A recent fender bender reveals the hidden factors that influence insurance premiums more than the value of the cars involved. Learn how at-fault write-offs impact your risk profile and the cost of your insurance, regardless of whether you're driving a Mazda or a Maserati.
Owning an expensive car can sometimes feel like a source of anxiety, as if you're constantly afraid of accidentally damaging it and incurring hefty repair costs. But what if you bumped into a lesser-known car brand instead of a luxury one? A recent incident involving Sarah and the author's 2006 Mazda 6 highlights a fascinating aspect of car insurance. While parking in a crowded shopping center, Sarah sideswiped the author's Mazda, causing damage to three panels.
The repair quote came in at just over $3,000, a seemingly significant amount for a car with a value estimated around $5,000. This event, however, presented a unique situation as the cost of repairs was close to the car's value, raising the possibility of it being deemed a write-off.A write-off occurs when the cost of repairs exceeds the car's value or if repairs compromise its safety. In this case, the author's car narrowly avoided being written off. Interestingly, Sarah's excess for the claim remained the same, irrespective of whether she had hit a Maserati or a Mazda. Her third-party insurance covered any damage she caused to other vehicles, and the excess applied regardless of the car's value. This underscores a key point: from an insurance perspective, the value of the car you hit matters less than the potential risk you pose as a driver.An at-fault write-off significantly impacts your insurance premiums. Insurers view drivers who cause write-offs as riskier, and your premiums will likely increase as a result. The increase can range from 11% to 28% depending on the insurer, according to Finder research. The average increase among surveyed providers was approximately 20%. This means that regardless of whether you damage a Mazda or a Maserati, the potential impact on your insurance premiums will be substantial. While the value of the vehicle might seem like a significant factor, the human element—your driving record and risk profile—plays a much more crucial role
CAR INSURANCE WRITE-OFFS INSURANCE PREMIUMS RISK PROFILE AT-FAULT CLAIM
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