Getting car insurance through a new company won’t erase an old accident from your past. You’ll need to disclose the old accident to your new insurance company when you look for new insurance. 

In almost any situation, you must disclose the old accident to your new insurer. But if you neglect to tell the insurance company about the incident, they’ll likely find out. 

This guide explores what you need to tell your insurance company about an old accident. 

Key Highlights
  • Even if you get insurance through a new company, you must disclose past accidents. 
  • Generally, at-fault accidents on your driving record lead to higher insurance premiums.
  • If you don’t tell the new insurance company, they may find out through your DMV driving record.

Do you need to disclose an accident when getting a new insurance policy?

Yes, you must always disclose past accidents when getting a new insurance policy. 

“The insurance industry relies on data and patterns, and a recent accident, especially one where the driver is at fault, tends to move the needle quickly on rates,” says Kevin Kramer, COO at Ignition Dealer Services, a company in the automotive product space. “It’s a tough reality, but it’s rooted in how insurers manage their risk pools and keep the business sustainable for everyone.”

Since past accidents impact rates, not disclosing this pertinent piece of information can come with a cost. 

Does an old accident still count if it was with a different car?

Changing vehicles doesn’t rid you of your accident or claims associated with that accident. 

The best-case scenario is that you will get car insurance quotes that aren’t accurate and will be surprised when the bill arrives. The worst is that the insurance company will decide it doesn’t want to keep you as a customer.

If people could change cars to get free of a surcharge for having an accident, there would be a lot of people trading vehicles right after an accident. Instead, accidents follow you even if you have sold, traded, or totaled the vehicle in the accident.

Why you must disclose past accidents

Even though insurance companies tend to find out about past accidents eventually, disclosing this information upfront is an essential part of the insurance contract. 

Your insurance company will likely raise your rates when they find out. But when they find out, the company might cancel your policy. Failure to disclose past accidents is called a material misrepresentation and can result in policy cancellation, denial of claims and more.

How insurers find out about previous accidents

If your state puts an accident on your driving record, your insurance company will find out about the accident when it pulls your motor vehicle record (MVR). Generally, insurance companies pull these records when determining your final premium amount. 

If the accident isn’t placed on your driving report, claims paid out for damage related to your previous accident will still be on your claims history (C.L.U.E. report). Again, insurers often pull a copy of your Comprehensive Loss Underwriting Exchange (C.L.U.E. report) before finalizing your policy. 

What happens if you lie about an accident when you get a new insurance policy?

If you lie about an accident when getting quotes for a new car insurance policy, you may experience the following:

  • Higher final premium amount: Even if you lie about a past accident, the insurer will likely find out about it. When the insurer does find out, they’ll likely raise your premium. 
  • Cancellation of the policy offer: If the company hasn’t finalized your policy, they might cancel the offer of a policy after finding out about the accident. 
  • Legal repercussions: If the insurance company finds out about the past accident after starting your policy, they may cancel it or prosecute you for insurance fraud. 

Does every accident affect your premium?

At-fault accidents typically lead to higher insurance premiums. After all, the insurer considers an at-fault accident a red flag, and that risk translates into higher insurance rates. 

“An not-at-fault accident doesn’t usually lead to higher rates, but there are exceptions,” says Seann Malloy, founder and managing partner at Malloy Law Offices. “I’ve encountered clients who were surprised to see premiums creep up after they filed a no-fault claim. Most insurers won’t penalize you for a claim if a different driver is at fault — especially if that driver’s insurance will pay for damages.”

How to check your driving record

Insurance companies can access your motor vehicle record (MVR). Within this report, insurance companies can find out relevant driving-related information, including:

  • Any moving or nonmoving violations
  • Crashes that led to a citation
  • Driving restrictions
  • License suspensions
  • Traffic school course completions 

You can get a copy of your driving record through your state’s Department of Motor Vehicles. Depending on the state, obtaining this information may or may not be a fee.  

Tips for shopping smart after an accident

After an accident, savvy shopping can help you find the best option. Top strategies include:

  • Shopping around: Comparing quotes across multiple car insurance companies can help you find the most affordable rates for your unique situation. Some insurers levy higher surcharges for at-fault accidents than others.
  • Evaluate your car insurance needs: Carefully consider what type of car insurance policy you need. While a minimum coverage policy provides sufficient coverage to drive legally, it might not include enough coverage to protect your wallet. 
  • Raise your deductible: Opting for a higher deductible generally leads to a lower insurance premium. If you can swing a higher deductible after an accident, the upfront savings might be worth it. 

Frequently asked questions

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Do I need to report an accident if the claim was under someone else’s policy?

If you were involved in a car accident as a driver, you’ll need to report the accident to your insurance company or a potential insurance company. This holds true even if the claim was made under someone else’s policy.

Will switching vehicles help lower my rate after an accident?

Switching to a new vehicle won’t lower your rates after an accident. But you might enjoy some savings if you drive a car that’s cheaper to insure. For example, switching to an SUV or sedan from a sports car after an accident could come with savings. 

Can I remove an accident from my record?

You cannot remove an accident from your driving record. However, some states allow you to take a driver’s education course, which may offset some of the driver’s license points incurred from an accident. 

Do all insurance companies check C.L.U.E?

Most insurance companies check C.L.U.E. While some might not check this report, that’s the exception, not the rule. 

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author-img Sarah Sharkey Contributing Researcher
Sarah Sharkey is a personal finance writer with a master’s degree in management from the Hough School of Business at the University of Florida. She enjoys helping readers find money solutions that work. She has written for numerous personal finance publications including Money Under 30 and The College Investor.
author-img Laura Longero Executive Editor
Laura Longero is an insurance expert with more than 15 years of experience educating people about personal finance topics and helping consumers navigate the complexities of auto insurance. She writes and edits for QuinStreet’s CarInsurance.com, Insurance.com and Insure.com. Prior to joining QuinStreet, she worked as a reporter and editor at the USA Today Network.