Accidents Affect InsuranceMotorists take the chance of being involved in a traffic collision every time they get behind the wheel of an automobile, and unfortunately this can have effects on the premiums that are paid by consumers for vehicle coverage. Automobile accidents can impact drivers differently and there are many factors that can cause the price of policies to change due to auto collisions. Car insurance companies base rates on the risk of taking a loss and carriers must charge a rate that will reflect such risks.Generally, a company will charge higher rates to motorists that have had multiple claims and at-fault-accidents on their record, whereas a driver that has never been involved in a collision or filed a claim will often pay less for coverage; this is simply because the driver with a history of claims is viewed as having a higher likelihood of suffering a loss. However, collisions do not always have a negative impact an a driver's premium. Consumers are often under the impression that if they are in a traffic accident their rates will automatically go through the roof, which is not necessarily true.There are many factors that can surround a traffic collision that may determine whether a driver's premium will be affected or not. In many cases, if a motorist is hit by another vehicle by no fault of their own, their rate will not be increased; however, having more than one such claim will often cause a rate increase. The matter of how long accidents affect insurance rates is dependent on the company. In general, collisions that have occurred in the past three years are taken into account by carriers. If a policyholder causes an accident while under the influence of drugs and/or alcohol then the premium that will be charged coverage will probably increase, up to 60% in some cases, and the insurer may even cancel the policy.