Car accidents can have significant and lasting effects on your insurance rates, often leading to higher premiums for years. Many drivers wonder how long a car accident stays on their insurance record and when they can expect their rates to return to normal.
While the exact timeframe varies depending on the insurance company and state, New Jersey law states that most accidents fall off an insurance record in three years. It’s important that drivers understand this process so they can manage their insurance costs and take steps to improve their records.
How Long Do Accidents Stay on an Insurance Record?
Most insurance companies keep a record of accidents for three to five years. However, the exact length depends on the severity of the accident, who was at fault, and the insurer’s policies.
- Minor accidents or fender benders typically remain on a record for around three years.
- More serious accidents, especially those involving injuries or significant property damage, may stay on for five years or longer.
- DUI-related accidents or other major violations can impact insurance rates for ten years or more in some states.
The clock usually starts from the date of the accident, not the date the claim was resolved.
How Do Insurance Companies Use Accident Records?
Insurance companies assess a driver’s accident history to determine risk. Typically, a driver with a clean record will pay lower premiums than someone with multiple accidents who may be considered high-risk.
After an accident, insurers may:
- Increase premiums due to the added risk.
- Remove discounts that reward safe driving.
- Reevaluate policy eligibility, especially if a driver has multiple claims.
While some insurers offer accident forgiveness programs, not all accidents qualify. Drivers should check their policy to see if they have coverage that protects them from rate increases after a first-time accident.
Do At-Fault and Not-At-Fault Accidents Affect My Record Differently?
Yes, whether a driver was at fault plays a role in how long an accident affects their insurance.
- At-fault accidents usually have a greater impact on insurance rates and stay on records longer.
- Not-at-fault accidents may still appear on a record, but they usually don’t result in significant premium increases.
In some states, insurance companies cannot raise rates for accidents where the driver was not at fault.
However, insurers still consider accident frequency when evaluating risk. Even if a driver wasn’t responsible, multiple accidents on record could lead to higher premiums.
How Can I Reduce the Impact of an Accident on My Insurance?
While vehicle accidents stay on your record for a set period, there are still some ways to lessen their impact:
- Maintain a clean record going forward. Avoid additional claims, tickets, or moving violations.
- Ask about accident forgiveness. Some insurers offer this benefit, which prevents a first-time accident from affecting rates.
- Take a defensive driving course. Many insurance companies offer their drivers discounts for completing an approved safety course.
- Compare insurance rates. Shopping around for new coverage may help find a better rate, even with an accident on record.
- Increase your deductible. Paying a higher deductible can lower your monthly premiums, though it will mean paying more out of pocket for any future claims.
When Do Insurance Rates Go Back to Normal?
Insurance rates generally decrease once an accident falls off the record. After three years, if no new claims or violations occur, drivers typically see their premiums return to pre-accident levels.
Some insurers gradually lower rates each year that passes without another incident, while others adjust premiums only when the accident is fully removed.
Most car accidents stay on an insurance record for three to five years, depending on the severity and insurer policies. At-fault accidents have a more significant impact than not-at-fault ones, and major violations like DUIs can remain on record for a decade or more.
At Folkman Law, we understand that, while accidents can lead to higher premiums, by maintaining a clean record, exploring discounts, and comparing competitive policies, you can better manage your insurance costs until an accident is removed.
If you’ve been injured in a crash that wasn’t your fault, our experienced car accident lawyers can help you seek justice and fair compensation.
