How the Insurance Company Views You
If you were involved in an accident, then you may be identified as a “high risk” because of the
expenses that you caused the company. There is data showing that accidents are more likely in
certain states, which is why many insurance companies will use your zip code to determine your
base level of risk. This includes identifying whether you live in an area where there is a lot of
traffic congestion, accidents, or high crime rate.
If you weren’t to blame for the accident, the insurance company may not identify you as high
risk. They understand that accidents happen and therefore you may not be penalize. However, if
you were at fault for the accident, then the insurance company will establish how risky you are to
insure. This decision may be established once they look at why you were involved in the
accident. For example, if you are a teenager, senior citizen, or you were driving under the
influence, this may have an impact on the level of risk the insurance company categorizes you as.
It will also play a role in how much your insurance premiums go up in order to continue offering
you car insurance.