What often happens to the discounts built up over years of safe driving after a vehicle collision?

After a vehicle collision, the discounts accumulated over years of safe driving, often referred to as safe driving discounts or good driver discounts, typically diminish significantly. This reduction happens because a collision suggests a departure from the previous safe driving record, which in turn raises the perceived risk from the insurance company's perspective. Many insurers have policies that state that an accident can negatively affect your premium rates, essentially erasing the benefits gained through years of safe driving. Therefore, the discounts that once lowered your insurance costs can often become insignificant or even wiped out completely following an accident. This situation can lead to higher premiums when you renew your policy or when it comes time to evaluate your driving record again.