The truth, however, is that even when your claim is settled, the car accident will be with you for a long time. All you, as the driver, probably want to do is forget that the car insurance accident ever happened, but your insurance company, on the other hand, won't forget it. The Impact on a Premium The biggest area where you will feel the impact of an auto insurance accident is in the premium you pay for your auto insurance policy. When you get into an accident, your insurance company will rate it based on the severity of the accident. This will largely be determined by the cost the insurance company will have to pay to recover or compensate you. When you have a minor or serious accident, your premium will increase based on the points you have against you on your driving record. The timing depends on the state. The length of time an auto insurance accident can remain on your policy and impact your premium in a negative way depends largely on the state in which you live. Your motor vehicle record is linked to you at the state level, meaning your record if you drive in Massachusetts, for example, is with that