How Long Does a Car Accident Stay on Your Driving Record?

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Article Contents
Picture of By <span>Aren Mirzaian</span>
By Aren Mirzaian

Updated on October 7, 2024

Visit author page
Picture of By <span>Aren Mirzaian</span>
By Aren Mirzaian

Updated October 7, 2024

Visit author page

3 minute read

Article Contents

Car accidents can be a significant source of stress and financial burden, even when no one is injured. The aftermath often involves dealing with repairs, insurance claims, and, unfortunately, increased premiums if you are found at fault. Read on to find out how long a car accident stays on your driving record and how it can affect your insurance rates.

Car Accidents on Your Driving Record at a Glance

  • Car accidents will stay on your driving record for five years.
  • Depending on your insurance company’s policies, they will consider incidents on your driving record from the past three to five years when determining your insurance rates.
  • You can lose your “good driver” discount even if you’re not found at fault for an accident.

Understanding Fault: No-Fault vs. At-Fault Accidents in Canada

In Canada, most provinces operate under a no-fault insurance system, which means that your insurance company will cover your damages regardless of who is at fault. Unfortunately, this doesn’t mean that fault is irrelevant. If you are found to be at fault in an accident, your insurance premiums may still increase, and you may face other consequences such as demerit points on your driver’s license.

If you’re not found to be at fault, many insurance companies won’t consider that as a strike against you when calculating your insurance rate. However, they will still consider your history of filed claims as a factor, so even an accident where you’re not at fault may indirectly lead to an increase in auto insurance premiums.

How Being at Fault Affects You

When you are at fault in an accident in Canada, the repercussions can vary depending on your province and insurance provider. Each insurance company has a different set of criteria that they use to calculate your insurance rate, so there’s no surefire way to tell how your premiums will be affected.

Being found at fault for an accident can drastically increase your insurance rates. On average, drivers can expect their rates to rise by about 10% if they are not at fault and up to 50% if they are deemed responsible for the crash. This can translate into an additional cost of approximately $1,000 per year after one at-fault accident.

Most insurance companies use a points system to evaluate driving records, and points accrued from accidents can remain on your record for three to five years. Since there’s no way to tell exactly how your insurance company will calculate your rate, you should always assume that they’ll consider accidents on your driving record from the past five years.

Unfortunately, there’s no way to wipe your driving record clean of an accident other than waiting the requisite three to five years. Thankfully, there are some options you can take to minimize the increase in your insurance rate.

What If You’re Not At Fault in Ontario?

If you’re involved in an accident that isn’t your fault in Ontario, it typically shouldn’t affect your insurance premium directly. However, that doesn’t mean that your insurance premiums won’t be affected. Most insurance companies usually offer a “good driver” discount to a driver who doesn’t have any accidents or claims on record. Filing a claim after a not-at-fault accident will eliminate this discount and can cause your insurance premiums to rise by 10-15%.

Also, if you frequently file claims – even for accidents where you’re not at fault – your insurer might view you as a higher risk and raise your rates accordingly. The type and severity of accidents you’re involved in can also play a role. Insurers may scrutinize more severe accidents more closely than minor ones when evaluating your risk factors.

What Can You Do to Lower Insurance Rates After an Accident?

When you’re involved in an accident, especially one where you’re at fault, you might be disheartened by the sudden rise in your insurance rates. However, there are some steps you can take to mitigate the financial impact:

Check for Accident Forgiveness Programs

Some insurance companies offer accident forgiveness programs that prevent your first at-fault accident from affecting your premium. However, these programs often come with conditions; for example, they may only apply if you’ve been accident-free for a certain number of years or if you haven’t had recent traffic violations. Take note that not all insurers will have this option available.

Increase Your Deductible:

Raising your deductible can lower your premium costs. This strategy may help offset the increase in rates after an accident but make sure that you have enough savings to cover the deductible if another incident occurs.

Shop Around for Better Rates:

If your current insurer raises your rates significantly, consider shopping around for new policies. Many companies offer competitive rates that could save you money. Bundling multiple policies (like home and auto) with one provider can result in significant discounts.

Key Advice from MyChoice

  • At-fault accidents lead to higher premiums. Conversely, non-at-fault incidents usually do not directly affect rates.
  • Exploring options like raising deductibles or utilizing multi-policy discounts can help manage costs after an accident.
  • Consider your options after an accident, like increasing your deductible, searching for a better deal with other insurance companies, or asking whether your current insurer has an accident forgiveness program.

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