In many places, the policy of removing car accidents from public driving records after a certain period, such as 3 years, aims to alleviate long-term impacts on insurance rates and legal standings. However, insurance companies often have their own guidelines that extend beyond public records. They might keep internal records or access a database that logs claim activity. Thus, they can legally ask about any accidents within the timeframe they deem relevant, usually extending up to 5-7 years. This helps them evaluate risk more accurately based on their experience and underwriting criteria.
Insurance companies are tasked with assessing risk accurately, and knowing about past accidents helps them determine potential risk and appropriate premiums. While a specific accident might not show on your public driving record after a few years, insurers can still obtain this information from internal claims records or shared industry databases, depending on the jurisdiction. Therefore, even if the accident is no longer on your driving record, you are typically obligated to disclose this information if asked, as failing to do so could result in denied claims or policy cancellations for providing inaccurate information.
