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The effect a car accident has on insurance rates

On Behalf of | May 8, 2023 | Car accidents

Car accidents can physically, emotionally and financially impact Texas victims. A car accident can still have lasting consequences even if someone walks away with little or no injury. In addition to fixing a vehicle and handling medical payments, some car accidents can stay on a person’s insurance record for years after the accident.

Length of time accidents stay on records

Texas, like many other states, has a driving record database. Each licensed driver has a motor vehicle report that includes traffic violations, speeding tickets and accidents. When there is an accident, a law enforcement official completes and submits a crash report to the Texas Department of Transportation within the first ten days of the crash.

Thankfully, a car accident does not stay on a person’s record forever. Most accidents will remain on their record for between three to five years. It’s possible for an accident that happened seven or eight years ago to be on record with your insurance company. However, most insurers do not consider these when determining your insurance rate.

How accidents impact insurance rates

The amount automobile accidents increase your insurance rate will vary based on your insurance provider. Other factors like who was at fault for the accident, the severity of the accident and a person’s driving record will also come into play.

Elderly drivers and teenage drivers often have higher insurance rates. After an accident, these groups could see higher increases than other drivers. This is because insurance carriers view them as risky drivers. Some insurance carriers offer accident forgiveness. This paid service helps drivers avoid rate increases after accidents when their claims are under a set point. While getting into a car accident and the subsequent insurance rate hikes can be frustrating, it is good to know that accidents do not stay on a person’s insurance permanently.