After your car is repaired and your insurance claim is resolved, you’d like to forget the accident ever occurred. However, auto accidents remain on your driving record and have a longer-term impact on your insurance costs than you may imagine.
How long? That depends on several things, including where you live, whether you were at fault, and the gravity of the infraction.
How long will an accident stay on my record?
A car accident can stay on your record for years, but the actual term varies greatly depending on the state and the infractions involved.
Here are some instances. In California, the majority of accidents and minor violations remain on your driving record for three years. Accidents involving more serious offenses stay on your record for longer. A DUI conviction will follow you around for ten years. Even if you were not at fault, you must report the accident. According to the state’s insurance department, every accident will be recorded if you caused more than $750 in property damage or if anybody was hurt or killed.
In Florida, however, a crash will appear on your record if you were issued a traffic citation as a result of the accident. According to the Florida Department of Highway Safety and Motor Vehicles, the majority of charges remain on your record for three to five years. However, more significant infractions persist for a longer period of time — the state keeps track of alcohol-related violations for 75 years. So, if you cause a wreck while drunk in Florida, the incident will most certainly be on your record for the rest of your life.
For the most accurate answers to your specific circumstance, consult your state’s department of motor vehicles website.
What does that mean for insurance rates?
Once an accident or violation has been removed from your DMV record, it usually has no effect on your car insurance rates.
In fact, the amount of years insurers check back on your driving history varies by firm and state. Some states limit how long insurance can use at-fault accidents to calculate premiums. For example, in Massachusetts, at-fault accidents can have a six-year impact on premiums.
But it wasn’t my fault
If you weren’t at fault in an accident, it may not count against you at all. (This varies per company.) USAA, which only offers auto insurance to service members and their families, states on its website: “If we agree that you had no responsibility for an accident, your premium will not be affected by an accident that is not your fault.”
States employ different approaches. In the 12 states with no-fault insurance, your insurance premiums are more likely to rise after a collision, even if you are not at fault. That’s because in these states, everyone involved in an accident files an insurance claim for their own injuries (as well as those of their passengers). As a result, regardless of whether you were at fault in the accident, your insurer must pay.
However, several jurisdictions restrict insurance firms from increasing your premium if the accident was not your fault. In Massachusetts, for example, insurers can only assess an accident surcharge if you are more than 50% at fault.
A premium increase following an accident typically lasts three to five years, though this varies by provider and state. As long as you do not cause any other accidents, the cost will usually reduce over time.
How to lower insurance rates after an accident
A normal response to all of this could be, “OK, so what do I do now?”
Your current coverage may have been the greatest option at one time, but circumstances change. Following an accident, it gets more difficult to lower your insurance rate.
Check with your insurance company to see if they provide defensive driving discounts. Most states provide classes both in person and online, and proof of completion is valid for up to three years depending on the state and provider.
You can also look for more economical coverage from other providers. Drivers can switch insurance companies at any time, and there is no penalty for requesting quotations for new plans.
Just make sure to conduct your research before making any adjustments to your coverage. Leaving your present provider may result in a lapse in coverage, raising your future insurance costs or causing you to be denied coverage.
