Shopping for car insurance is never an easy task. With so many companies out there that offer different policies, it can be hard to decide which one is the best fit for you. But one thing that you might not have considered is how far back the insurance company looks when determining your rates. There are some companies that only go back three years when looking at your driving history, and this can affect your premiums significantly. In this blog post, we will look at what car insurance companies only go back three years and how this affects your policy. We’ll also discuss tips and tricks on how to get the most out of your coverage while still getting the best deal possible.
What are the Types of Car Insurance?
There are many types of car insurance, and each type has its own benefits and drawbacks. The most common types of car insurance are:
-Liability insurance: This is the most basic type of car insurance, and covers any damage or injury that you may cause to another person or their property while driving. It does not cover any damage to your own vehicle.
-Collision insurance: This type of insurance covers damage to your own vehicle in the event of an accident, regardless of who is at fault.
-Comprehensive insurance: This is the most comprehensive type of car insurance, and covers any damage or injury to your vehicle caused by anything other than a collision, such as fire, theft, or vandalism.
-Personal injury protection (PIP): This type of insurance covers medical expenses and lost wages for you and your passengers in the event of an accident, regardless of who is at fault.
-Uninsured/underinsured motorist coverage: This type of insurance protects you from being sued by or having to pay damages to another driver who does not have sufficient insurance to cover the costs of an accident they cause.
Does my Policy Cover Me if I Get in an Accident?
If you’ve been in an accident, your car insurance company will typically only go back three to five years to cover any damages. This is regardless of whether you were at fault or not. So, if you’re worried about being covered in the event of an accident, it’s important to make sure you have enough coverage.
How Much Coverage Should I Get?
The amount of coverage you need depends on a few factors. Your state may have minimum requirements, but that doesn’t mean you shouldn’t get more if you can afford it. The number of drivers in your household, the type of cars you own, your driving record, and the amount of money you’re comfortable spending out-of-pocket if you’re in an accident all play a role in deciding how much car insurance coverage to get.
Some people recommend carrying the same amount of coverage as your home insurance policy. So, if you have $300,000 in liability coverage for your home, then that’s how much car insurance coverage you should get. Others say to get at least $100,000 per person and $300,000 per accident.
If you’re not sure how much coverage to get, ask your agent or broker. They can help determine what coverages and limits make sense for you based on your individual needs and circumstances.
What is the Difference Between Full Coverage and Liability Only?
The most important distinction between full coverage and liability only is that full coverage includes protection for your own vehicle, while liability only protects other people and property.
Liability only car insurance covers damages that you cause to other people or property in an accident. It does not cover any damage to your own vehicle. Full coverage car insurance, on the other hand, includes both liability and collision coverage. Collision coverage pays for damage to your own vehicle in an accident, regardless of who is at fault.
There are a few different reasons why you might choose one type of coverage over the other. If you have an older car that isn’t worth very much, it may not make sense to pay for collision coverage since the payout would likely be less than your deductible. On the other hand, if you have a newer or more expensive car, full coverage is probably a good idea.
Another factor to consider is your driving record. If you have a lot of accidents or moving violations on your record, you may be required by your state to carry full coverage. Even if you’re not required to carry it, your car insurance rates will probably be higher if you choose liability only.
How Long Does a Car Insurance Claim Stay on My Record?
If you’re involved in a car accident, your insurance company will likely ask for your claims history. How long a car insurance claim stays on your record varies by state and insurer, but generally, it will impact your rates for at least three years.
In some states, insurers can only use claims that have been filed within the past five years to determine rates. In others, they may look back as far as 10 years. And while most companies have a three-year limit on how much weight they give to any one factor in setting rates, some carriers will continue to raise rates for customers with recent accidents even after three years have passed.
The length of time a car insurance claim stays on your record also depends on the type of claim. A minor fender bender is not going to have the same impact as a major collision. In general, though, you can expect any car insurance claim to stay on your record for at least three years.
How Can I Get Cheaper Car Insurance?
When it comes to car insurance, cheaper is often better. However, finding the cheapest car insurance can be a challenge. Here are a few tips to help you get cheaper car insurance:
-Shop around. Get quotes from multiple insurers and compare rates.
-Choose a higher deductible. This will lower your monthly premium but increase your out-of-pocket costs if you have an accident.
-Bundle your policies. Many insurers offer discounts for bundling multiple policies, such as auto and home insurance.
-Ask about discounts. Inquire about any discounts that may be available, such as for good drivers or students.
Car insurance companies that only go back three years are an important part of finding the right car insurance for your needs. Not all companies will look at your recent driving record, so it’s important to do some research and find out which ones do. It can be difficult to find a reliable car insurance policy when you have a limited record, but understanding what companies look at and how they make their decisions can help you make an informed decision. Finding the right coverage is essential in protecting yourself and making sure that you are covered if anything unexpected happens on the road.