There are many factors which the insurance companies take into consideration when they decide on the premiums. One of these factors revolve around the number of accidents you have had, and under what situation. The insurers will dig deep into the accident to see how the accident occurred, your role in the accident and if there were any casualties to determine what your premium should be, or to whether or not grant you a renewal.
There is a deep connection between accident your vehicle was involved in, and the cost of your automobile insurance. If you are found to be guilty then you will have to face high premiums at the time of the renewal, or your policy might not even be renewed. However, if you do get into an accident which was not your mistake, then your policy will remain unchanged.
Moreover, it is not only the accidents which can offset your premiums. If you are caught breaking any of the traffic laws, such as not following the traffic lights or over-speeding, can also cause your the cost of your automobile insurance to grow drastically. As a result of these actions you might also lose your eligibility for the safe driver concession, which is as much as 20 percent.
Even if you do have an accident, do not try to run away or try to cover your guilt as this will only make the situation worse. Instead you should be careful what you do not cause any further harm to yourself.
This is the reason why it is highly recommended that you abide by the traffic laws and always drive within the speed limit. If you follow the rules to the dot there is hardly any chance that you will run into an accident for which you are accountable. Moreover, driving safely is not just about your insurance rates, your life and the life of the passengers sitting with you could also be in danger.
So drive in your own lane, follow the traffic signals and do not try to over take another car. And if you follow all the safety-driving instructions then not only will your insurance rates be stable, but your life will be safe too. Just be sure that if you ever do have an accident and need to file a claim that you also to see if you are really retaining the most favorable rates possible after your crash, as rates tend to increase substantially following any filing of a claim.