The length of time that an accident stays on your record varies by state and other factors.
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Car accidents can be traumatic emotionally, physically, and financially. Even if everyone walks away from the incident with little or no injury, the aftermath can still have long-term consequences.
In addition to managing any medical payments and repairing your vehicle, the accident can stay on your record for years, affecting your insurance rate.
Here’s what you need to know about how long car accidents stay on your record:
Most car accidents will stay on your record for three to five years in the eyes of insurance providers — an accident that happened seven years ago could still be on your record, but most insurers won’t consider it when determining your rate. The exact amount of time will vary depending on the state you live in.
For example, in California, collisions stay on your driving record for three years unless the collision was reported by law enforcement and the incident involved a commercial vehicle or hazardous materials. In that case, the accident will remain on your record for 10 years. In Michigan, however, most at-fault accidents stay on your record for seven years. Accidents involving fatalities or DUIs stay on your record permanently.
You can find out the specific time frame for your state by checking your state’s Department (or Bureau) of Motor Vehicles website.
Most states also have a point system. Under this system, drivers get points for various traffic violations. These points don’t affect how long accidents stay on your record, but you can lose your driver’s license if you have too many points.
Accidents can affect your points if you violate traffic laws and cause a collision. For example, in Nevada, disobeying a traffic sign can get you four points — so if you run a stop sign and hit another car, you could rack up those points. You could also get six points in Nevada if you fail to give your information at the scene of an accident. Since accidents stay on your record for several years, you can expect your insurance rate to take a hit for some time as well.
The amount that your rate increases after an accident depends on your insurer. For example, Progressive says its customers who have an at-fault accident see an average increase of 28% nationwide. Increased rates stay on your insurance for an average of three years.
Multiple factors determine how much your car insurance rates will increase following an automobile accident. Some common things that could determine how much your rates go up include:
If you want to lower your insurance premium, you have a few options. It’s a law in all states (except New Hampshire and Virginia) to have proof of auto insurance, so cutting your policy isn’t usually an option. Maintaining coverage can protect you against thousands of dollars in expenses if you’re involved in a serious accident.
Some ways you can save money on your car insurance include:
Some insurance carriers offer an accident forgiveness program. While the program varies by insurer, some features are generally the same across providers.
When you pay for accident forgiveness, you avoid rate increases after an accident when claims fall under a set ceiling. For minor accidents, that might be around $500, while more extensive policies offer forgiveness against more expensive claims.
Your ability to qualify depends on the state you live in and your insurance provider. Many carriers require drivers to be accident-free for a set number of years to qualify for larger forgiveness benefits.
You’ll most likely pay extra for accident forgiveness, though some major insurance providers offer incentives that allow you to earn free accident forgiveness. You may consider purchasing accident forgiveness if your insurance policy has higher-risk drivers (like teens or older parents).
Obtaining new coverage following a car accident can be more difficult, but it’s possible. If you’re involved in a serious accident, you may have an even harder time finding a good auto insurance rate. However, a first-time accident typically won’t affect your ability to find affordable car insurance. You may need to shop around if you have multiple accidents or traffic violations on your record.
Several factors could affect your ability to get insurance in the future. Some things that could make it more difficult to find an insurer that’s willing to cover you include:
If your current provider doesn’t renew your coverage, you may need to find a carrier that works with riskier drivers. Your premium will likely be higher, but if you can maintain a good driving record for a few years, you may qualify for better rates down the road.
Disclaimer: All insurance-related services are offered through Young Alfred.
Angela Brown is a student loan, personal finance, and real estate authority and a contributor to Credible. Her work has appeared in Fox Business, LendingTree, FinanceBuzz, and Yahoo Finance.
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