What is Answerbag?

Ask questions and share your knowledge with the world here on Answerbag. Get the best answers where there are no duplicate questions and questions are always open - our community of over 1,142,000 will find your answer!

Join For Free!
 

How Long Does an Accident Stay on Your Insurance?

Sunday, June 28, 2009
Related Tags: insurance | accidents | affect | carriers | fault
 

Instructions

Significance of Accidents on Insurance

  • Step 1:
    There are many different factors that can affect the premium you pay for car insurance, one of which is an accident. The rates vary from state to state, but if you have an accident that is your fault or even one for which the insurance company can take no recourse, such as a collision with a large animal, it will affect the premium you pay for auto insurance.

How Long Will an Accident Affect Your Insurance Premiums?

  • Step 1:
    The length of time that an accident stays on a person's driving record varies by state, but it's usually between three and five years. Insurance carriers also have their own underwriting policies, but for the most part they do not not consider accidents more than three years old unless it involves a drunk driving conviction or an accident in which one or more people died. In some states accidents remain on a person's driving record indefinitely but whether an insurance company will make use of those figures is at the discretion of the individual carrier.

Not All Accidents Affect Your Insurance Rates

  • Step 1:
    Not all accidents have an effect on your insurance rates. In most cases, if the accident was not your fault the insurance company will not raise your rates. However, do not assume this is the case with all carriers--you should question any carrier before you purchase an auto insurance policy.

Chargeable Accidents

  • Step 1:
    If you are in an accident that is your fault, most insurance companies will surcharge your policy 25 percent or more for at least three years following the accident. Some carriers do have an "accident forgiveness" period for the first accident, but again, this is at the discretion of the insurance carrier. Collisions with emergency vehicles (police cars, ambulances, and fire trucks) are usually considered non-chargeable accidents because these vehicles are allowed to disobey traffic signals in certain circumstances.

Ask Questions Before You Buy Insurance

  • Step 1:
    Because of the differences that may exist among insurance companies you need to know how your accident will affect your premiums in your state. Do not assume all states or insurance companies have the same policies regarding accidents. Know what to expect and how your insurance company will view the situation.

Related Content
How Much Does Car Insurance Go Up When You Have an Accident?
If an auto accident is your fault, your auto insurance premium rate is going to increase. A worst-case scenario is that some insurers may even cancel your auto insurance policy after you have an...
How to Lower Auto Insurance
Auto insurance is a large expense for the average household. Premiums, especially for newer and larger vehicles, can be quite high. Many variables factor into the premium amount. While many of...
Definition of Collision Insurance
The National Highway Traffic Safety Administration (NHTSA) reported 39,189 fatal car crashes in the United States in 2005. Car crashes are an inevitable fact of driving on the highways and other...
Does a Car Accident Increase Insurance?
A car accident could have a substantial impact on your car insurance rates. Much depends on the insurance carrier you are with as well as the dollar amount of the claim and the frequency of your...
About Motorcycle Insurance Rates
You've checked the want ads in the newspaper, you've gone online, and you've spent a few Saturdays at the local Harley dealership to find the motorcycle of your dreams. You realize that you'll be...