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HomeCar Insurance ResourcesHow Long Does an Car Insurance Claim Stay on Your Record?

Insurance companies use many different resources to gather information about their clients. They use the information to determine how much they are going to charge. It is the premiums for the insurance packages that they sell. Some of the data is on the driver’s record. Other information can be a result of a claim made to the insurance company.

Different Types of Claims

There are different types of claims that are in with an insurance company. These can be in the collision category. Or they can be in the comprehensive group. Any of these claims could affect the premiums. Not only for the time of renewal but several years going forward. How much and for how long is going to depend on the claim.

Individuals that have had an accident are going to find that it remains on their driving record for six years. But this doesn’t mean that the insurance company is going to hold this against the insured. It will depend on a lot of circumstances. If there has been a claim placed for the insurance there is a chance of the premiums are going to go up. This claim will stay at the forefront for three years. It is taken into consideration for each of the insurance renewals for these three years. But in most cases, if no further claims are submitted the premiums will reduce each year. Provided there is no other negative information that would affect the premiums.

Should You File a Claim?

Many individuals realize there is going to be an effect on their premiums. Upon the registering of a claim.  But it may not take effect until renewal.  It often raises the question of whether they should file a claim. Again it will depend on the nature of the claim. If the claim is about an accident most likely a claim is filed. Especially if there are other drivers involved. Some drivers believe that they are not at fault. Based on this they think that there is no need to file a claim. Especially if no one is at fault for the accident. Insurance companies always equate fault when it comes to collisions. They have specific criteria that they follow for determining this.

The Benefits of Accident Forgiveness

An extra benefit offered by some insurance companies is accident forgiveness. To qualify for this drivers have to meet certain criteria. In most cases, they will need to have a clean driving record. There should be no history of past claims that could affect this.

What it means is that if an accident occurs the first time it is not held against the driver. Meaning that their insurance rates will not go up. That doesn’t mean that the accident won’t remain in history. But it does mean that the insurance company should not be using it. In regards to making their decisions about the insurance.

Reducing the Claims Impact

Drivers worry when a claim has affected the premiums. The driver wants to make every effort to minimize the impact it has on their insurance. The claim will remain there for three years. The driver has to be extra cautious in making sure that no further claims are made. Several ways for being able to do this is to make sure that one follows all the road regulations. The claim is only one segment that is going to affect the premiums. Usually, the premiums will increase upon renewal.

The insurance company does reviews. They may see other negative factors that could affect the premium. It is going to raise the premiums even more. It also may show a pattern of neglect or irresponsibility to the insurance company. Whereas a clean driving record including not having any tickets will be beneficial.

How Can I Lower My Car Insurance Payments While the Claim is Still Recorded?

Drivers should look at what other discounts are available to them. It is important so one can realize some savings.

Although a claim is made, the insured may have been with the company for a  long time. In this case, there may be a loyalty discount that can be taken advantage of. Another simple discount may be the use of snow tires. Some insurance companies offer a discount for this. By taking advantage of the discounts, it can help offset the increase as a result of the claim.

Shopping for the Right Insurance

Many individuals don’t realize that insurance companies do differ. While they all have the same regulations to follow, they do have variations and what they have to offer. They also have different approaches to what they consider important. They use these when setting their premiums. Some may be more liberal than others.

An insurance shopper needs to understand what insurance shopping is about. It can help in the future.

All too often the priority is on the lowest premiums. There are other factors that need considered. One can only determine this by asking the right questions.

Shopping for insurance all begins with getting some good quotes to use for comparisons. This information is a great starting point. Most people will get a feel for how the insurance company is when it comes to customer service. They can ask as many questions as they like. The right questions are essential. Getting an insurance companies viewpoint on their claims can be helpful. One will be able to discern how strict the insurance company may be when it comes to its claims. Insurance company makes their money from the premiums.  It is important to take this into account. If they are going to be at high risk for payout, then this is going to cut into their profit. But, there are some insurance companies that are fairer than others. When one takes the time to shop properly, they can often find the insurance company that appeals to them the most.

About the Author: Valerie D. Hahn

Valerie is an insurance editor, journalist, and business professional at RateLab. She has more than 15 years of experience in personal financial products. She strives to educate readers and ensure that they are properly protected.

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