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How long do car insurance companies keep claim records?

Intro

Most people know that comparing car insurance companies can help them save quite a bit of money on their automobile insurance policy. Time to take that one step further. When major life situations or changes happen, you will also want to explore different companies to find the best rates on car insurance for you in your new situation. Whether you are filing a claim, getting married, adding a child to your car insurance policy, or a plethora of other life events, paying attention to your automobile insurance rates is a smart plan. It is also good to know how long car insurance companies keep claims records. This can affect your car insurance rates, and help you determine how long your rates might be affected.

What types of claims will affect your rates in the future?

To start, you should know that not all claims are ones that should be filed with your auto insurance provider. If the amount of damage is lower than your deductible, you may want to pay for the damage out-of-pocket. Some people look at the cost of an accident out of pocket versus the additional premiums they would pay, to determine which would be less before making a decision about filing a claim or paying out-of-pocket. Knowing how much time car insurance companies keep claims records can help you decide.

How long do chargeable claims impact your car insurance rates?

There are databases that help keep track of insurance claims, and most insurance companies utilize at least one of these databases. One of the databases that companies use is called the Comprehensive Loss Underwriting Exchange, or CLUE. CLUE is a database where the claims departments for insurance companies automatically enter class details after a claim is completed. Once entered into the database, the information will stay there for seven years. Not all databases keep the information the same amount of time, but this is a good benchmark.

Of course, other variables can come into play where information might be kept around longer than the standard period. This can include times were company suspects fraud or wants to watch for it. If this is the case, the car insurance claims records are kept longer. Auto insurance providers play it safe when it comes to potential fraud because fraudulent insurance claims cost them a lot of money.

Regardless of the database or the company, eventually a chargeable claim will drop off your record. Additionally, you should know that your premium will not always go up after an accident, nor will every claim result in an increase in premiums. Depending on the state you are in, the amount of fault in an accident may be determined as a percentage using a formula that has multiple variables. Due to each state using a different formula to determine who is at fault, you will need to look into how car insurance operates in your state to determine whether your insurance rates are likely to go up in your specific situation. You can also call your car insurance provider to ask questions and get more information. Keep in mind that sometimes rate changes do not begin until your policy renews. Either way, your biggest ways to save money on automobile insurance plans is shopping around and maintaining a good driving record. If you are found at fault in an accident, you'll want to start right away making sure that you are driving safely so that your rates will start to drop sooner if they do go up.

Can non-fault claims be used to determine your rates?

In most states, you must be considered at fault in an accident in order for your rates to go up due to an accident, though some states and areas do use a sliding scale regarding fault. Just because you are involved in an accident does not mean that your car insurance premiums will go up. There are many ways that states use to determine fault, so make sure that if you are in an accident, you do not admit fault to anyone, let the police determine fault. You may also want to take pictures of the crash scene that show that you are not at fault. Protecting yourself is important and can help limit the risk of rate increases.

How are auto insurance claims reported to other carriers?

Car insurance companies utilize databases to keep up with insurance claims that are reported to other carriers. Keep in mind that if you are in an accident and try to switch car insurance companies to save money, while misleading them or withholding information about your accident, it can have repercussions. It also means that the auto insurance company might be able to deny your claim.

How long will these claims records be found on your personal claims report?

You will want to take a look at your current insurance providers policies in order to determine how long these claims records will be found on your personal claims report.

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