How A Car Accident Impacts Your Insurance Rates

Accidents are considered by many to be a part of life. This general mindset has always been that the car insurance companies are out to punish you for the simplest car accident. Commonly the given excuse is that it simply wasn’t the drivers fault. Many times this rationale is repeated in single-driver car accidents as well. An animal jumped out in front of a car, or a word of mouth account of a two vehicle accident with only one car still remaining at the scene of the accident. The person who claims no responsibility in the accident find themselves with higher auto insurance rates. So, is this a common occurrence?

Many times at a customer’s renewal date, their rate will increase simply from inflation of the market. It also depends on a number of important factors regarding the crash. What different claims did they file? Even with a proven accident-free driving record, insurance companies will always increase your rates with a one car accident or any accident that could be considered your fault. Not receiving a citation is no reason to get off the hook when it comes to your car insurance rates.

The length an accident will remain on your record depends on where the driver resides. State legislatures and local driving laws current to the state and county are the deciding factor on the length of time that driving violations will remain on the drivers record. A person who is curious about their local laws should contact their local DMV. For example, in the state of Texas, the Texas Safety Department has determined that moving violations should stay on a drivers record for five years. A common length of stay is only three years, as in the case of New York state. There are, of course, exceptions in different states. For example, in Texas more serious violations can stay on the driving record forever, such as Driving Under the Influence (DUI). Every wreck that is investigated by any law enforcement is typically kept on the record. Arizona’s policy is for a 39 month period in which insurance companies can view an individuals record.

Also realize that many times your rate will not go up until the actual renewal date. This also means that it will not change back magically when the offense is off your record. You will again have to wait until the renewal date.

January 10, 2010, Posted by Rainy Day Mitch