another car, you pay out of pocket.
If you have $900 worth of damage, you can submit a claim to the insurance company. They can subsidize your accident. Remember, you have a $500 deductible. You can pay $500 and the insurance company can pay $400.
If there is $1000-$2000 worth of damage the insurance company will pay out, is it worth having a surcharge on your license for 6 years? Can you pay out of pocket? If you can, you should.
If there is $2000+ worth of damage the insurance company will pay out, you will have a surcharge of 4 points on your license for 6 years. You can either pay out of pocket or let the insurance company handle it. Sometimes it’s not worth the hassle to pay out of pocket.
Remember the limits:
$0-$500 no surcharge
$500.01-$2000 3 points
$2000.01+ 4 point
Keep checking our blog. We’re going to highlight a topic many people may be interested in: accident forgiveness!
Please call you insurance agent for more information or further questions. Remember, our blog is a resource, but it’s best to speak to your agent who knows your situation and your policy. Our information is not the be-all end-all.
We are here to help.
And to inform.