my car insurance rates went up after an accident. Can I save money by switching to a diferent insurance company?

UPDATED: Apr 19, 2015

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UPDATED: Apr 19, 2015Fact Checked

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Asked April 19, 2015

1 Answer

You have the right to change insurance companies whenever you decide to make the change, but it is a misconception that you can continually save money by switching to a new insurance company. You may able to save on your premiums by switching insurance companies immediately after an accident, but the savings will not continue once your accident gets added to your driving history and CLUE report.

Even if you are able to reduce your premiums initially, the fact of your accident will eventually make it into your driving history, and the claim you filed will end up listed on your Comprehensive Loss Underwriters Exchange, or CLUE, report. In the case of your driving history, the accident will remain on file for a period of 3 years, and items in your CLUE report remain for a total of 7 years. As long as the accident is listed on either report, you face the potential for higher rates.

Most insurance companies offer discounts to long-term customers, and changing companies could mean you lose any preferred status you have built up with the previous insurer. Similarly, if you have multiple insurance policies with a single insurer, you are probably receiving a multiple policy rate across all policies by that company, and switch your auto coverage could end up causing you to pay higher premiums for more than one type of coverage.

Before you switch, shop online. Begin on this website and get a free online car insurance quote. Not only will you be presented with the best price available that quote will be compared to other leading insurers represented, so you can see how good the best offer we can give you really is. This will not avoid an increase in premiums based on an accident you were in, but you might be able to find lower initial rates that offset the eventual increase caused by the accident.

Answered April 27, 2015 by Anonymous

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