Will My Auto Insurance Increase After An Accident?

Reader’s Question:

My cousin has always been a good driver until he got into an accident he caused recently. He was worried about his auto insurance,  that it would just increase if he renews his policy. How much will his rate increase after a driver has gotten into one accident?

Missouri

James

Kansas City, MO

If a driver has been into one vehicular accident, it’s possible that the driver’s auto insurance rates will increase but it varies from state to state and from one company to another. However, it will so much depend on the kind and seriousness of the car accident and who is found to be at fault. If the driver was drunk during the accident, there’s a chance for the policy not to be renewed. He can still be able to get auto car insurance but it would be more costly.

In case the driver has had a good driving record, like your cousin’s case, most auto insurance providers won’t necessarily increase their rates if a driver is found to be at-fault in a rather minor car accident, especially if the driver has been with them for five years. The rate increase depends on several factors like the Missouri state law and the rating plan of the auto insurance provider.

Under the state law or by an auto insurance provider, a minor or first-time vehicular accident may be forgiven. So if you are purchasing auto car insurance, make certain to ask if a specific auto insurance provider has a first-time accident forgiveness program and if so, you might be eligible for it. Then again, there may be serious auto insurance and legal penalties if the accident involves serious physical injuries and if the at-fault driver is under the influence while operating the vehicle. There could be a significant increase in auto insurance rates or even a termination of coverage, subject to laws of the state. Apart from that, there may be huge fines and even jail time necessary.

Drunk Driving and Auto Insurance Cancellation

Reader’s Question:

My 18-year-old sister and I share my car, and she is listed in my auto insurance policy. If she was arrested for drunk driving in Texas, will my policy be canceled?

Cynthia

Fort Worth, TX

The State of Texas has been reported to have the highest number of alcohol-related road accidents. Based on the Texas National Highway Traffic Safety Administration survey, 70 Texans sustain injuries or are killed in accidents every day. A shocking 11% of drunk drivers arrested were minors under the age of 21, the state’s legal age for alcohol. It is for this reason that tough laws have been put in place to apprehend drivers who have been driving while drunk or intoxicated.

First-time offenders are obligated to pay a minimum fine of $1,000 but not more than $2,000. On top of that, administrative fees will be assessed. Texas has also imposed a surcharge fee to first-time DUI offenders of $1,000 annually for three years. Moreover, $2,000 surcharge will be paid yearly for three years if the blood alcohol level (BAC) is 0.16% or double the state’s statutory limits. If convicted, minimum jail time of 6 days will be imposed. Driving privileges will be revoked for a year although the car will be spared from the state’s impound.

Your sister, who you obviously feel may be involved in an alcohol-related arrest, should be restricted to use your car. This will save you and your family from possible financial difficulty. Even if your auto insurance will cover the liability, the statutory fines will be shouldered by the offender. And although your driving record will not include any of her potential demerit points, your auto insurer will still review her record since she is listed in your policy. If she indeed gets into any alcohol-related accident which she caused, then your auto insurer will find her an unfavorable risk. This may cause possible refusal of your auto insurance policy renewal if not complete cancellation.

What Are The Penalties For Driving Without Auto Insurance Arkansas?

Reader’s Question:

I need help. I was caught driving without auto insurance in Arkansas for the fourth time and I am just wondering what the penalties are? Am I going to jail?

Janice

Little Rock, AR

All drivers in the state of Arkansas are required to have the minimum amount liability insurance coverage in the amount of 25/50/25. This stands for $25,000 for bodily injury coverage of one person per accident up to $50,000 per accident and $25,000 for property damage coverage. If you are found driving without auto insurance in Arkansas there is a graduating scale of penalties, all with mandatory fines. If you are caught driving without auto insurance for the first time you are required to pay between $50-$250. If you are caught driving without auto insurance in Arkansas for the second time you are required to pay between $250-$500. Any third or subsequent violation will result to imprisonment up to a year and a fine between $500- $1000 or both.

So If you get caught driving without auto insurance in Arkansas for the 4th time you will likely be required to pay the highest amount of fine and will likely serve jail time also. I suggest you contact the Arkansas Department of Motor Vehicle to get more information as to what the penalties will be for being caught driving without car insurance for the 4th time.