 TITLE: How Long Does an Accident Stay on Your Insurance? CONTENT: What Happens to Your Insurance Rates After an Accident?\n-------------------------------------------------------\nSince your driving record influences your car insurance premiums, an accident could bump up your insurance costs. However, it doesn't mean that your rates will definitely skyrocket if you're involved in an accident. In some cases, they may not change at all if you weren't at fault or if it's your first accident. You're likely to see a rate hike if you've been involved in other accidents over the past few years. And, again, the same goes for moving violations.\nInsurers look at the big picture when determining your risk profile and, in turn, your rates. In this way, accidents and citations can stack on top of each other to increase your premium. Your rates could also go up after an accident if the other driver doesn't have enough insurance to cover the damage. In this situation, you might have to utilize your own uninsured\/underinsured motorist coverage, which could trigger a rate increase.\nIt's also helpful to think in terms of individual claims. A minor fender bender will likely result in a smaller claim when compared to a collision that causes serious damage or injuries. Let's say you get into an accident that's primarily your fault. If you file a claim with your insurance company that exceeds a specific amount, your premium will spike by a correlating percentage, according to the Insurance Information Institute. The correlation varies from insurer to insurer, and you can expect that rate hike to be there as long as your insurer considers the accident as a factor in your rate.\nIn some cases, an accident could result in your car being totaled, which is when the overall cost of repairs outweighs the value of the car. At that point, your insurer may provide a payout equivalent to your car's actual cash value. The value of a vehicle is typically determined by the vehicle's make and model, age, mileage and condition, among other factors, at the time of the accident. It's essentially a rough estimate of how much the car could have reasonably sold for had it not been totaled. END