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How Long Does It Take For An Accident To Fall Off Your Insurance?

When you get into an accident, your auto insurance premium increases. Finding extra money for additional insurance costs is stressful. This stress does not last forever. 

An accident stays on your record for three years, and all insurance companies have the ability to see it. You cannot switch your insurance company to get out of the costs of being in an accident. This is especially true if the accident happened within the last three years.

Does My Premium Automatically Drop After Three Years?

Once you pass that three-year mark, a few other factors dictate the status of your premium. Your premium may not automatically go down, depending on the rules of the insurance company. Car insurance providers like to look at multiple factors before dropping your premium.

The length of time with your provider is a major factor. The longer that you have had a clean record with one provider, the more likely it is for your premium to drop. Providers also look at your age, your address, and the gravity of the original accident.

Each of these things depends on the individual. Living in an accident-prone area at a young age may keep your premium high. Having a clean record since the accident might lower your premium. It truly depends on the circumstances.

What Circumstances Can Raise My Premium?

Car insurance companies are typically forgiving of minor accidents. A small speeding ticket might not raise your premium. If the accident was not your fault, it might not even ding your record. One mistake backed up by a clean driving record will not hurt your premium.

Multiple minor accidents may hurt your premium. Once your insurance company considers you accident-prone, expect your premium to go up. Try not to collect too many minor mistakes. Scratches on your car, for example, do not always have to be reported to your insurance company.

Consider the cost of your deductible, and compare it to the cost of the damages. If you can afford to fix the damage without hurting your wallet, do so. This reduces the number of minor mistakes in your insurance company’s eyes, and it saves you money in the long run.

Will My Premium Raise If The Accident Was My Fault?

You got into an accident, and it was your fault. In this case, you have to contact your insurance company. Some insurance companies forgive one at-fault accident within a certain period. You have six years to avoid an at-fault accident to avoid a rise in your premium.

Keep in mind that this includes collision coverage. Single-driver accidents are considered your fault. Comprehensive accidents are not your fault. Multiple collision claims, such as hitting your own mailbox multiple times, will raise your premium. However, a flood damaging your car is not your fault, and it will not raise your premium.

Once the insurance company finds you at-fault without forgiveness, they will raise your premium. The new price of your premium depends on the company and your situation. Expect the raise to go as high as 50% and be as low as 3%. Either way, a higher premium price hurts your wallet. 

Avoid claiming every collision, especially if you are at fault. In case of an at-fault accident with another driver, try your best to avoid an accident for the next three years. Younger drivers should expect their premiums to skyrocket before older drivers with clean records. Remember that it is truly dependent on your auto insurance company, and you should check with them.