Accidents involving vehicles can be both stressful and expensive, with long-term effects that could impact on both insurance premiums and rates.
Accidents on your record could remain for three to five years depending on state regulations and severity.
But that does not signify an irreversible situation – in time, your rates should drop again.
1. The Date of the Accident
Date of an accident can have a tremendous effect on your insurance rates. Most states set timeframes before an incident on your record is removed from view – though this varies by state and insurer.
As soon as you’re involved in a car crash, it’s vital that you report it immediately to both police and your insurance provider. When providing information about an incident such as date/time/vehicle make/model and damage sustained to authorities and insurers. Be ready with details such as date/time of incident; make/model of vehicles involved as well as witnesses involved and any photos from scene of vehicle. Be prepared to answer questions regarding driving history as these may help determine fault and overall impact on rates.
Dependent upon your specific situation, you may be required to file an injury claim with your insurer. Usually two to three years from the date of an accident are allotted for this process (this can differ depending on state laws and individual insurers), due to injuries sometimes not appearing until weeks or even months post-accident.
Filing an accident claim may also result in an increase in premium rates, since this indicates you as being high-risk driver – particularly if it was your fault in causing it. But this temporary premium increase should last only three to five years before returning back down again as long as you maintain safe driving practices.
After being involved in an auto accident, the best way to lower your insurance rates is to work with an agent who can negotiate more competitive quotes from different providers. You could also save money by taking part in defensive driving courses – they are available in most states and can either be completed online or in-person.
2. The Date of Notification
As soon as they come to, drivers often rush to report accidents to their insurance providers as soon as they’ve stabilized. While 24 hours is often ideal, extenuating circumstances may prevent it. No matter your circumstance, though, it is still wise to notify your insurer as soon as an incident takes place and provide them with all of the information they require in order to start the claim process.
Primarily, filing an accident report serves to meet your policy’s notification requirements; however, there may also be other advantages. When submitted as soon as the details have come to light, the insurance company can use them to make informed fault judgments; gathering details from witnesses who may have forgotten details after several months have passed is much harder.
As part of their process, insurers require accident reports be filed so they can begin paying out damages related to repairs for vehicle damages, short-term rentals and medical costs incurred as a result of the incident. Once they have filed this report on record they can begin processing payments accordingly.
In some states, you or the police must submit an accident report with the Department of Motor Vehicles regardless of whether you file a claim or not. Your insurer may also be obliged to inform them about any collision depending on state laws.
Once your insurance company receives your accident report, time starts ticking on when it will have an effect on your rates. While exact timing depends on state and provider differences, expect premiums to go up for several years following an at-fault accident.
As it stands, you can help reduce the effects of an accident on your premium by shopping around for new policies with insurers that provide competitive rates and low deductibles. Sometimes you might even switch providers for better prices after an incident; to determine this option online with our free comparison tool.
3. The Date of the Claim
After being involved in a car accident, it can be daunting to take care of all the tasks necessary. From making sure everyone involved is safe to dealing with law enforcement to repairing or replacing vehicles involved; there’s much to keep track of after an incident has taken place.
Notify your insurance provider immediately of any accidents or damage, to enable them to open a claims file and assist with next steps. When calling, they’ll ask for information such as the date, time, involved parties’ names, addresses, phone numbers, description of injuries sustained; make, model and year of each vehicle involved as well as photographs from the scene as proof. It is vital to always report accurately; insurance fraud is a serious offense.
If you need help, your insurer should offer a 24-hour claims hotline staffed with trained agents who can guide the filing of a claim. Alternatively, online filing of claims through their website or mobile app may also be an option, or making an appointment at one of their local offices to meet with an agent and file your accident or damage claim in person is also an option.
Reporting an accident to your insurer depends on both state law and policy; regardless, reporting as soon as possible to avoid premium increases, denied claims, and speed up the claims process.
Accidents typically have only short-term repercussions for insurance rates; depending on state regulations and the severity of an incident. However, additional accidents or an incident with multiple traffic violations could extend this effect further.
If you want to reduce the impact of car accidents on your insurance premiums, take a defensive driver course with your provider. These classes can be completed online or in-person and could result in up to a three-year reduction on premiums.
4. The Date of the Final Settlement
The final settlement date depends on several factors. Medical treatment can take time to complete and can greatly affect your settlement amount, while property damage requires insurance companies to repair or replace items like vehicles and other damaged objects. Finally, disputes over damages or injuries must be settled through court; during this process it’s vital that you work closely with an attorney like Muller Brazil so your case progresses as efficiently and quickly as possible.
As satisfying as receiving a settlement check may be, it is important to remember that this payout only accounts for part of what is owed to you – medical bills, lost wages and pain and suffering must also be included when filing your claim.
Another issue that could delay settlement is an insurer’s insistence on gathering additional information from you. An adjuster might request records or reports from doctors, police officers or witnesses; all this can take time and be frustrating when trying to establish the amount due for injuries and damages.
How Long an Accident Will Affect Your Insurance
An at-fault car accident may have an immediate impact on your insurance rates for up to five years depending on its state and severity, but should no longer play a significant role provided that you continue driving safely without further accidents or violations.
Even accidents that aren’t your responsibility can have a significant impact on your car insurance rates; however, this depends on both state laws and severity of accidents. Most companies only consider three to five years’ of driving history when calculating premiums.