A record of previous car accidents affects what insurers charge you for coverage, which can result in higher rates. Fortunately, most claims don't stay on your record forever, and they tend to have a declining impact on your rates over time.
How long does an accident stay on your insurance exactly? Knowing that answer can help you anticipate when your rates may drop if you've recently filed a claim.
How Long Do Accidents Stay on Your Insurance Record?
Generally, an accident remains on your insurance record for three to five years. However, state laws and accident severity can impact the length of time an accident stays on your record and its impact on your insurance rates.
At-Fault vs. Not-At-Fault Accidents
Insurance companies separate accidents into two categories: at-fault and not-at-fault. If you're deemed responsible for the collision, it's an at-fault accident. A wreck caused by someone else goes on your record as a not-at-fault collision.
How long does an at-fault accident stay on your insurance record? If it resulted in a fatality or was caused by driving under the influence (DUI), it may stay on your record for ten years or longer. Some states keep a permanent record of such incidents, which an insurance company may incorporate into your rates.
Not-at-fault accidents carry fewer repercussions. They're less likely to affect your insurance rates and usually fall off your record within three to five years.
State Laws That Affect Accident Duration
Each state sets its own data retention policy for accidents and driving infractions. It usually ranges from three to five years. For example, the standard driving record for Oklahoma is three years. In New York, accidents stay on your record until the end of the year they occurred, plus three additional years.
States may report severe incidents for much longer. Florida retains a history of accident-related DUIs for 75 years. In Massachusetts, a DUI stays on your record for 10 years. Whether an insurance company considers longer-term records as an influencing factor on your rate depends on its policies.
How Insurance Companies Use Your Driving History
There are two times an insurer looks at your driving history: when you're applying for a new policy or renewing coverage. Companies review your records to determine your risk profile, which is used to set your new rates.
How car accidents affect insurance rates depends on their circumstance and severity. A no-fault accident that didn't result in any injuries or major damage probably won't change your rates much. In fact, companies such as Progressive and Liberty Mutual provide accident forgiveness for minor claims and disregard them when calculating insurance costs.
But that's not the case for at-fault collisions, especially those caused by reckless driving or DUI. You can expect higher rates for the foreseeable future. Coverage costs drop as time goes by and you stay accident-free.
What Is Accident Forgiveness and How Does It Work?
Some insurers offer accident forgiveness as a policy benefit or add-on. With this type of coverage, you can avoid rate increases if you're responsible for a collision. The exact eligibility requirements for accident forgiveness vary between providers, but may include:
- Remaining accident-free for up to five years
- Meeting age restrictions
- Paying a fee for the benefit
Accident forgiveness only covers one accident in a pre-defined timeframe for everyone on your policy. So if you have family insurance coverage, accident forgiveness would only apply to one claim. If another household member has a wreck, it wouldn't be covered.
Insurers may exclude serious at-fault collisions, especially those involving DUI or reckless driving, from accident forgiveness. If you have the benefit, read your policy carefully to understand how insurers apply it to your driving record.
How To Lower Insurance Costs After an Accident
You aren't doomed to sky-high insurance rates following a collision. Here's what to do after a car accident to minimize its effect on your policy costs.
- Take a defensive driving course: Your insurance company may reward you with a discount after completing an approved driving class.
- Enroll in a telematics program: Let insurers track your actions behind the wheel by enrolling in telematics. If you consistently demonstrate safe driving behavior, insurance companies will lower your rates. Some may even give you an automatic discount just for signing up for the program.
- Improve driving behavior: Commit to real changes that limit distractions and reduce the risk of an accident. For example, silence your smartphone when you're behind the wheel and refrain from snacking until you stop the vehicle.
- Ask about discounts or bundling: Many insurers offer extra savings for bundling multiple policies, such as homeowners and auto coverage. Discounts based on your employment, affiliations, or vehicle usage may also apply.
When To Compare Quotes and Switch Providers
Most insurers will work with you to keep policy costs within your budget. But it's never a bad idea to compare car insurance quotes so you know whether you're overpaying. Time spent talking with other insurers could turn into real savings for your bank account.
States may require you to carry high-risk car insurance after an accident. If your insurer doesn't offer that, you'll want to find a provider that does. Shopping around can help you stay compliant with your state's rules so you can continue driving.
Customized Insurance Comparison Options
EverQuote eliminates the hassle of shopping for auto insurance. In mere minutes, you can get a custom comparison of insurance rates from multiple providers. Try it for free and start saving today!