How much will my car insurance go up after an accident?

Will an accident increase my insurance premium?

Since insurance companies calculate premiums based on risk, having an at-fault accident on your driving record may cause insurers to see you as higher risk to insure. If you are deemed higher risk, it is likely that your premiums will increase. 

However, there are several factors that determine how much insurance goes up after an accident. Your auto insurance provider, driving record, claims history, geographic location and in some states, even your age and gender, are looked at when determining the exact rate you pay. Young drivers may see the highest increases after an accident since insurers typically view them as an especially risky group to insure.

Unfortunately, your insurance premium may still be impacted even if you weren’t the cause of the accident. If your insurance company pays to cover your claim, your rates could increase depending on your state and insurance company. The best way to find out how an accident will impact your rates is to ask your insurance representative. 

The Bankrate insurance editorial team analyzed car insurance rates from Quadrant Information Services and found that, on average, drivers with a single at-fault accident pay 43 percent more for full coverage than drivers with clean records. 

How long does an accident stay on your driving record?

How long an accident stays on your official driving record and how long it impacts your insurance may be two different things. In many states, the DMV may maintain a lifelong record of driving incidents, but insurance companies typically don’t use your entire driving record to set rates — only the last three to five years of incidents. How far your insurance company will look back into your driving record to determine your rates depends on your carrier, the state you reside in and the severity of the incident.

Why do insurance rates go up after an accident?

Car insurance rates are calculated based on risk. Statistically speaking, drivers who have been involved in an accident are more likely to be involved in another traffic violation. A rate increase protects insurance companies from losing money. Therefore, your company will adjust your premium to reflect the higher risk taken on to insure you.

While at-fault accidents typically raise premiums higher than no-fault accidents, any car insurance claim can impact your premium. Filing multiple claims within a short period of time can also lead to a higher risk assessment and therefore, higher rates. However, after a few years of being claim-free, it is likely that your auto insurance rates will drop back down.

If your rate has increased substantially after an accident, you may want to explore other options by comparing quotes from other carriers. Since every car insurance company is different, you may be able to find a cheaper rate. Although other carriers will also have access to your driving record, they may not weigh at-fault accidents as heavily as your current provider when calculating rates.

Can I prevent my insurance rates from going up after an accident?

If you are enrolled in an accident forgiveness program prior to your accident, you might be eligible to have the surcharge waived. Accident forgiveness program guidelines are different for every insurance provider and availability varies by state. Most programs allow you to waive the first at-fault accident loss from your policy. However, you can usually only wave one loss within a set timeframe, usually three to five years.

Most accident forgiveness programs are offered as endorsements that can be added onto your car insurance policy at an additional cost. Additionally, a company may have limitations for new drivers or new customers. Some car insurance companies may offer free accident forgiveness coverage after you have been insured with the same auto insurer for a specific amount of time.

The following major auto insurers are among the dozens of carriers that extend some form of accident forgiveness coverage to enrolled and eligible drivers:

• Allstate
• Geico
• Nationwide
• Progressive
• *The Hartford
• *USAA

*The Hartford and USAA only offer accident forgiveness if all drivers listed on the policy are accident-free for five consecutive years. With USAA, you must also have a five-year tenure as a policyholder.

How can I lower my car insurance rates after an accident?

There may still be ways to lower your car insurance rates even without accident forgiveness. Here are a few ways you may be able to bring the cost of your car insurance down.

• Improve your credit: Most states allow car insurance companies to consider your credit-based insurance score when determining rates. If you live in one of these states, taking steps to stay within a personal budget, paying debts and addressing any discrepancies on your credit report to improve your credit standing may help bring down your rate over time.
• Increase your deductible: The higher your deductibles on comprehensive and collision coverage, the lower your premium typically is. However, keep in mind that if you raise your deductible, your out-of-pocket expenses will be higher if you need to file a claim. It’s important to keep your deductibles at a rate you could comfortably pay on short notice.
• Look for discounts: Most car insurance companies offer a variety of discounts, including good student discounts and multi-policy discounts. Many also offer usage-based telematics programs that monitor your driving in real time and award discounts for safe practices behind the wheel.
• Shop around: Comparing quotes from different car insurance companies before your policy renews may help ensure you're getting the best rate for your current circumstances. It may be difficult to find a car insurance policy that offers the same coverage at the same price you were paying prior to an at-fault accident, but other carriers may have discounts that are better suited to your needs.
• Update your coverage choices: If you need to lower your insurance premium, you could consider changing your coverage options. Although you should always review these changes with a licensed agent, reducing coverage you no longer need could help you substantially. Keep in mind that you will still need to maintain your state’s minimum required coverage levels, and if you have a loan or lease, you’re likely required to keep full coverage on your vehicle.

Frequently asked questions

Methodology

Bankrate utilizes Quadrant Information Services to analyze November 2024 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Rates are weighted based on the population density in each geographic region. Quoted rates are based on a single, 40-year-old male and female driver with a clean driving record, good credit and the following full coverage limits:

• $100,000 bodily injury liability per person
• $300,000 bodily injury liability per accident
• $50,000 property damage liability per accident
• $100,000 uninsured motorist bodily injury per person
• $300,000 uninsured motorist bodily injury per accident
• $500 collision deductible
• $500 comprehensive deductible

To determine minimum coverage limits, Bankrate used minimum coverage that meets each state’s requirements. Our base profile drivers own a 2022 Toyota Camry, commute five days a week and drive 12,000 miles annually. 

These are sample rates and should only be used for comparative purposes.

Incidents: Rates were calculated by evaluating our base profile with the following incidents applied: clean record (base) and at-fault accident.