How Accidents Impact Your Insurance Premium
Even even skilled drivers occasionally experience horrible driving days. Accidents are never purposefully caused, whether you run that stop sign or hit another vehicle. Unintentional, however, does not equate to “not responsible.” Additionally, a collision may occasionally lead to an increase in insurance costs.
Who is responsible?
Even if there was nothing you could have done to prevent the accident and the police haven’t charged you with a crime, establishing an at-fault party is one way for insurance companies to manage vehicle accident claims effectively.
If you’re in a collision with a driver of another vehicle, insurers decide who is at fault based on the Fault Determination Rules. On occasion, it may take time and further police and/or insurer investigation to determine who ultimately caused the accident. In any event, being responsible for an accident could be grounds for an increase in your auto insurance premiums.
What about ‘no-fault’ Insurance?
Despite the possibly deceptive nomenclature, provinces that have a “no-fault” insurance system nonetheless use Fault Determination Rules to determine whether to hold one or more parties partially or entirely accountable after an accident. Simply put, a no-fault insurance system just means that you deal with your insurer directly to resolve your claim.
How do I know if I have Accident Forgiveness?
In general, if you and all other secondary or infrequent drivers of your car have a spotless driving record, you can be eligible for Accident Forgiveness (for example, no at-fault accidents). Remember that qualifying requirements and rules can change depending on your specific situation and the insurer.
If you’re unsure of your eligibility, speak with your insurer to learn more. You may also check your eligibility for Accident Forgiveness and manage your policy through MyInsurance if you already have a car insurance policy with TD Insurance.
How to lower your premium after an accident
We’ll work with you to identify every opportunity to reduce your auto insurance costs, even if an accident leads to a rise in your premiums. You may reduce the cost of your auto insurance with TD Insurance in a number of ways, including by bundling discounts or signing up for TD MyAdvantage.
We’ll assist you in getting back on the road with confidence, from coverage through claims. If you already have TD Insurance, you can access MyInsurance to manage your insurance online. Or, if you aren’t currently covered by us but are considering switching, just get a quotation to get going.
How long does an accident stay on my record?
The amount of time that an accident can stay on your record depends on multiple factors, including but not limited to:
The province you live in
Your insurer’s rating criteria
The degree of fault you were assigned in the accident
If you had TD Insurance’s Accident Forgiveness coverage (or your insurer’s equivalent)
Because there’s no ‘one size fits all’ answer, contact your insurer directly for more information on how an accident may affect your record and your premium, and for how long.