Austin, TX residents like you love riding motorcycles around the beautiful Texas landscape. However, what happens when you get into an accident? Will your rates increase? That’s what we at Southwest Insurance Center are here to help you find out.
Rate Increases Aren’t Always Automatic
One thing that is important to understand is that rate increase aren’t always automatic after an accident. Rate increases are common if the person driving the motorcycle was at fault or if they had no-fault insurance. It is also likely if the crash was very severe and the bike was wrecked. Increases are caused by an insurance company feeling uncertain about the safety of a specific driver.
Typical Rate Increases
If your insurance company has told you that there will be a rate increase after your motorcycle crash, it is important to know a typical rate increase. The Insurance Services Office suggests raising it by a minimum of 20 percent all the way up to 40 percent. However, some companies may increase rates by as much as 100 percent, particularly in dangerous motorcycle accidents caused by the driver.
Another problem that often affects motorcycle drivers after an accident is a subrogation. This occurs when your insurance company wants some reimbursement after an accident if you pursue a lawsuit and win. Motorcycle accident lawsuits are common, and insurance companies may feel they are obligated to some of that money. However, these demands are illegal, unlike a rate increase. Thankfully, most companies won’t try this sort of thing.
Protecting Yourself From Increased Rates
If you live in Austin, TX and you’re worried about increased motorcycle insurance rates, please contact us at Southwest Insurance Center today. We will work to decrease your rates and keep you from paying excessive amounts of money.