How Long Does an Accident Stay on Your Insurance Record?

Car accidents can have financial implications beyond repair costs or medical bills. These incidents often influence auto insurance premiums for an extended period. Understanding how such events affect insurance is important for managing personal finances and anticipating future costs.

How Accidents Affect Insurance Premiums

After an accident, insurance companies reassess a driver’s risk profile, which can lead to adjustments in premium rates. Insurers often add a surcharge to the existing premium, particularly if the policyholder is found at fault. These surcharges are applied because an accident indicates an increased likelihood of future claims, making the driver a higher risk to insure. The exact amount of a premium increase varies based on the insurer, accident severity, and driver’s history.

An at-fault accident can lead to a substantial increase in full coverage car insurance rates, sometimes around 48% annually. Even not-at-fault accidents might result in a slight premium increase, as some companies view any claim as an indicator of higher risk. Filing multiple claims within a short timeframe can further escalate perceived risk, potentially leading to higher rates or policy non-renewal. Insurance companies adjust rates upon policy renewal.

Factors Determining the Duration of Accident Impact

The length of time an accident affects insurance rates depends on several factors, including state regulations and individual insurer policies. Many states have rules governing how long an accident can be considered when calculating premiums. Insurance companies have internal guidelines, with most applying surcharges for at-fault accidents for three to five years. For severe incidents, such as those involving significant damages or injuries, the impact might extend longer.

Fault determination plays a key role; at-fault accidents often lead to higher premium increases compared to not-at-fault incidents. However, some insurers may still raise rates after a no-fault accident, particularly if multiple claims are filed. The severity of the accident also matters; minor fender-benders might have a less pronounced or shorter-term effect than major collisions with extensive property damage or bodily injuries. A driver’s overall driving record influences the duration, as a history of multiple accidents or violations can prolong the period of elevated rates.

Understanding Your Driving and Insurance Records

Insurance companies rely on databases to assess a driver’s risk and determine premium rates. Two primary sources for this information are your Motor Vehicle Record (MVR) and the Comprehensive Loss Underwriting Exchange (CLUE) report. These records provide a comprehensive overview of your driving and claims history, influencing how insurers view your insurability and pricing.

Your Motor Vehicle Record (MVR) is maintained by your state’s Department of Motor Vehicles (DMV) or an equivalent agency. This document details your driving history, including driver’s license status, and traffic citations or violations. It also lists accidents you’ve been involved in, convictions for offenses like driving under the influence (DUI), and the accumulation of points if your state uses a point system. While some states may only show recent violations, covering the last five to ten years, others maintain lifetime driving records for serious offenses.

The Comprehensive Loss Underwriting Exchange (CLUE) report is a claims report generated by LexisNexis, a consumer reporting agency. This report provides a detailed history of personal auto and property claims, covering a seven-year period. It includes information such as the policyholder’s name, date of birth, policy number, and specifics about any claims filed, including the date of loss, type of loss, claim status (open or resolved), and the amount paid. Insurers use CLUE reports to understand a claimant’s history and potential future risk, helping them decide on coverage and premium levels.

Reviewing Your Insurance and Driving History

Regularly reviewing your driving and insurance records is a proactive step to ensure accuracy and understand how insurers assess your risk. Obtaining a copy of your Motor Vehicle Record (MVR) involves contacting your state’s Department of Motor Vehicles (DMV) or equivalent agency. Most states offer options to request your MVR online, by mail, or in person, for a small fee. The process and cost vary, but require providing personal identification.

To obtain your Comprehensive Loss Underwriting Exchange (CLUE) report, you can contact LexisNexis. Under the Fair Credit Reporting Act (FCRA), you are entitled to one free copy of your CLUE report every 12 months. You can request this report online through the LexisNexis Consumer Center website or by calling their toll-free number.

If you discover any errors or inaccuracies on either your MVR or CLUE report, dispute them promptly. For MVR errors, contact your state’s DMV directly. The process involves submitting a formal request for correction, with supporting documentation like police reports or court records.

For errors on your CLUE report, contact LexisNexis and initiate a formal dispute. LexisNexis is required to investigate the disputed information and has 30 days to resolve the dispute. Correcting these records ensures that insurers are basing your rates on accurate information, which can prevent unfair premium adjustments.