Auto Insurance Incidents: How Long Do They Last?

How long an incident stays on your auto insurance depends on a variety of factors, including the type of incident, the state you live in, and the insurance company you're with. Generally, accidents stay on your record for three to five years, but they can sometimes stay on your record for up to ten years or more, especially if they are serious offenses such as DUIs. In some states, insurance companies are only allowed to surcharge at-fault accidents, while in others, they have the discretion to surcharge any accident. It's important to note that even if an accident is no longer considered when calculating your rates, it may still be on your driving record.

How long does an incident stay on your record?

The length of time an incident stays on your record depends on several factors, including the state you live in, the type and severity of the incident, and your insurance provider. While the average time is between three and five years, this can vary depending on the specific circumstances.

In the United States, each state has different laws regarding how long an incident stays on your record. For example, in California, serious offences such as DUIs can remain on your record for up to 13 years, while in Alabama, the average time is two years. It's important to check the laws in your specific state to understand how long an incident may affect you.

The type and severity of the incident also play a role. Minor accidents, such as fender benders, may not stay on your record for as long as more serious incidents, like those involving DUI infractions or causing serious injuries. Additionally, the insurance company you have can also impact the duration. Some companies may forgive minor accidents, while others may keep them on your record for a longer period.

It's worth noting that even if an incident is no longer considered when calculating your insurance rates, it may still be present on your driving record. Insurance companies typically focus on the last three to five years of your driving history when determining your rates, but this can vary, and some companies may go back seven or even ten years.

To summarise, the length of time an incident stays on your record can range from three to five years on average, but this can be longer or shorter depending on the state, the nature of the incident, and your insurance provider.

How does an incident affect your insurance rates?

The impact of an incident on your insurance rates will depend on several factors, including the type and severity of the incident, your previous driving history, and the laws and policies of your specific state and insurance company. Here's a detailed overview of how an incident can affect your insurance rates:

Impact of Incidents on Insurance Rates:

• Type and Severity of Incident: The nature and seriousness of the incident play a crucial role. Minor accidents, such as fender benders, will typically have a lesser impact on your insurance rates compared to more severe incidents like DUIs or accidents involving injuries.
• Previous Driving History: If you have a clean driving record and the incident is your first accident, it may not significantly affect your rates, especially if you weren't at fault. However, multiple accidents or moving violations over a short period will likely result in higher insurance premiums.
• State Laws and Insurance Company Policies: The duration an incident stays on your record and its impact on your rates vary by state and insurer. On average, incidents remain on your record for around three to five years, but this can range from a few years to over a decade, depending on the severity and location. Some states have specific laws regarding insurance rate increases after incidents, with variations in fault determination and surcharge periods.

Understanding Rate Increases:

When you cause an incident that results in a claim against your liability insurance, you may be subject to a "surcharge," which is the actual rate increase. This surcharge will typically be applied when you renew your policy, and the new insurance company will also consider this incident when calculating your new rate. The increase in rates can vary significantly from company to company, so it's essential to compare rates and find the most affordable option.

Ways to Mitigate Rate Increases:

• Defensive Driving Courses: Some insurance providers offer discounts for completing defensive driving courses, which can help lower your insurance rates.
• Shopping for New Coverage: You can explore alternative insurance providers to find more affordable coverage. Changing insurance providers is an option at any time, and getting quotes for new policies won't penalize you.
• Improving Credit Score: In most states, insurance companies consider your credit score when determining rates. Improving your credit score through debt repayment and timely payments can help lower your insurance premiums.
• Adjusting Coverage and Deductibles: Reducing your coverage to the minimum requirements and increasing your deductibles can lower your insurance rates, but be mindful that these options may result in higher out-of-pocket costs in the event of future incidents.

How to lower insurance rates after an incident

The length of time an incident stays on your auto insurance depends on where you live, the severity of the incident, and your insurer. While each state has different laws, an incident usually stays on your record for three to five years. During this time, your insurance rates will likely increase.

Seek Coverage Elsewhere

Switching insurers after an incident is a strategy recommended by many insurance experts. You may be able to find a better price by choosing a different firm. It's a good idea to get prices from other auto insurance carriers at least once a year to see if you can get a better deal. According to The Zebra, State Farm, GEICO, or USAA typically offer the most affordable coverage rates after an incident, depending on the state.

Update Your Coverage

Changing the limits and terms of your auto insurance policy after an incident can also help you save money. Consider increasing your deductible to achieve a lower monthly payment on your insurance premium. Just be sure that you don't cut your coverage so much that you'll be left with significant out-of-pocket costs if another incident occurs.

Go to Driving School

Many insurance companies offer discounts if you complete a defensive driving or driver education course. These classes cover road safety techniques, accident avoidance, and traffic laws in your state. Taking such a course can help insurers associate you with a lower accident risk.

Improve Your Credit Score

If you have below-average credit, your score can result in higher insurance rates in many states. Insurance companies associate poor credit scores with a higher risk of claims. By taking steps to improve your credit, such as paying bills on time and reducing your overall debt, you may be able to earn lower auto insurance premiums.

Look for Discount Programs

There are various types of discounts that auto insurance companies offer, including safe driving discounts, membership discounts, anti-theft and safety discounts, defensive driver education discounts, paperless billing discounts, upfront and auto-payment discounts, and multiple policy discounts. After an incident, check with your insurance agent to see if you're eligible for any of these savings programs.

What is accident forgiveness?

Accident forgiveness is an auto insurance benefit that may prevent insurance rates from increasing as a result of a driver's first at-fault accident. It can be added to a policy or awarded to those with a good driving record. Accident forgiveness may allow drivers to save on their premiums and retain good driver discounts.

Accident forgiveness works by preventing your insurance rate from increasing after a car accident claim. Some insurers include accident forgiveness at no charge, while others offer it as a purchased endorsement, meaning you pay a higher rate in exchange for the benefit.

Accident forgiveness may not be available in all states and eligibility can vary by insurer. Some insurers offer it as a reward for good driving by applying a discount to your policy, or it could waive the rate increase for your first accident.

Accident forgiveness is particularly useful if you are a safe driver. Even if your insurer charges extra for accident forgiveness, it may be worthwhile because you can't control what other drivers will do on the road. Accident forgiveness can give you cheaper auto insurance rates in the event of an accident by protecting you from another driver's mistake.

How do insurance companies find out about incidents?

Insurance companies have various ways of finding out about incidents. When you file a claim, they will investigate the case to determine if they need to pay out and how much. This investigation process can take anywhere from a few days to several months. They will ask you to provide evidence to support your claim and may also send adjustors or investigators to gather evidence about the cause of the accident and the extent of the damage. They may also ask you questions about the accident, either over the phone or in a recorded statement, and they may request your cellphone records. They will also talk to any passengers and witnesses, and they may visit the scene of the accident.

Insurance companies are not "out to get you", but they will try to find reasons to reduce the amount they pay out. They are also protecting themselves against fraud, as more than 15% of auto claims payments made in 2012 were the result of a fraudulent claim.

If you don't cooperate with the investigation, your claim will likely be denied, and the insurance company may drop you as a customer. However, you are under no legal obligation to provide the information requested by the insurance company unless your claim has moved into the lawsuit stage and there is a court order.

Insurance companies will also find out about incidents by checking your driving record and claims history. Incidents usually stay on your driving record for around three to five years, although this can vary depending on the state and the severity of the incident. For example, in California, serious offences such as DUIs can stay on your record for up to 13 years.

Frequently asked questions