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I can be a very nerve wracking experience to be in an auto accident, even when no one is injured. If you are in an auto accident and it is you who are at fault then it can be even more nerve wracking. In this case not only are you responsible for the damage to someone else's car along with your own but you probably are worrying how the accident will affect your auto insurance premiums.

Changes in the Pattern of Rate Hikes

For some time now, auto insurers have been using the excuse of accidents as a means for raising their clients’ auto rates. Occasionally the company would even raise rates when their client was not at-fault, even in this case where they didn’t have to pay out any money for a claim. But in many states the public outcry along with changing laws has changed this. There are however, still many responsible drivers who may yet be in for a rate increase.

Normal Procedures for Dealing with At-Fault Claims

The state laws determining why and when an auto insurance company can increase its rates based on an at-fault accident may vary from state to state. Here is how insurance companies handle at-fault claims along with a few tips.

• In the event that there is a police report and the presiding officer has designated one of the parties in the accident to be “at-fault,” insurance companies do not need to take the officer’s word for it. In most cases, the insurance company itself will hold its own investigation into the accident to determine who they decide was at-fault for the accident. In many states there are laws determining how the investigation should be conducted.

• When deciding if to raise rates, companies may take the severity of the accident into consideration when. So if it is a small or minor fender bender your rates may not be affected, but if you are in an accident in which major auto repairs are needed or medical bills need to be paid, your rates will probably go up.

• There are insurance companies today that are offering what is called “Accident Forgiveness.” When the driver has a good driving record according to their insurer’s standards, for his first at-fault accident the company may not raise the driver’s rates.

• When it comes to the second at-fault accident however, most people can expect a significant rate increase. This is experience true when it follows closely behind their first one.