Auto Insurance: Accident History And Its Longevity

Accidents can affect your insurance rates for up to three to five years, depending on the insurance company and the state in which you live. This timeframe can vary, with some states restricting records to three years, while others may go up to six or even seven years. The severity of the accident also plays a role, with serious accidents or violations, such as DUI convictions, potentially remaining on your record for ten years or more. Ultimately, it's important to check with your specific state's Department of Motor Vehicles to understand how long accidents will impact your insurance rates.

Accident history impacts insurance rates for 3-5 years

Accident history impacts insurance rates for three to five years, depending on the insurance company and the state's regulations, as well as the nature and severity of the accident. This period is known as surcharging, and it usually involves insurance companies increasing your premium after an accident. The surcharge appears as an additional charge on your billing statement, often as a percentage of your premium, when you renew your policy.

The length of time an accident remains on your driving record, which is used to determine your car insurance rate, can vary by state and insurer. Some states, like Arizona, New York, and Ohio, only allow insurance companies to surcharge at-fault accidents. In contrast, other states give insurance companies the discretion to surcharge an accident regardless of fault.

While accident history typically impacts insurance rates for three to five years, serious accidents, such as those involving a DUI conviction, may stay on your record for much longer or even permanently. Additionally, some states have laws restricting the number of years a car insurance company can penalize you for an accident, so an accident may not affect your rates for the entire duration it remains on your record.

To lower your insurance rates after an accident, you can consider taking a defensive driving class, improving your credit score, increasing your deductible, or shopping around for quotes from different insurance companies.

Accident forgiveness

However, some states prohibit insurance companies from raising your premium if the accident wasn't your fault. In Massachusetts, for example, insurers can only add an accident surcharge if you're more than 50% at fault.

Some insurers include accident forgiveness at no charge, while others offer it as a purchased add-on. It may also be offered as a reward for good driving.

• Progressive offers three types of accident forgiveness: Small Accident Forgiveness, Large Accident Forgiveness, and Progressive Accident Forgiveness. Small Accident Forgiveness is automatically included in most states for new customers, and your insurance rate stays the same for your first claim that's less than or equal to $500. Large Accident Forgiveness is available to customers who have been with Progressive for at least five years and have remained accident and violation-free during that time. Progressive Accident Forgiveness can be purchased when you buy or renew your auto policy.
• GEICO Accident Forgiveness can be earned or purchased in states where it is available. It is per policy, not per driver, so if you have multiple drivers on your policy, any eligible driver can use this benefit once.
• Liberty Mutual offers Accident Forgiveness as an additional coverage that can be added to your auto insurance policy.
• Allstate: You can sign up for accident forgiveness when you start your policy.
• Amica: Accident forgiveness is included in Platinum Choice Auto plans.
• Farmers: Accident forgiveness forgives one at-fault accident for every three years without an accident.
• Nationwide: Accident forgiveness extends to every driver on a policy, but only allows one forgiven accident per policy.
• Safeco: First accident forgiveness is offered as a perk for drivers who’ve gone a certain number of years without an at-fault accident.
• Travelers: Accident forgiveness is available with the purchase of a Responsible Driver Plan.

Surcharging

The surcharge amount and duration vary depending on the insurer's policies and the type of violation. For instance, a surcharge for a minor traffic violation may only last a year, while a DUI conviction could result in a permanent record. The surcharge usually begins at the policy's renewal and remains until the renewal after the ticket surcharge period ends. During this time, customers can shop around for new insurance, although the new insurer will also apply a surcharge until the period ends.

To avoid surcharges, it is advisable to maintain a clean driving record, pay premiums on time, and consider paying out of pocket for minor at-fault accidents instead of filing a claim. If a surcharge is applied in error or if a long-term customer has a good record, they can dispute the charge with their insurance agent. However, some states prohibit insurance companies from waiving surcharges once assessed.

It's important to distinguish between a surcharge and a rate hike. A surcharge is a penalty for a specific incident, while a rate hike is a general or individual increase that may be due to factors like adding a teenage driver or moving to an area with more traffic.

No-fault insurance

Accidents generally stay on your insurance record for three to five years, but this can vary depending on the state you live in and the severity of the accident. In California, accidents stay on your record for at least three years, but this can be up to ten years if the vehicles involved include a DUI conviction. In New York, an accident will show up on your record for four years, while in Michigan, points stay on your license for at least two years, and convictions stay on your record for at least seven years.

• Hospital and medical expenses resulting from the accident
• Income losses resulting from the inability to work
• Cost of replacement services (if your injuries affect your ability to do housework or drive, for example)
• Funeral costs if someone died as a result of the accident

Claims history

Most car insurance companies keep your claims on record for three to five years, although the exact length of time can vary by state and insurance company. For example, in California, most accidents and minor violations stay on your driving record for three years, while in New York, an accident will show up on your record for four years. In Michigan, points stay on your license for at least two years, but convictions stay on your record for at least seven years.

You can check your car insurance claim history by asking your previous or current insurer for a letter of experience, which shows detailed information about your policy, including all claims made against it. Alternatively, you can request a copy of your CLUE (Comprehensive Loss Underwriting Exchange) report, which is maintained by data analytics company LexisNexis. A CLUE report typically contains up to seven years of claims history for auto and home insurance policies.

Frequently asked questions