How long does an accident affect your car insurance rate?

Oftentimes, car insurance rates increase following an accident. While this can trigger an increase in your car insurance rates, the change isn’t permanent. 

Typically, drivers can expect rates to be impacted for the next three to five years. How long an accident stays on your record isn’t always clear because it depends on several factors, including the severity of the accident, who is at fault, and the state you live in. 

How do accidents affect car insurance rates?

How are car insurance rates affected after an accident? Typically, after an at-fault accident, car insurance rates are going up. 

An auto accident can continue to impact your insurance rates for the next three to five years, but this depends on the state and auto insurance company. Luckily, you can expect a decrease once the accident falls off your record.

Here’s more on how at-fault accidents affect auto insurance and what you can do to find more affordable coverage. 

Why Your Driving Record is an Important Factor in Determining Rates

Every driver has a record that provides important details about their driving history, including accidents and violations, such as speeding tickets. Using this information, insurance companies can calculate your auto insurance rates.

The length of time accidents and violations stay on your driving record varies. Depending on the state and severity, you can expect them to remain on your driving record for several years. However, some accidents and violations are permanent.

In Wisconsin, accidents and violations can remain on a driver’s record for up to five years. While in California, the driving record can include accidents and violations for up to ten years.  You can confirm with your local DMV how long accidents and violations stay on a driver’s record. 

How many years do insurance companies go back? 

Just because an accident or violation can stay on your record for years doesn’t always mean it will impact your rates. Insurance companies may only review your record up to the last five years. 

So if you had an accident six years ago, it might not be factored into your insurance rates.

What happens if I have accident forgiveness?

Accident forgiveness is optional insurance coverage that protects drivers from rate increases following an at-fault accident. If you are involved in an accident and have accident forgiveness, you shouldn’t see a change in your insurance rates.

Here are a few car insurance companies that have accident forgiveness.

• Allstate
• Amica
• Farmers
• Geico
• Liberty Mutual
• Nationwide 
• Progressive
• Safeco
• Travelers

Depending on the insurance company, accident forgiveness must be purchased as an add-on or earned by drivers who continue to exhibit safe driving habits and avoid accidents for a certain number of years.

If you aren’t sure if you have accident forgiveness, contact your auto insurance company to confirm. 

What happens if I wasn’t at fault?

Your state’s laws play an important role in whether or not an accident impacts your auto insurance rate. Depending on where you live, your rates cannot be increased if you are involved in an accident that you did not cause. 

In states with no-fault insurance, drivers often see an increase regardless because drivers file claims with their own car insurance company following an accident. 

Additionally, drivers in certain states may see a surcharge upon renewal of their policy. Depending on the state, instead of increasing rates, insurance companies can apply surcharges for up to three years. 

Get in contact with your insurance company to determine exactly how insurance rates are handled following an accident.

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Can my insurance coverage be canceled after an accident?

Yes, your insurance coverage can be canceled after an accident, especially if you have more than one on your record or the violation was severe. 

Auto insurance companies may weigh accidents differently, so cancellation or non-renewal isn’t always the consequence, but it is possible. 

One example of when your insurance company may cancel or not renew your policy is if you were caught driving under the influence. This risky, unsafe behavior increases the likelihood of you filing claims, so the decision to no longer insure you would be the safest option. Find out how to cancel car insurance.

How to Lower Auto Insurance Rates After an Accident

Here are some ways to find more affordable coverage if your auto insurance rates increase after an accident.

• Shop around. Request quotes from different insurance companies to confirm which offers the most affordable coverage. 

• Adjust your coverage. Remove coverage you don’t need and/or increase your car insurance deductible on collision and comprehensive coverage. 

• • Enroll in your auto insurer’s usage-based insurance program. Earn a discount for your good driving habits, which are monitored using a telematic device or your smartphone. 
  • Drive less. If you don’t drive often, you can enroll in pay-per-mile car insurance or request a low-mileage discount. 
  • Bundle insurance coverage. If you have multiple policies or are interested in purchasing more than car insurance, you can bundle coverage and save. 

• Improve credit score. Insurance companies view drivers with poor credit as risky, so raising your credit score can make a difference if your low credit score negatively impacts your rates. 
• Improve driving habits. Improving your driving habits helps you avoid more accidents and violations in the future, showing your insurance company that you’re less of a risk to insure.

Remember, once your accident no longer impacts your rates, your rates will likely decrease.

What other factors impact auto insurance rates?

Your driving record is one of many factors that affect your car insurance rates. Rating systems vary, but insurance companies use similar information to calculate rates. 

Here are common factors used by insurance companies to calculate car insurance rates. 

• • Age. Drivers under age 25 aren’t as experienced, so they are likely to file a claim, meaning they have higher rates. 
  • Gender. Compared to male drivers, female drivers are safer, more responsible drivers, so they are less likely to file a claim. 

• Location. Drivers are likely to file a claim when there are high vandalism, theft, and accident rates in their state or neighborhood. 

• Type of vehicle. Insuring certain vehicles is risky due to the cost of repairs, theft rate, and safety features. 

• Type of coverage. The cost of coverage varies, so drivers can expect rates to be higher if they purchase full coverage and less when they purchase liability coverage. 
• Annual mileage. Low-mileage drivers don’t get behind the wheel often, so they are less likely to file a claim. 
• Credit. Drivers with good or excellent credit are seen as safe drivers, so they are less likely to file a claim. 

With an accident on your record, you still might see higher rates than what you were offered prior to the accident, but you still might be able to find something affordable. 

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What information do I need to provide when requesting quotes? 

You’ll need to provide the following personal information when comparing auto insurance quotes online. 

• Vehicle information, including make, model, year, and VIN
• Annual mileage
• Location
• Parking accommodations
• Type of coverage you want to purchase and deductibles, if applicable
• Number of drivers in your household
• Age of drivers
• List of completed safe driving courses

To get accurate auto insurance quotes, it is best to be upfront about your recent accident. If this information isn’t provided, the quoted rates will likely increase once your driving record is reviewed. 

The Bottom Line on How Long an Accident Affects Auto Insurance

Avoiding an accident is the easiest way to keep your car insurance rates low. Insurance companies will go back as far as five years when determining your rates, and you may be considered a high-risk driver for longer if you were involved in a DUI or severe auto accident.

State laws also determine how long an accident affects car insurance, so shop around with at least three local companies to find low rates. Use our comparison tool below to compare high-risk auto insurance quotes in your city for free.

Being a safe, responsible driver is key to finding affordable auto insurance. When you avoid accidents, moving violations, and traffic violations, you keep your driving record clean. As a result, you aren’t viewed as a risky driver by insurance companies, which gains you access to the cheapest rates possible.

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