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If you have undergone a car accident, then it can be a bit stressful. But once you file the claim and work for it, your 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 you reside 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 Your 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 you reside in. For example, if you 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 you face 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 Your Driving History Can Impact Car Insurance Rates?
You might find car insurance rates affordable if you have 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 you have more claims on the driving record, then you 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 you extra in terms of security.
The monthly payment goes over, increasing over time. Eventually, when you 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:
- Name
- 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 you apply for an insurance claim for your 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 you have filed for in the last seven years.
How Much Does the Auto Insurance Cost if You File for a Claim?
Well, there are several factors that 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.
- Age
- Gender
- Marital status
- Driving record
- Credit score
- Zip code
- Type of vehicle
- History claims
If you are in your 30s and 40s and you have a clean driving history, then there are chances that the insurance rates will be quite low. In contrast, if you have 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 you have 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 your car insurance rates and asked you to renew the coverage, then there is no requirement for you to change the insurance provider until you 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 you options such as accident forgiveness to policyholders through which you can easily avoid the increasing rate of car insurance.
In contrast, if your insurance company has increased the car insurance rates and isn’t willing to offer vehicle coverage in the future, then it is better to opt for insurance rates from different companies.
It is important for you to compare the rates from multiple insurance companies as it can help you get the best coverage at an affordable price that fits your budget.
Car Insurance Claims and Driving Records
Car insurance companies pay a lot of attention to your driving record. Therefore, if you have more than one accident claim on record, you no doubt have to pay more for car insurance. However, if you 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 the car insurance to make sure that you do not deal with any consequences in the future.
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