What’s a chargeable incident, and does it affect your car insurance?

Every journey starts with protection. Whether you’re driving in town or across the country, car insurance helps keep you, and everyone around you, covered. But did you know your driving history — including accidents and tickets — can impact how much you pay for auto insurance? These factors, known as chargeable incidents, play a big role in calculating your premium.

Let’s break down what chargeable incidents are, how they work, and what you can do to keep your rates in check.

What is a chargeable incident?

A chargeable incident can be an accident or a violation reported to your insurance company. Typically, it means you received a ticket or court summons, or you were found at least 50% at fault for an accident.

There are two main types of chargeable incidents: accidents and violations.

Chargeable accidents are certain covered events in which you're held mostly responsible for bodily injury to someone else or damage to another person's property. Whether it’s a minor fender bender or a more serious crash, being at fault can affect your insurance rate.

Chargeable violations include certain driving infractions, like speeding, driving under the influence, or failing to stop and report an accident that involved you. Other incidents, such as a commercial driving violation or safety violation (think, seatbelt ticket) may not be considered chargeable.

How do accidents affect car insurance rates?

Ever have your insurance premium go up after an accident or ticket? That can happen because insurance rates are based on how likely it is that someone will file a claim. After an accident, your insurance may cost more because statistics show that people who’ve had accidents are more likely to have another one.

While it’s frustrating to experience a rate hike, remember: an accident rating doesn’t last forever. If you maintain a safe driving record, your premium could go back down over time. The length of time an accident can impact your premium varies by state and typically lasts only a few years.

Keep in mind, things like late payment fees, lapses in coverage, and even changes to your car insurance credit score can also trigger a change to your premium. Signing up for AutoPay and keeping your coverage active could potentially help you avoid extra costs.

How to avoid an insurance rate increase

Safe driving is your best defense. By following traffic laws, preventing distracted driving, and staying focused behind the wheel, you can steer clear of tickets and help avoid accidents that often result in a premium increase.

Looking for ways to improve your driving? American Family Insurance offers programs like DriveMyWay, designed to help you make smarter choices on the road.

Want to learn more about auto insurance?

Your American Family Insurance agent is here to help. Connect with your agent to get answers, explore coverage options, and find ways to save.

This article is for informational purposes only and based on information that is widely available. This information does not, and is not intended to, constitute legal or financial advice. You should contact a professional for advice specific to your situation.

This information represents only a brief description of coverages, is not part of your policy, and is not a promise or guarantee of coverage. If there is any conflict between this information and your policy, the provisions of the policy will prevail. Insurance policy terms and conditions may apply. Exclusions may apply to policies, endorsements, or riders. Coverage may vary by state and may be subject to change. Some products are not available in every state. Please read your policy and contact your agent for assistance.