How long do car insurance claims stay on your record?

If you’ve been in a car accident, you know how stressful it can be. After you file a claim and work to ensure you and your car are okay, you may wonder how long a claim will stay on your driving record.

Most states allow claims to stay on your driving record for three to five years. While this may not seem important, filing a claim with your insurance company will almost always cause your monthly car insurance payment to increase. To browse affordable auto insurance options near you, just enter your ZIP code into the quote tool above.

How long does a claim stay on your record?

The standard time a claim stays on your driving record is three to five years. Depending on where you live, you may see a bit of a variation within this timeframe. For example, if you’re in a car accident and have to file a claim, you can expect your rates to increase and stay 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 severe. For example, certain states may allow standard accident claims to be expunged from your record after three years while keeping a DUI conviction on your record for five.

If you have one or more claims on your record, you may wonder why it matters. Most people care about accident claims staying on their records for two reasons: points on their license and car insurance rates. To read more about getting car insurance after a DUI, click here.

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How does your driving history impact your car insurance rates?

You probably enjoy affordable car insurance rates if you have a clean driving history, meaning there are no accidents, tickets, or claims on your driving record.

Once you have a claim on your record, you may find that your rates automatically go up. This increase is because insurance companies are all about assessing risk.

With one or more accident claims on your record, you appear to be more of a risk to most insurance companies. Because companies assume you are more likely to file a claim and cause a payout, insurance companies will charge you more in terms of a monthly premium to make up the difference.

Eventually, when you no longer have a claim on your record, you may enjoy similar rates as before. But for three or so years, your claim will likely impact your car insurance rates. 

What is a car insurance history report?

A car insurance history report, also known as a Comprehensive Loss Underwriting Exchange (CLUE) report, is a report outlining a driver’s claims information and history.

A CLUE report contains the following information:

• Name 
• Date of birth
• Policy number
• Date of loss(es)
• Type of loss(es)
• Amount paid by the insurance company
• Description of the covered property
• Property address

When applying for insurance coverage on your vehicle, the company may request a CLUE report to view your claims history before issuing you an insurance quote. If your CLUE report shows several claims, you will likely have higher-than-average auto insurance rates.

CLUE reports show claims you’ve filed for the past seven years, so even if a claim shows up on your CLUE report and increases your insurance rates, this increase will only be temporary. 

How much is auto insurance if you file a claim?

The amount you will pay for car insurance depends on many factors. Companies consider several different things when issuing auto insurance rates. Some of the most common factors companies consider include:

• Age
• Gender
• Marital status
• Driving history
• Credit score
• ZIP code
• Vehicle type
• Claims history

If you are in your 30s or 40s and have a clean driving record, you may have lower rates than your state’s average. In contrast, 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 auto 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 impact your auto insurance rates. And what’s worse, your rates could stay elevated for several years.

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How can I get cheap car insurance after filing a claim?

Once you file a claim, it could take a while for your insurance company to increase your rates. However, if your company has not increased your rates or told you it would renew your coverage, there is no need for you to change your auto insurance provider unless you wish to do so.

In some cases, you may find that you have the lowest auto insurance rates by staying 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 your company has increased your insurance rates, or if your insurance company refuses to cover your vehicle in the future, you will want to shop around to compare auto insurance rates from multiple companies.

As you compare rates from several providers, you will see which companies offer the coverage you want at a rate that works with your budget. If you need cheaper rates than what you find, you can consider lowering your coverage or increasing 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 making any commitments concerning insurance coverage.

Case Studies: Duration of Car Insurance Claims on Record

Case Study 1: Minor Collision Claim

John was involved in a minor collision and filed a claim with his insurance company. The claim was processed, and his insurance covered the repair costs. His insurance company keeps the claim on his record for a period of three years. After the three-year mark, the claim is no longer visible to insurance companies when assessing his risk profile.

Case Study 2: Comprehensive Damage Claim

Sarah’s car was damaged due to a hailstorm, and she filed a comprehensive damage claim with her insurance provider. The claim was approved, and the insurance company covered the costs of repairing the damage. In this case, the claim stays on Sarah’s record for a period of five years. After five years, the claim is no longer considered in her insurance assessment.

Case Study 3: At-Fault Accident Claim

Mike was involved in an at-fault accident, and his insurance company had to pay for the damages to the other party’s vehicle. This type of claim has a significant impact on Mike’s insurance record. The at-fault accident claim remains on his record for a longer period of time, typically seven years.

During this period, insurance companies will consider the accident when assessing Mike’s risk profile and determining his premium.

Case Study 4: Comprehensive Theft Claim

Samantha’s car was stolen, and she filed a comprehensive theft claim with her insurance company. The claim was processed, and Samantha was reimbursed for the value of her vehicle. The comprehensive theft claim remains on Samantha’s record for a period of three years. After three years, insurance companies will no longer consider the theft claim when evaluating her risk profile.

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, you may find that your auto insurance rates will increase for several years. In some cases, certain claims will matter more than others. For example, an insurance company will take a DUI conviction more seriously than a fender bender.

You can expect your insurance rates to increase if you’ve recently had a claim added to your driving record. The rate increase could take a while, as some companies do not immediately increase rates. But you may find that your insurance rates go up 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 search for less expensive insurance, check out an array of companies to see what they have to offer at a price you can afford. 

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