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

Between filing your claim, getting your vehicle back on the road, and dealing with possible injuries, you may have a lot on your mind following a car accident. You might also wonder how the accident will affect your car insurance premium and how accident forgiveness comes into play (if at all).

Will an accident increase my insurance premium?

Typically, your car insurance rates tend to go up after an accident, especially if you are deemed at fault. This is because insurers may see you as riskier to insure and increase your rates accordingly. The exact amount that your premium will increase after an accident depends on several factors, including your auto insurance provider, your driving record, your claims history, your geographic location, and in some states, even your age and gender. Young drivers may see the highest increases after an accident since insurers tend to view them as an especially risky group to insure.

Even if you are not deemed at fault for an accident, your insurance premium may be impacted. If the insurance company pays to cover your claim, depending on the state and insurance company, your rates could be increased. The best way to know how an accident will impact your rates before filing a claim is to ask your insurance representative. 

The Bankrate insurance editorial team analyzed rate data from Quadrant Information Services and found that, on average, premiums for full coverage insurance go up $840 after an at-fault accident.

How long does an accident stay on your driving record?

The more accidents and traffic tickets attributed to you, the higher your insurance rates are likely to go. In short, this is because insurance companies may see high-risk drivers as more likely to file claims for accidents and other driving incidents. The average full coverage premium increase following an at-fault accident is 42 percent. Drivers who cause accidents where others are seriously injured, extensive property damage is caused or when the driver is intoxicated may see some of the most extreme rate increases. In some cases, your insurer may deny your policy renewal.

Typically, insurance companies will surcharge your insurance rates for accidents and tickets for three to five years following the incident. However, the exact length of time depends on your carrier, your state and the severity of the incident. 

While nearly every auto insurance company will raise your rates after an at-fault accident, the amount may vary noticeably between companies. The table below indicates how much more drivers with an at-fault accident on their record pay for car insurance than drivers with clean driving records.

Why do insurance rates go up after an accident?

Car insurance rates are based on statistics, and the data shows that you’re more likely to be involved in an accident if you’ve already been in one. Although it may feel like one, a rate increase following a claim isn’t a form of punishment. Rather, your company adjusts your premium to reflect this higher risk.

Although at-fault accidents are more likely to raise your premiums than those that are not your fault, any claim might impact your premium, especially if you file multiple claims in short succession. The good news is that your rate may drop back down after a few claim-free years.

If your rate becomes unmanageable after an accident, it may help to explore your options by comparing quotes from other carriers. 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. After comparing quotes, you may find that another company's rates are competitive enough to warrant a carrier switch.

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

If you were enrolled in an accident forgiveness program prior to your accident, you might be eligible to have the claim surcharge waived. Although guidelines vary by provider and state availability, most accident forgiveness programs are designed to waive the first at-fault loss that occurs on your policy and will waive only one loss within a specified timeframe, typically three to five years.

However, most accident forgiveness programs are optional endorsements that add to the cost of your policy. If you have been with the same company for several years, you may qualify for free accident forgiveness coverage, but most companies charge extra to participate and may have limitations for new drivers or new customers.

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?

Even if you didn't have an accident forgiveness endorsement in place before your crash, there may be ways you can lower your insurance rate: 

• Improve your credit: Depending on the state you live in, your credit-based insurance score may play a role in determining your car insurance rate. Stay within your spending budget, pay debts and address any discrepancies on your credit report to improve your credit standing.
• Increase your deductible: The higher your deductibles on comprehensive and collision coverage, the lower your premium typically is. Before raising your deductible, keep in mind that if you raise your deductible, your out-of-pocket expenses would be higher if you were to file a claim. Most insurance professionals recommend keeping 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 absolutely need to lower your insurance premium, you could consider changing your coverage options. Although you should always review these changes with a licensed agent, lowering the amount of insurance you have could lower your premium. You will still need to maintain your state’s minimum required coverage levels, and if you have a loan or lease, you may need to keep full coverage on your vehicle.
• Consider a different car: The make and model of every vehicle is rated differently by insurance companies and it costs more to insure more expensive vehicles. This comes down to safety ratings, materials, cost of repair and many other factors. If you need to cut down the cost of your car insurance policy, consider getting a vehicle that is cheaper to insure. 

Frequently asked questions

Methodology

Bankrate utilizes Quadrant Information Services to analyze 2023 rates for 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 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 2021 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.