Reader’s Question:

I was driving my friend’s car and got into a minor accident. Will this increase my friend and my own insurance rates?

Leo

Joliet, IL

Insurance providers determine your rate by looking at different factors or risk factor for a motorist or a car.

Yes, your insurance rates will be affected by this minor accident; insurance providers use your driving record as a risk factor for calculating your insurance rates.

Yes, your friend’s insurance rates can be affected IF their insurance provider had to pay a claim for this accident; insurance companies use claims history (or claims paid) as a risk factor for determining car insurance rates.

If either rate is affected, you should shop for new car insurance. There are insurers that do not use these items as the risk factors. The only way to find these insurance companies is to shop for car insurance.