Insurance Rates are Positively Affected by the Accident Records

It is crucial to have car insurance as the expenses to bear the cost of damage is above expectations. The cost of injury, damage, and any third party liability covered in car insurance. But once you claim an accident, it will stay in your record and might affect your insurance premium. Many factors are considered while deciding premium after an accident.

So, the question is, how long do insurance companies keep records? Usually, car insurance companies keep records of six to 10 years in their database, and it will be available even if you switch the car insurance company. The records are not stored with a particular insurance company but are third party database that holds records. After six years or more, it gets removed and won’t affect your insurance premiums.

How can increased insurance rates save you?

Many ways can help to get saved from increased premium rates after getting in an accident. Some of them are as explained below:

  • The first things are to determines whether you are at fault or not in some ways. If your fault is less than 50%, the premium price does not increase. So, at the time of renewal, the company would check the record, and if you are not 100% at fault, it won’t affect your premium amount.
  • In any case, if you met with accidents, try not to communicate with the other driver or passenger. It would help if you did not admit your fault nor say anything about insurance. It would not get recorded, and thus, there is no reason to get rates high.
  • Many car insurance companies are running a forgiveness program under which the accidents do not get entered in insurance records. If there are chargeable claims it might get recorded else, you can be saved under this forgiveness program.

Where does the claim record get saved?

The insurance company thoroughly investigates a claim. The details that are being collected by the company will be recorded unless the claim is not complete. After settling without any disputer the record will be transferred to a third-party database. It is the same place where all insurance companies store accidents and can be accessed by all insurance companies.

This database would have a name, policy number, claim number, fault details, payout information, and other such information. If you think that non-fault accidents can help you, it’s not true. If you found non-fault accidents for more than three times in three years’ insurance companies can increase rates.

So, an accident is not just limited to injury and can cost you in many ways. It isn’t easy to cope with increased insurance rates, so be careful while driving even if you have car insurance. The rates get increased at the time of renewal of the policy or when you opt for a new insurance company as the company checks out the record. If there is a case of any fraud, the record might stay even more than ten years in the record. So, try out that your accident does not get recorded, and you are saved from increased premiums.

About the author:

Tejas Maheta is the Founder of techiegenie.com and a tech geek. Besides blogging he love reading books, Learning new things, and Hanging out with friends.