Car accidents can be mentally, emotionally, and financially overwhelming. The aftermath of an accident entails consequences for everyone involved. One of the many concerns drivers have after a crash is how long the incident will affect their driving record and insurance premiums.
The answer can vary depending on the circumstances of the accidents and the specifics of your insurance policy, as well as whether or not you’re at fault for the accident. We’ll explore how accidents impact insurance and the potential ramifications they can have on your record down the line.
How Does an Accident Impact Insurance?
When you’re involved in an accident, it’s very likely your auto insurance rates may increase, especially if you’re found at fault. Insurance companies tend to view drivers with a history of accidents as higher risk, which can result in higher premiums. In addition, there are a variety of factors that can determine how much your insurance rates increase after an accident. These include:
- Your insurance provider
- Past driving record
- Claims history
- Geographic location
- Demographics such as age or gender
At-Fault Accident
If you’re found to be responsible for an accident, your insurance rates are likely to rise. This is because your insurance provider has to pay for damages related to an accident you caused, and they will recover those costs by increasing your premiums.
Depending on the severity of the accident, your premiums may rise significantly and stay high for years. The actual timeframe for this depends on how long the insurance company considers you a high-risk driver.
Not At-Fault Accident
Your insurance rates may see an impact even if you are not at fault for the car accident. If your insurance company plays a role in paying part of your claim such as in “no-fault” states, your rates could see an increase. Some insurance companies may increase your premiums marginally due to the potential risk of future accidents.
Do Insurance Companies Report Accidents to the DMV?
Car insurance companies do not generally report accidents to the DMV. However, in many states, it is required by law to report accidents to the Driver License Bureau under certain circumstances. For example, in Missouri, it is required to report accidents to the Driver License Bureau if the following are true:
- The accident happened less than a year ago,
- The accident involved an uninsured motorist, and
- The accident caused property damage of more than $500, or someone was injured or killed.
How Long Do Accidents Stay on Your Record?
While the DMV may maintain a full record of your driving history, insurance companies will likely only look at the last few years of driving incidents to determine your rates. The exact time of this depends on the state you live in and how severe the accident was.
Typically, this lasts between 3 and 5 years but can vary depending on factors such as:
- State Laws: Some states may keep accidents on your record longer than others.
- Severity of Accident: Serious accidents or those involving multiple injuries may be reported for a longer time.
- Insurance Policy: Different insurers may have different time frames for how long accidents impact your premiums.
It’s important to check with the specific laws of your state and discuss the impacts of an accident with your insurance provider.
What is Accident Forgiveness?
Accident forgiveness is a benefit that some insurance companies offer drivers. This allows drivers to avoid an increase in premiums after their first accident, even if they are at fault. While some policies charge an additional premium for enrolling in accident forgiveness, other companies give drivers the ability to earn accident forgiveness by maintaining a good driving record for a certain number of years.
If you’re eligible for accident forgiveness, your rates may not increase after a first-time accident, but future accidents or switching insurance providers can still result in higher premiums.
Trust DM Injury Law’s Personal Injury Lawyers to Guide You Through the Aftermath of a Car Accident
Dealing with the aftermath of a car accident is never easy. Not only are there potential injuries, damages, and claims you need to handle, but you also need to consider the long-term impacts on your driving record and premiums.
If you’ve been in an accident and need legal guidance, DM Injury Law’s experienced car accident lawyers can help. Our team specializes in navigating complex personal injury claims, helping victims navigate insurance claims, negotiate settlements, and ensure their rights are protected.
Reach out to the team today for a free consultation. We’ll help you understand the process and guide you through every step of the way.
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