Auto Insurance FAQ: How Long Does an Accident Stay on Your Insurance?

You may be doing your best to avoid a car accident. Still, accidents can happen at any time. Most drivers avoid reporting car accidents due to the fear of the negative effect on insurance rates. Causing an accident indeed has lasting financial effects. For instance, your insurer may raise your premiums. But how long does an accident stay on your record in Ontario?  
“How long does an accident stay on your record Ontario” is among the most common queries to insurance providers. How an accident impacts your driving record depends on various factors. For starters, being involved in an accident where you were not at fault will not impact your premiums. However, if you were at fault for an accident, your rates will significantly increase. 

What factors affect how long an accident stays on your record in Ontario?

• Who was at fault for the accident?

The first thing that comes to a driver’s mind after being involved in an accident is who is at fault. And this is usually followed by the question “how long do accidents stay on your driving record?” One crucial thing that any driver needs to understand is to never admit to being at fault in an accident, regardless of whether it seems obvious or not. It is normal to feel guilty, especially where other people may have been hurt or caused extensive damage. However, you should take details of the accident such as where it occurred, any witness details and what happened and take it up with the police. If you are at fault for an accident and decide not to file a claim and pay for the damages out of pocket, your premiums will not be affected.
In a car accident, one driver will always be found at fault, whether partially or fully. Your insurer will also investigate to determine who is at fault using the Fault Determination Rules. Some insurers allow for one at-fault claim without increasing premiums. However, a good driving record will be considered. 
If found at fault, some insurers may increase the premiums by 6%- 140%, depending on the severity of the accident. This will be evident on your next renewal date. The accident will stay on your record for three years. This means that changing your insurer will not help as the records will be available to them. 

• Your past driving records

Insurers base your premiums on your driving record. This means that any negative change in your driving will impact your premiums. While insurers cannot access your driving records from the point at which you got your driver’s license, they can access the records that go back three years. When pulled, tickets, convictions, claims and the driving courses that you have completed will be accessible. 

Do speeding tickets affect my premiums?

If convicted under the Highway Traffic Act (HTA) for speeding in Ontario, the conviction will remain in your driving records for three years from the conviction date. As such, your insurer can also use this to increase your premium for up to the next three years. More speeding tickets after the initial conviction warrants an even higher rise in your insurance premiums. 

How long do demerit points stay in your driving record? 

In Ontario, demerit points stay in your record for two years after each driving offense. However, they are not used to determine your premiums. Rather, your insurer will use the convictions. This means that even after the demerit points are erased, your insurer will still access the traffic violations such as accidents or speeding tickets for up to three years after conviction. 
The more driving offenses, the higher the demerit points. As such, if you have received a significant number of infractions, your insurer may consider you ineligible. This may force you to seek coverage from carriers that offer insurance for drivers with multiple tickets and accidents. 

How much will my insurance rates go up after a car accident?

Various factors come into play when determining your insurance rate after an accident. There is no straightforward method to calculate an increase in the rates. Rather, your insurer will consider your driving record, age, and even where you live. For instance, if you are an experienced driver with a clean driving record, your insurance rates will be lower than that of a driver with multiple careless driving offences. Also, the severity of an accident will be considered. A major accident that results in property damages and injuries is likely to attract higher premiums than a minor accident. 

How can you reduce your premiums after a surcharge? 

• Sign up for an approved driving course- This can amount to a premium reduction and will also help you mitigate the effects of an accident. 
• Purchase protection endorsements after tickets or an accident- These endorsements are only available for drivers with clean driving records. However, they offer protection if a driver is involved in future at-fault accidents or tickets.
• Be a safe driver- You can recover from an at-fault accident by being a safe driver. This means avoiding all traffic violations and other accidents, especially three years after your conviction. Being charged with another traffic violation or being involved in another accident before the lapse of the three years will only further increase your premium. 
• Ask for discounts- You may have been involved in an at-fault accident. However, this does not mean that you cannot ask for discounts. For instance, if you take up a defensive driving course, ask for a discount. Similarly, bundle your home and auto insurance for better rates or even install safety features to your car. 
• Adjust your coverage- Adjusting your coverage can lower your premiums. While you should not remove necessary coverage, look into your policy and remove coverage that you do not need. However, do not reduce your insurance coverage to the point where it is no longer enough. 

Why do insurers increase rates after an accident?

Insurance is all about mitigating risks. The more risks a driver portrays, the more your insurer will be required to pay. To protect themselves, the insurance provider can only absorb this cost by increasing the premiums. To answer your question: how long does an accident stay on your insurance? An accident stays on your record for three years in Ontario.