How might an accident impact a driver’s auto insurance?

An accident typically leads to an increase in the driver's auto insurance premium or could even result in the non-renewal of the policy. Insurance companies assess risk based on a driver's history, and having an accident can be seen as an indicator of higher risk. When a claim is filed due to an accident, it signals to the insurer that the driver may be more likely to file claims in the future. As a result, the insurer may adjust the premium to reflect this increased risk. In some cases, if a driver has multiple accidents or claims, the insurance company might decide not to renew the policy altogether, deeming the risk too high. Therefore, the impact of an accident on auto insurance is significant, and it often manifests in the form of higher insurance costs or even the loss of coverage.