If you’ve been in a car accident, you know how stressful it can be. After filing a claim and working to make sure you and your car are safe, you may be wondering how long a claim will stay on your driving record.
Most states allow claims to remain on your driving record for three to five years. While this may not seem like a big deal, filing a claim with your insurance company will almost always cause your monthly auto insurance payment to go up. To find affordable auto insurance options near you, simply enter your ZIP code in the quote tool above.
how long does a claim stay on your record?
The standard time a claim remains on your driving record is three to five years. Depending on where you live, you may see a small variation within this time period. For example, if you are in a car accident and have to file a claim, you can expect your rates to increase and stay the same for at least three years after your claim is settled.
Some states increase the time a claim stays on your record if the claim is serious. For example, certain states may allow standard accident claims to be struck off your record after three years, keeping a DUI conviction on your record for five years.
If you have one or more claims on your record, you may be wondering why it matters. Most people care that accident claims remain on their records for two reasons: points on their license and auto insurance rates. To learn more about getting auto insurance after a DUI, click here.
how does your driving record affect your auto insurance rates?
You’ll likely enjoy affordable auto insurance rates if you have a clean driving record, which means no accidents, tickets, or claims on your driving record.
Once you have a claim on your record, your rates may automatically increase. This increase is due to the fact that insurance companies are dedicated to evaluating the risk.
With one or more accident claims on your record, you seem to be a bigger risk for most insurance companies. Because the companies assume that you are more likely to file a claim and generate a payment, the insurance companies will charge you more in terms of monthly premium to make up the difference.
Finally, when you no longer have a claim on your record, you will be able to enjoy rates similar to those above. But for about three years, your claim will likely affect your auto insurance rates.
what is a car insurance history report?
An auto insurance history report, also known as a comprehensive loss (track) underwriting exchange report, is a report that outlines a driver’s claims information and history.
a trail report contains the following information:
- date of birth
- policy number
- date of loss(es)
- type of loss(s)
- amount paid by the insurance company
- description of the covered property
- property address
- marital status
- driving history
- credit score
- zip code
- vehicle type
- claims history
When applying for insurance coverage for your vehicle, the company may request a track report to view your claim history before issuing you an insurance quote. If your track report shows multiple claims, you likely have higher-than-average car insurance rates.
Track reports show the claims you have filed for the last seven years, so even if a claim appears on your track report and increases your insurance rates, this increase will only be temporary.
how much does auto insurance cost if i file a claim?
The amount you’ll pay for auto insurance depends on many factors. Companies consider a number of different things when issuing auto insurance rates. Some of the most common factors companies consider include:
If you are between the ages of 30 and 40 and have a clean driving record, you may have lower rates than the average for your state. conversely, if you have one or more claims on your record, your rates are likely to be higher than the average in your state.
The table below shows the average annual car insurance rates based on a person’s driving record.
As you can see, adding claims to your record, especially claims of a specific nature, can negatively affect your auto insurance rates. And what’s worse, your rates could stay high for several years.
how can i get cheap car insurance after i file a claim?
Once you file a claim, it may take a while for your insurance company to increase your rates. however, if your company hasn’t raised your rates or told you it would renew your coverage, you don’t need to change your auto insurance provider unless you want to.
In some cases, you may find that you have the lowest car insurance rates if you stay with the company you’ve had insurance with for the past few years. Several companies now offer options like accident forgiveness car insurance to policyholders, which could help you avoid a rate increase.
If you find that your company has raised your insurance rates, or if your insurance company refuses to cover your vehicle in the future, you’ll want to shop around to compare auto insurance rates from multiple companies.
By comparing rates from multiple providers, you’ll see which companies offer the coverage you want at a rate that fits your budget. If you need cheaper rates than you can find, you may want to consider lowering your coverage or raising your deductible.
Comparing rates takes time, so don’t rush the process. If you want to find the most affordable rates in your area, do your research before committing to insurance coverage.
car insurance claims and driving records: the bottom line
Car insurance companies care about your driving record. If you have one or more accident claims on your record, your auto insurance rates may increase for several years. in some cases, certain statements will matter more than others. For example, an insurance company will take a DUI conviction more seriously than a car accident.
You can expect your insurance rates to increase if a claim was recently added to your driving record. The rate increase could take a while, as some carriers don’t raise rates right away. but your insurance rates may increase several months after your claim is settled.
Some companies offer accident forgiveness, so you can check with your insurance provider to see if that’s something you can take advantage of. If you must look for less expensive insurance, check out a variety of companies to see what they have to offer at a price you can afford.
Enter your ZIP code in our online quote tool below to get quotes from multiple auto insurance providers near you.