When Do Car Accidents Fall Off Insurance?

Car accidents often bring concerns about their long-term effects on insurance rates and driving records. Understanding how accidents are tracked is important for managing these impacts. The implications for your driving history and costs extend over time, varying based on several factors.

Impact on Insurance Premiums

Car accidents typically influence car insurance premiums for three to five years. This timeframe represents how long insurance companies generally consider past accidents when calculating new rates. The exact duration an accident impacts premiums is an internal underwriting decision, varying among providers. When an accident “falls off” an insurance record, it signifies the incident no longer substantially impacts premium calculations.

At-fault accidents can lead to a significant increase in premiums, sometimes by an average of 50%, with increases potentially lasting up to five or six years. Premiums often see the largest increase at the first renewal, gradually decreasing over time if no further incidents occur. Even if an accident was not your fault, some insurers might slightly raise rates or remove claim-free discounts.

Impact on Driving Records

Car accidents are recorded on your official state driving record, maintained by the Department of Motor Vehicles (DMV) or an equivalent state agency. The duration an accident remains on this official record can differ from how long insurance companies use it for pricing. Typically, accidents stay on official driving records for five to seven years, or longer for serious incidents.

State laws govern how long accidents and associated violations remain on these records. For instance, minor violations might remain for three years, while more severe offenses like driving under the influence (DUI) could stay on a record for ten years or even permanently. While points from traffic violations may expire, the violations themselves can still be visible for a longer time. This official record is distinct from the internal data used by insurance companies for underwriting purposes.

Factors Determining Duration

Several factors influence how long a car accident impacts both insurance premiums and official driving records. Whether the driver was at-fault or not-at-fault is a primary consideration; at-fault accidents generally lead to higher and longer-lasting premium increases. The severity of the accident, including damage, injuries, and financial cost, also plays a significant role. Accidents involving substantial damage or injuries are likely to result in more significant premium increases and remain on records longer.

The type of incident, distinguishing between collision claims, comprehensive claims, and any associated traffic violations, can affect the duration. Traffic violations incurred as a result of an accident, such as speeding or reckless driving, often add points to a driving record and can extend the period an accident impacts rates.

Specific state regulations dictate how long points or accident records remain on an official driving record, while different insurance companies have varying internal policies regarding how long they consider accidents for rate adjustments. Some insurers offer “accident forgiveness” programs, which can prevent a rate increase after a first at-fault accident, though eligibility varies.

Checking Your Records

Drivers can verify the status of accidents on their records by obtaining copies of their official driving record from their state’s DMV or equivalent agency. Most states offer options to request these records online, by mail, or in person, often for a small fee. This record provides a detailed history of traffic violations, points, and reported accidents.

Individuals can also inquire about their claims history with their insurance provider. A Comprehensive Loss Underwriting Exchange (CLUE) report, generated by LexisNexis, contains up to seven years of personal auto and property claims history. This report includes details such as the date of loss, type of loss, and amounts paid. Individuals are entitled to one free CLUE report annually, which can be requested directly from LexisNexis by phone or online. Regularly reviewing these records helps ensure accuracy and provides insight into factors affecting insurance rates.