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How long does an accident stay on your record?
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Car insurance premiums are based on several factors like your vehicle make and model, your age, your driving record and more. But if you are in an accident, your rates will likely change — and not for the better. An accident that results in an insurance claim will likely cause your premium to increase when your policy is renewed. However, Bankrate’s insurance editorial team is here to explore actions you can take to keep car insurance costs to a minimum.
How long does an accident stay on your insurance record?
To note, there is a difference between how long an accident stays on your record and how long an accident affects insurance. The Department of Motor Vehicles within each state processes and maintains records for all registered drivers. However, each state has its own insurance laws, so details vary by location.
Insurance companies have limited access to data. Typically, insurers can only view the previous seven years of driving records. The companies use this information to help inform premiums, usually increasing rates for three to five years following an accident. So, although accidents will technically always be on your record, they will likely only affect the cost of your insurance for a few years.
How much does insurance go up after an accident?
The average full coverage premium increase following an at-fault accident is 41 percent. Insurance companies calculate premiums based on risk, as high-risk drivers are more likely to file claims for accidents and other driving incidents. The more accidents and tickets that you have on your record, the higher your insurance rates will likely be.
Drivers who are involved in an accident that causes serious injury to others or extensive property damage may see some of the most extreme rate increases. The same goes for those who are caught driving while intoxicated. In some cases, an insurer may even deny your policy renewal.
The table below indicates how much more drivers with an at-fault accident on their record pay for car insurance than drivers with clean driving records.
| Average annual premium for no incident | Average annual premium after an at-fault accident | |
|---|---|---|
| Average premium | $2,543 | $3,580 |
| Male | $2,551 | $3,591 |
| Female | $2,535 | $3,564 |
What is accident forgiveness?
Some auto insurance companies offer accident forgiveness programs. Accident forgiveness is a coverage option wherein your policy would not be surcharged after your first at-fault accident. You may be eligible for this coverage if you have no tickets or at-fault accidents on your driving record for the past three to five years. Generally, you will pay an additional premium for enrolling in an accident forgiveness program.
Every insurer may have different availability and eligibility requirements for accident forgiveness, but it could be worth adding to your policy if available. Note that even if the accident is “forgiven” by your current insurance company, it may affect the quotes you receive from other companies if you try to switch insurers. The best way to find out which insurance company can offer you the best deal is to shop around.
Note that how long at-fault accidents stay on your record may vary, as well. To ensure you’re not overpaying at any given time, it may help to gather new quotes periodically, such as every six months.
How to lower your car insurance rate following an accident
No matter the circumstances, you may be able to offset the increase to your insurance premiums following an accident. Most car insurance companies offer incentives and discounts that may help policyholders save money on car insurance. To lower your rate after a car accident, consider taking the following steps:
- Look into telematics programs: Many insurance providers offer telematics programs that track your driving habits in real time and send information to the company. Some providers offer a discount for simply installing the program. Plus, you might be able to earn a bigger discount by consistently exhibiting safe-driving behaviors.
- Enroll in a defensive driving course: Some insurance companies reward you for improving your driving skills. Check the list of your state’s approved driving courses and see which ones your insurance company acknowledges. When you complete the course, your insurer might reduce your rates.
- Consider increasing your car insurance deductibles: If you have full coverage, increasing one or both of your deductibles could decrease your premium. But keep in mind that higher deductibles typically mean higher out-of-pocket costs in the event of a claim. Most insurance professionals recommend exploring other options for savings before increasing your deductible.
- Check for other discounts: Each insurance company offers its own discount opportunities, and many of them allow you to combine discounts for even bigger savings. Common discounts include multi-car discounts, homeowner discounts, loyalty discounts and automatic payment discounts.
- Improve your credit: While this takes time, doing things like making payments on time, paying down debts and checking your credit report for inaccuracies can improve your creditworthiness. Some states allow insurance companies to use credit-based insurance scores to set insurance rates, so maintaining good credit might help to lower your premium.
Frequently asked questions
Methodology
Bankrate utilizes Quadrant Information Services to analyze 2024 rates for ZIP codes and carriers in all 50 states and Washington, D.C. Rates are weighted based on the population density in each geographic region. Quoted rates are based on a 40-year-old male and female driver with a clean driving record, good credit and the following full coverage limits:
- $100,000 bodily injury liability per person
- $300,000 bodily injury liability per accident
- $50,000 property damage liability per accident
- $100,000 uninsured motorist bodily injury per person
- $300,000 uninsured motorist bodily injury per accident
- $500 collision deductible
- $500 comprehensive deductible
To determine minimum coverage limits, Bankrate used minimum coverage that meets each state’s requirements. Our base profile drivers own a 2022 Toyota Camry, commute five days a week and drive 12,000 miles annually.
These are sample rates and should only be used for comparative purposes.
Gender: The following states do not use gender as a determining factor in calculating premiums: California, Hawaii, Massachusetts, Michigan, North Carolina, Pennsylvania.
Mary Van Keuren has written for insurance domains such as Bankrate, Coverage.com, and The Simple Dollar for the past five years, specializing in home and auto insurance. She has also written extensively for consumer websites including Reviews.com and Slumber Yard. Prior to that, she worked as a writer in academia for several decades.
