If one has undergone a car accident, then it can be a bit stressful. But once they file the claim and work for it, their car will be okay. Therefore, once a person claims car insurance, the one thing which they wonder about is how long car insurance claims stay on their record. Well, the time period depends upon the state one resides in.
Usually, in most states, the driving record stays for at least three to five years. However, it is really not important; filing the insurance claim can result in monthly car insurance payments. Therefore, several factors result in insurance rates and the time period of insurance claims on the records.
How Long Do Car Insurance Claims Stay on Their Record?
The standard time period for insurance claims to stay on the driving record is three to five years. However, the actual time frame depends upon the state one resides in. For example, if they have encountered a car accident and filed a claim, then there are chances that the car insurance price might go up for the next three years after claiming the settlement.
Therefore, some states even increase the time for car insurance claims to stay on the driving record if one faces severe claims. In short, some states allow standard accident claims to stay on the record for three years while the DUI conviction record stays for five years.
Several people are not aware of the fact of one or more claims on the driving record. Many worry about car accidents and claim to stay on the record for only two reasons. The first is the license, and the second is the car insurance rates.
How their Driving History Can Impact Car Insurance Rates?
One might find car insurance rates affordable if one has an appropriate and zero-accident driving history. However, once a person files the car insurance claim on the driving record, there are chances that the insurance rates hike up automatically.
However, the rise in the rates is because insurance companies believe that there is high risk associated with the driver, especially young ones. If one has more claims on the driving record, then one might have more risk, according to the insurance companies.
This is because car insurance companies are more likely to assume the risk of car accidents and charge them extra in terms of security.
The monthly payment goes over, increasing over time. Eventually, when they have no car insurance claims on the driving record, the insurance rates will remain similar. But as it is for three to five years, the insurance rates might change.
What is Car Insurance History?
A car insurance history report is a brief outline determining the driver’s claims and driving history. This report is also called a comprehensive loss underwriting exchange.
Sara Routhier, Director of Outreach at CarInsuranceComparison.com, lists several typical pieces of information that are part of the CLUE report:
- Date of birth
- Policy code
- Date of losses
- Type of losses
- The total amount paid by the insurance companies
- The description of the coverage
- The address of the property
Whenever one applies for an insurance claim for their car, the insurance company might request the CLUE report to determine the driver’s history and past claims. If a driver’s CLUE report has one or more claims, they might have to pay high car insurance. The CLUE report will highlight all the claims they have filed for in the last seven years.
How Much Does the Auto Insurance Cost if One File for a Claim?
Well, there are several factors which determine the rates of car insurance. A car insurance company will look at multiple things when issuing car insurance. However, here is the list of factors contributing to the cost of car insurance.
- Marital status
- Driving record
- Credit score
- Zip code
- Type of vehicle
- History claims
If one is in their 30s and 40s and they have a clean driving history, then there are chances that the insurance rates will be quite low. In contrast, if one has more than one driving record claim, the insurance rates will be a bit high. However, the average insurance rate lies between $1347 to $4700.
How Can Someone Receive Cheaper Insurance Once Filing the Claim?
After one has filed the claim, it might take some time, but there are chances that the car insurance company might increase the insurance rates. However, if the company hasn’t changed their car insurance rates and asked them to renew the coverage, then there is no requirement for them to change the insurance provider until they wish to.
There are chances that, in certain cases, the car insurance rates might be a bit low. But there are many companies who offer their options such as accident forgiveness to policyholders through which one can easily avoid the increasing rate of car insurance.
In contrast, if their insurance company has increased the car insurance rates and isn’t willing to offer vehicle coverage in future, then it is better to opt for insurance rates from different companies.
It is important for one to compare the rates from multiple insurance companies as it can help one get the best coverage at an affordable price that fits their budget.
Car Insurance Claims and Driving Records
Car insurance companies pay a lot of attention to their driving record. Therefore, if one has more than one accident claim on record, one no doubt has to pay more for car insurance. However, if they have no car insurance claims, the insurance rates will remain the same.
For example, the insurance company will take DUI convictions and the CLUE report more seriously, and it will determine the actual cost of the insurance claim. However, it is really important to go through the terms and conditions of car insurance to make sure that they do not deal with any consequences in the future.