When it comes to auto insurance, your driving history plays a significant role in determining your rates. Insurance companies use a variety of factors in their rating algorithms, including your motor vehicle driving record and your claims history. If you’ve received traffic tickets or have been involved in an accident, you might wonder how long these incidents will stay on your insurance record and affect your rates. In this article, we’ll explore some typical timeframes and how they may impact your insurance. All insurance is state specific and individual insurance carriers have their own models. For this article, we’ll take a general approach for the sake of simplicity.
Tickets and violations
Most insurance companies will use an approximately three-year period when assessing a rate for auto insurance for minor convictions such as speeding or failure to yield. *(Speed convictions between 0-6 mph over in certain speed zones and up to 0-10 mph over in other zones are not used in the rating models for certain carriers but will still display on the driving history of your policy).
Major convictions such as driving under the influence, open container, or any felony involving the use of a vehicle may appear on your driving history and impact your rates for up to five years.
At fault accidents
Most insurance carriers will deem an accident to be an “At Fault” accident if there was any payment made under the liability or collision portions of the policy. If your claim was paid under the collision portion and then subrogated, then it would not be considered At Fault.
The period used to assess rates for At Fault accidents is generally three years for most insurance companies. The amount paid on a claim is also important since amounts under $1,000 may not impact your insurance rates.
Not at fault accidents
Not at fault accidents will typically not impact your rate. Examples of not at fault accidents include a vehicle damaged while lawfully parked, collision with an animal, vehicle struck by a “hit and run” driver or vehicle was rear-ended while stopped at a traffic light.
Bottom-line basics
Keeping a clean driving history is usually the number one thing most customers can do to keep their auto insurance rates as low as possible. Most insurance companies have discounts for being violation or accident free. Other policy programs such as accident and violation forgiveness are also important tools that we use to help mitigate potential rate impacts for the occasional mishap.
Working with families to help them navigate the complex world of auto insurance is what we do every day. Connect with us for an insurance portfolio review and evaluation.
At Flury-Hinderks Insurance, customer education is very important to us, and we are happy to take the time to review coverage and provide counsel for our customers. If you do not have a great relationship with your current insurance agency. Connect with us for an insurance portfolio review today.
