Auto Insurance Premiums: Understanding Collision Coverage Costs

If you've been in a car accident, you're probably wondering how much your insurance will go up. The answer depends on several factors, including the severity of the accident, your driving record, and the insurance company you're with. On average, car insurance rates increase by around 45% after an at-fault accident, but this can vary significantly from company to company. Some companies may not raise their rates at all for small accidents, while others may increase rates by up to 70%. Your location also plays a role, with states like California and North Carolina seeing higher rate increases.

If you're concerned about your insurance rates going up, there are a few things you can do. You can shop around for a new insurance company, as rates vary widely between insurers. You can also try to improve your credit score, raise your deductible, or look for discounts and other ways to lower your premium. Additionally, if you have accident forgiveness on your policy, your rate may not go up at all after your first accident.

How much insurance increases after an accident

The increase in insurance costs after an accident depends on a variety of factors, including the driver's age, location, type of vehicle insured, and insurance provider. On average, car insurance rates go up by around 49% if you cause an accident, which equates to an increase of $80 per month for full coverage. However, the increase can be much higher in certain states, such as California, where an accident will double full coverage insurance rates. Conversely, an accident in Alaska will only increase rates by 26%.

The severity of the accident also plays a role in determining the increase in insurance rates. Accidents that cause serious injury, extensive property damage, or are a result of intoxication will lead to substantial increases in insurance rates and may even result in policy non-renewal. Additionally, young drivers tend to experience the highest increases after an accident, as insurers view them as a high-risk group.

It's important to note that insurance rates may still increase even if you are not at fault for the accident, especially if you have made multiple claims within a short period. This is because insurance companies calculate premiums based on risk, and any accident, regardless of fault, indicates a higher chance of future incidents.

To mitigate the increase in insurance rates after an accident, you can consider enrolling in an accident forgiveness program, improving your driving record, or taking advantage of various discounts offered by insurance companies.

Cheap car insurance after an accident by company

There are several options for cheap car insurance after an accident, depending on your driver profile, location, and vehicle. Here is a list of some of the cheapest car insurance companies after an accident, in no particular order:

• State Farm
• Geico
• Travelers
• Progressive
• Nationwide
• USAA (for military members)
• Erie Insurance
• Auto-Owners
• American Family
• The General
• Liberty Mutual
• Allstate
• Farmers
• Central Insurance
• Country Financial

Cheap car insurance after an accident by state

The cost of car insurance varies across the United States, and an accident can cause your premium to increase by 26% or more, depending on your insurance company. The average rate for drivers with an at-fault accident is $336 a month.

• Louisiana: Southern Farm Bureau
• Maine: Farm Bureau Financial Services
• Mississippi: American Farmers & Ranchers
• Tennessee: Tennessee Farm Bureau
• Virginia: Virginia Farm Bureau

However, USAA is the cheapest option in many states, but it is only available to military, veterans and their families.

It's possible to get a lower rate after an accident

It is possible to get a lower rate after an accident. Shopping around for a new policy can help you find a better rate, especially if you have a good driving record. Comparing quotes from different car insurance companies can help you identify the best rate for your circumstances.

While an accident will typically affect your insurance rates for three to five years, you may be able to find a cheaper rate by switching providers. Different insurance companies weigh at-fault accidents differently when calculating rates, so it's worth exploring other options.

You can also consider the following strategies to lower your car insurance rates:

• Improve your credit score: In most states, insurance companies use credit scores to determine insurance rates. Improving your credit score can help lower your insurance premiums over time.
• Increase your deductible: Raising your deductible will lower your premium, but keep in mind that this means higher out-of-pocket expenses if you need to file a claim in the future.
• Look for discounts: Many car insurance companies offer various discounts, such as good student discounts, multi-policy discounts, and usage-based telematics programs.
• Update your coverage choices: Review your coverage options with a licensed agent and consider reducing coverage you no longer need. However, ensure you still meet the minimum required coverage levels in your state.
• Consider a different car: The make and model of your vehicle can impact your insurance rates. Insuring a more affordable vehicle may help lower your premiums.

Do insurance rates go up after a no-fault accident?

Whether your insurance rates go up after a no-fault accident depends on several factors, including the state you live in, the insurance company you're with, and your previous driving record.

In general, a no-fault accident won't cause your car insurance rates to rise, as the at-fault party's insurance provider will be responsible for your medical expenses and vehicle repairs. If your insurer doesn't need to pay out, your premiums won't go up. However, if you previously caused an accident or made a claim, your auto insurance rates may increase after a no-fault collision. According to the Consumer Federation of America, drivers who have been involved in no-fault accidents see an average premium increase of 10%.

Some states, like California and Oklahoma, don't allow insurance companies to increase rates after a non-fault claim. However, in other states, your insurance rates may go up, especially if the at-fault driver has little or no car insurance, and your insurer has to dip into your uninsured/underinsured motorist coverage to cover your accident-related expenses.

Additionally, a no-fault accident will show up on your driving record and may be considered an indicator of a higher likelihood of future accidents. A no-fault accident will typically stay on your driving record for 3 years, although this duration may vary depending on the state and the severity of the collision.

To prevent or mitigate rate increases after a no-fault accident, you can consider shopping around for better rates from insurers who don't surcharge for no-fault accidents, reviewing your coverage to ensure you're not over-insured, and improving your credit score, as this can impact your insurance rates in most states.

Frequently asked questions