How long does an accident affect your insurance
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Submitting a claim when there is a car accident can sometimes raise the rate for an insurance policy. An insurer usually does not raise rates after the first claim, but they do raise rates if there are two or more costly claims within the policy period. Submitting many small claims can also cause an insurer to raise an auto insurance rate.
An accident can be seen from the insurer's point of view as either an at-fault accident or a not-at-fault accident. Insurers assess eligibility points for an at-fault accident; this leads to a higher premium because of increased risk to the insurer. A not-at-fault accident usually does not count toward eligibility, but having too many can trigger a policy review.
An insurer will increase the insurance rate for someone who has had costly claims made against his insurance
policy. An insurer needs to recoup some of the expense of paying out a claim, and they do that by raising the rates for people who have submitted a certain amount in claims.
Submitting a claim to an insurance carrier may disqualify an individual from receiving a specific type of discount. Some insurers offer a discount for being accident-free for a certain number of years. When a claim is filed that discount percentage can decrease or be eliminated, resulting in a higher premium.
If the number of claims reaches a certain threshold set by the car insurance company, the auto insurance policy can be canceled. People who get canceled are no longer seen as an insurable risk for an insurance carrier. When someone gets canceled by an insurance carrier she is going to have a hard time finding insurance without paying a significantly higher premium.Source: ehow.com