A single car accident can significantly increase your auto insurance premiums, so imagine the impact of being involved in multiple crashes. Such a driving history will almost certainly steer you away from standard auto insurers like dirt cheap car insurance. In August, two popular radio hosts in Los Angeles invited listeners to share their worst car accident stories, revealing some shocking experiences.
One listener admitted to having been involved in seven accidents, while others reported anywhere from nine crashes over seven years to a staggering 12 accidents within five years. One caller even confessed to no longer reporting accidents to their insurance provider to avoid premium hikes.
“The cost of car insurance rises with each accident,” explains David Miller, CEO of Brightway Insurance in Florida. “Assuming the callers were truthful and not just seeking airtime, this number of accidents could result in a license suspension — potentially permanent,” he warns.
If these drivers manage to keep their licenses—which may not happen if the accidents occurred within short intervals—they face a tough insurance market. “Insurers willing to cover drivers with multiple accidents become scarce,” Miller notes. “Ultimately, these drivers will find very limited coverage options, often with minimal protection and prohibitively high premiums.”
The Past Haunts You
Your auto insurance rates largely depend on your driving record from the past three years, says Miller. “While some insurers may consider up to five years, the number of violations, accidents, and claims filed within the last three years most heavily influence your premium,” he explains.
For example, in Florida, accumulating 12 points on your driving record within 12 months can lead to license suspension. Since a typical accident results in three to four points, drivers essentially have a limit of three to four accidents in that timeframe before risking license suspension.
Applying this to the radio callers, if they lived in Florida and their accidents occurred within three years, license suspension would be a likely consequence.
Penalties vary by state. In California, for instance, your license can be suspended for one year after three traffic violations within a single year.
Miller adds, “Some insurers will only cover drivers with one or two claims in the last few years. Others may promise not to cancel your policy, but their premiums could skyrocket. For example, a policy that normally costs $500 might increase to $10,000.”
‘Non-standard’ and ‘Assigned Risk’ Auto Insurance
Insurance companies that specialize in covering high-risk drivers—such as those with multiple accidents—are known as “non-standard” insurers, Miller explains. Rates from non-standard providers can range from twice to ten times higher than standard policies.
For instance, companies like GEICO, Allstate, and Progressive offer non-standard policies in states like Connecticut. These policies are generally less expensive than “assigned risk” plans, which are state-mandated insurance pools for drivers who cannot obtain coverage elsewhere. According to Tim Dodge, spokesperson for the Independent Insurance Agents & Brokers of New York, assigned risk policies represent the priciest form of auto insurance.
Drivers with extensive accident histories, like those from the radio show, are unlikely to qualify for standard or non-standard coverage and often must resort to assigned risk pools.
The Cost of Not Reporting an Accident
If you’re prone to accidents and fear losing your license, the temptation to pay for damages out-of-pocket and avoid reporting to your insurer might arise.
“Don’t do it,” Dodge warns. “Failing to report an accident that your insurance would cover can permanently jeopardize your coverage rights.”
For example, suppose you cover damages to another driver’s vehicle yourself but don’t notify your insurer. Months later, the other driver might claim injuries from the accident and seek compensation. Reporting the accident promptly—usually within 10 days—allows your insurer to protect you legally and possibly deny unwarranted claims.
For comprehensive guidance on auto insurance policies and claims, visit our detailed resources at Why a Professionally Detailed Car Sells Faster and explore our expert articles in the Technology category.
Navigating insurance after multiple accidents can be overwhelming, but understanding how claims affect your rates and coverage options is crucial. Drivers with poor records face challenges securing affordable and adequate insurance, often needing to explore specialized non-standard or state-assigned risk plans. Staying informed about your state’s regulations, promptly reporting all incidents, and maintaining clean driving habits can improve your chances of retaining good coverage and manageable premiums. Additionally, consulting experienced insurance agents can help identify the best options suited to high-risk profiles, ensuring you remain protected on the road despite a challenging history.
