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How a car accident impacts your insurance rates

On Behalf of | Apr 24, 2023 | Personal Injury

If you are deemed liable for an accident while driving in Texas, you may be responsible for reimbursing crash victims for their losses. Typically, your insurance company will pay any covered damages up to your policy limit. However, the presence of an accident on your record may result in higher future insurance rates or issues when you go to shop for coverage.

An accident may follow you for years

The details of a motor vehicle accident may remain on your record for up to five years. Therefore, you may be subject to higher premiums or other penalties for as long as 60 months after a wreck. The severity of the accident will largely determine the exact extent of any actions that are taken against you. In addition, the presence of any other accidents, tickets or irresponsible behavior may be used as a justification to raise your premium or cancel your policy altogether.

Shopping for coverage

If you are kicked off of your policy, the presence of an accident might result in higher prices when shopping for new coverage. However, the further you get from the date of the car crash, the more likely it is that a new provider will show some mercy. This may be especially true if the damage was minor or you haven’t gotten into another accident in the past 12 to 18 months.

You cannot legally drive a vehicle that is not properly insured. Failure to have adequate coverage may result in a fine, a license suspension or other penalties.