Auto Insurance After An Accident: What To Expect From Your Rates

Car insurance rates typically increase after an accident, especially if the policyholder is at fault. The increase can be substantial, with some sources citing an average increase of around 40-50% for at-fault accidents. The exact amount depends on several factors, including the insurance company, the state, the severity of the accident, and the driver's history.

Even if the driver is not at fault, their insurance rates may still increase if they file a claim with their insurance company. However, the increase is usually not as high as it would be for an at-fault accident.

To prevent insurance rates from increasing after an accident, drivers can consider enrolling in an accident forgiveness program, improving their credit score, increasing their deductible, or shopping around for a new insurance provider.

How much does insurance go up after an accident?

The amount by which your insurance premium goes up after an accident depends on several factors, including your insurance company, the state you live in, the car you drive, the severity of the collision, and whether the accident was your fault.

If you are deemed to be at fault, your premium is likely to increase by a significant amount. On average, a full-coverage premium will increase by about 42% after an at-fault accident, with an average increase of $840 per year. However, if the accident causes serious injury, extensive property damage, or is due to intoxication, your insurance rates could increase substantially more, and your insurer may even deny your policy renewal.

If you are not at fault, your insurance premium may still be impacted, especially if your insurance company pays to cover your claim. In this case, your rates could increase depending on your state and insurance company. Generally, your rate will go up by 10% or less if you are not at fault.

It's worth noting that an accident will usually only affect your insurance rate for three to five years. After a few years of being claim-free, your auto insurance rates will likely drop back down.

How long does an accident stay on your record?

An accident will typically stay on your insurance record for three to five years, but this can vary depending on several factors. These include the state you live in, the type and severity of the accident, and your insurance company.

For example, in California, accidents and minor violations stay on your record for three years, while DUI convictions remain for ten years. In New York, accidents stay on your record for three years from the end of the year in which the accident occurred. In New Hampshire and Oregon, accidents stay on your record for five years.

The length of time an accident stays on your record can also depend on the violations associated with the accident. For instance, in Florida, alcohol-related violations stay on your record for 75 years.

It's important to note that even if an accident is not your fault, it can still affect your insurance rates and stay on your record. However, some states prohibit insurance companies from raising rates after a not-at-fault accident. Additionally, some insurance companies offer accident forgiveness, which can help prevent rate increases after an accident.

Will my rates go up if I wasn't at fault?

Whether or not you were at fault, your insurance rates may still increase after an accident. However, if you weren't at fault, the increase is likely to be smaller than if you were responsible.

In a 2021 survey, The Zebra found that a no-fault accident increased annual auto insurance premiums by an average of $67 in 2020. This is a much smaller increase than the average increase of $872 per year for at-fault accidents.

If you live in a no-fault state, the at-fault party's insurance provider will be responsible for your medical expenses and vehicle repairs. In this case, your insurer won't have to pay out, so your premiums won't go up. However, if you live in an at-fault state, your insurer may still raise your rates after a no-fault accident, especially if you've made more than one claim within a set period of time.

Some states, such as California, Oklahoma, and Massachusetts, prohibit insurance companies from increasing rates after a no-fault accident. In California, for example, insurance companies can only increase your rates if you were "principally at fault", meaning at least 51% responsible for the accident.

If your insurance rates do go up after a no-fault accident, you may want to consider switching to another insurance provider.

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

Yes, there are several ways to prevent your insurance rates from going up after an accident. Here are some strategies to mitigate the increase:

• Accident forgiveness programs: If you are enrolled in an accident forgiveness program before the accident, you may be eligible to have the surcharge waived. Most programs allow you to waive the first at-fault accident from your policy, but usually only one loss within a set timeframe of three to five years. Many insurance companies offer accident forgiveness, either as part of a standard policy or as a separate rider that can be purchased.
• Safe driving history: If you have an overall safe driving history, your insurer might be more lenient about a single accident.
• Defensive driving course: Completing a defensive driving course may help keep your rates low, as some insurers offer discounts for drivers who voluntarily take these courses.
• Accident forgiveness in your policy: Some insurance policies include accident forgiveness, meaning they won't raise your premium after your first accident.
• Clean driving record: If you have a clean driving record, some insurers may offer accident forgiveness as a free perk.
• Shop around for insurance: Different insurance companies have varying policies on adjusting rates after an accident. You may find a better rate with another provider, especially if you have a good driving record or low-risk profile.
• No-fault accident: If the accident was not your fault, your rates may not increase as much, or at all. However, if you file a claim against your own insurance company, your rates may still go up.

How can I lower my insurance rates after an accident?

Even if you weren't at fault, your insurance rates may increase after an accident. This is because insurers may now see you as a high-risk driver. However, there are several ways to lower your insurance rates after an accident:

• Shop around for a new insurer: Different insurers have different policies on adjusting rates after an accident, so you may be able to find a better rate with another provider, especially if you have a good driving record.
• Look for discounts: Many insurers offer a range of discounts, such as multi-policy discounts, multi-car discounts, safe driver discounts, and more.
• Improve your credit: In most states, car insurance companies can consider your credit-based insurance score when determining rates. Taking steps to improve your credit rating may help bring down your insurance rate over time.
• Increase your deductible: The higher your deductible, the lower your premium will typically be. However, keep in mind that a higher deductible means you'll have to pay more out of pocket if you file a claim.
• Take a defensive driving course: Many insurers offer discounts to drivers who complete a qualified defensive driving course.
• Consider a different car: The make and model of your car can affect your insurance rates. Insuring a sports car, for example, is typically more expensive than insuring a sedan.
• Review your coverage options: You may be able to lower your premium by reducing coverage you no longer need, but be sure to maintain the minimum required coverage levels in your state.

Frequently asked questions