The Driving Record's Long Tail: Understanding Auto Insurance Policy Traces

How long does a driving record stay on an auto insurance policy? Well, it depends on several factors. These include the state you live in, the severity of the accident, and the insurance company. While the average time is three to five years, each state has different laws. For instance, in California, serious offenses like DUIs can remain on your record for up to 13 years. In contrast, New York typically keeps records of accidents for about four years. The type of accident also matters – minor fender benders are unlikely to stay on your record for as long as accidents involving DUI infractions, which can linger for a decade or more. Additionally, insurance companies have varying practices, with some requesting driving records going back three years and others up to seven or even ten. Ultimately, it's important to recognize that driving records can significantly impact insurance rates and that the impact may last longer than the presence of the record itself.

How long do accidents stay on your record?

The length of time an accident stays on your record depends on several factors, including the state you live in, the type and severity of the accident, and your insurance provider. While each state has different laws, the average time accidents stay on your record is between three and five years.

In California, for example, accidents involving minor violations remain on your record for three years, while more serious offences such as DUIs can stay on your record for up to 10 or 13 years. In Florida, accidents resulting from traffic citations typically stay on your record for three to five years, but alcohol-related violations are tracked for 75 years.

In Washington state, non-commercial accidents remain on your license for five years, while accidents involving commercial vehicles stay on your record for ten years. Accidents involving alcohol-related convictions will remain on your record for life.

The impact of an accident on your insurance premiums also depends on various factors. If you are found to be at fault for the accident, it is likely that your insurance rates will increase. However, if you were not at fault, your insurance rates may not be affected. The increase in insurance premiums typically lasts for three to five years, but this can vary depending on the company and state.

How do accidents impact insurance rates?

Accidents will impact insurance rates for anywhere from three to five years, depending on the insurance company and state regulations, as well as the nature and severity of the accident. On average, drivers with full coverage pay 47% more for insurance following a single at-fault accident. However, this increase could be larger if the accident resulted in injuries, fatalities, or involved alcohol or drug use.

The surcharge for an accident appears on your billing statement as an additional charge, often a percentage of your premium, when you renew your policy after the chargeable accident. This surcharge usually remains for three years, but it can be longer depending on the circumstances.

Some states only allow insurance companies to surcharge at-fault accidents, while others give insurance companies the discretion to surcharge any accident. If you live in a no-fault insurance state, your insurance rates might increase after an accident even if you weren't at fault. This is because, in these states, everyone involved in a car accident files claims to their insurance policies, meaning the insurer must pay out, even if you weren't at fault.

Some insurance companies offer accident forgiveness programs, where your policy won't be surcharged after your first at-fault accident. This is sometimes offered as an add-on for an extra premium, or you may need to maintain a clean record for a certain number of years to qualify.

How to lower your rate following an accident

An accident on your driving record will typically cause your insurance rates to go up, but there are several ways to lower your insurance rate following an accident:

• Shop around for quotes from other insurers: Every insurance company uses its own methods to calculate insurance premiums, so it's a good idea to compare quotes from at least three different insurance companies every 6-12 months.
• Reduce your coverage: While you should always buy as much coverage as you can afford, if an accident raises your rates to a point where you cannot afford insurance beyond what's required, you can consider removing certain types of coverage from your policy or lowering your limits. Just make sure you're still carrying at least the minimum amount of car insurance coverage required by state law.
• Take a defensive driving course: Many insurance companies will discount your rates if you complete an approved defensive driving course. Additionally, if the accident occurred while you were committing a moving violation, you may be able to remove the ticket or points from your record by taking the course.
• Check for discounts with your insurer: Many insurers offer a variety of discounts that drivers can get even if they've recently been in an accident. Bundling policies, setting up autopay, and going paperless are all ways to earn a discount on car insurance.
• Practice safe driving: The best way to lower your rate long-term is to avoid getting into any more accidents. Even if you have one at-fault accident on your record, your rate will eventually go back down if you don't get any other infractions for 3-5 years.

How long does a not-at-fault accident stay on your record?

The length of time a not-at-fault accident stays on your record depends on several factors, including the state you live in, the nature and severity of the accident, and the practices of your insurance company.

In California, accidents typically remain on your driving record for three years from the date of the incident. During this time, the accident is considered a public record and is accessible to insurance companies, potential employers, and law enforcement agencies. It is illegal for insurance companies to increase your premiums if you were not at fault. However, if you were deemed at fault, your insurance rates may increase as you are considered a riskier driver.

The duration of an accident on your record can vary in other states. In New York, for example, accidents usually stay on your driving record for about four years, while in Florida, most accidents remain on your record for three to five years. More serious violations, such as alcohol-related convictions, can stay on your record for much longer, sometimes even for life.

It's important to note that insurance companies typically look at a shorter version of your driving record when estimating your risk level and setting insurance rates. This record usually goes back between three and five years. Additionally, some insurance companies offer accident forgiveness programs, where your policy won't be surcharged after your first at-fault accident.

How to save money on car insurance after an accident

The length of time an accident will stay on your insurance record depends on your location and the severity of the incident. In the US, accidents generally stay on your record for three to five years, but this can vary by state. For example, in California, most accidents stay on your record for three years, while in Florida, crashes stay on your record for three to five years, and alcohol-related violations remain for 75 years. In New York, accidents remain on your record for about four years, and in Michigan, points stay on your license for at least two years, while convictions stay for at least seven years.

After an accident, your insurance premium is likely to increase. To save money on your car insurance, consider the following options:

• Increase your deductible: Raising your deductible from $500 to $1,000 can lower your premium by 20 to 25% on average. However, ensure that you can afford to pay for repairs if needed.
• Drop collision and comprehensive insurance: If the cost of collision and comprehensive coverage exceeds 10% of your car's value, consider dropping this type of insurance. Just be sure to have enough coverage to protect yourself financially if you are at fault in a crash.
• Take a defensive driving course: Some insurance companies offer discounts to drivers who complete a safe-driving course. For example, in New York, a state-approved defensive driving course can result in a 10% discount on insurance, costing over $3,000 per year.
• Report low mileage: If you drive less than 10,000 miles per year, inform your insurance company, as this can lead to lower premiums. Some companies offer verified mileage programs with additional savings.
• Bundle your auto coverage with homeowners' insurance: Combining your auto and homeowners' insurance with the same company can result in savings of up to $300 per year. However, compare rates from different companies, as bundling may not always be the most cost-effective option.
• Pay out of pocket for minor accidents: If you are involved in a minor accident, consider paying out of pocket instead of filing a claim. This can help prevent a potential rate increase, but get a repair estimate first, as the cost of repairs may be higher than expected.
• Get an independent insurance agent: An independent agent can help you compare coverage and premiums from multiple insurance companies, making it easier to find the best deal.
• Consider a dividend policy: Some companies, like Amica and NJM, offer dividend policies, where policyholders own a stake in the company's investments and can receive dividend payments. This can help reduce overall costs and provide additional savings when bundling home and auto insurance.
• Sign up for driver monitoring: Allowing your insurance company to monitor your driving habits through an app or a device can lead to significant savings. However, this option requires giving up some privacy, so carefully review the data being collected and how it will be used.
• Shop around for better rates: Compare rates from different insurance companies, as switching providers can often result in lower premiums and higher satisfaction. Review your policy regularly and consider other factors, such as moving to a new location or changing jobs, which may also impact your insurance needs.

Frequently asked questions