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How do accidents affect Michigan car insurance rates? | Michigan Auto Insurance

posted Jan 8, 2019, 1:11 PM by Jason Grubbs   [ updated Jan 8, 2019, 1:12 PM ]
Have you ever heard the saying "Past performance is no guarantee of future results"?
It's a phrase commonly used in the investment world intended to caution investors that the past performance results of a particular investment aren't necessarily indicative of how that investment will perform in the future.

When it comes to auto insurance the opposite is generally true as insurance companies consider past performance to be a likely indicator of future results.  What this means is auto insurance companies consider your driving history, including any tickets and accidents, as key factors in assessing the likelihood of future claims.  In most instances insurance companies look at all accidents - regardless of fault - and those accidents can affect how much you pay for your Michigan auto insurance.

Michigan Auto Accident

Most people understand and accept at-fault accidents are going to affect how much they pay for car insurance.  Typically, insurance companies apply a surcharge (an increase in base rates) for at-fault accidents for 3 years, beginning at the first renewal following an accident.

The amount of surcharge for an at-fault accident is going to vary between insurance companies.  In some instances, the severity of an accident (amount paid in damages) may also be a factor in determining the extent to which an accident will affect your rates.