How Long Does a Traffic Accident Affect My Auto Insurance Premiums?

Say you are driving along one day, and you suddenly receive a text message from a friend, you look down to read the message and— boom! You rear-end the car in front of you, not noticing that traffic had stopped at a red light. Everyone sooner or later is involved in an auto accident, but it is particularly detrimental to the person that is at fault for the auto accident occurring.

At-fault traffic accidents can cause a lot of damage to your driving record and take a dent out of your bank account too. Usually, you will not see the increase in auto insurance premiums until you renew your auto insurance policy for the next term. Auto insurance premiums often increase anywhere from 20 percent to 40 percent following an at fault incident. Discounts may be lost, depending on the auto insurance provider's policy. Expect to keep paying substantially higher auto insurance rates for at least three years, which is the maximum by law in the majority of states.

Steps To Take After an Auto Accident

1. All is not lost. You can do a lot to defray these higher costs on your auto insurance. Shop around to see if you can find comparable auto insurance at another company. Your rates will likely not be as low as they were prior to the accident, but you may find an auto insurance company willing to give you a better deal. Comparing quotes online gives you a good snapshot of auto insurance rates from competing car insurance carriers.
2. Raise your deductible to $1,000 or more. Aggressively raising your deductible to a much higher level can really save you money. If you take on more financial responsibility in the event of an accident occurring, your auto insurance company will lower your auto insurance rate. A word of caution however; do not raise your deductible until you have enough in savings to cover the amount, lest you be surprised with a huge bill if you need to file an auto insurance claim.
3. Practice safe driving. Be vigilant about your driving practices. Don't use any mobile phone devices, whether they are hands-free or not and never text message. Cell phone users are 4 times more likely to be involved in a crash. By driving the speed limit, keeping a safe following distance from cars, and keeping yourself free of distraction, you'll keep tickets and at-fault accidents off of your auto insurance record, and you'll be back to reaping your good driver discount in no time.