How Much Does Car Insurance Go Up After an Accident?
Expect your car insurance rate to rise by thirty to forty percent after an at-fault crash. Safe driving and shopping around can help you bring those costs back down over time.
Quick Facts
- Who: At-fault drivers see the biggest rate hikes.
- What: Insurance rates increase by an average of thirty to forty percent.
- When: The rate hike starts at your next policy renewal.
- Where: Rates and rules vary by state and insurance company.
- Why it matters: Knowing your options helps you find cheap car insurance after an accident.
An accident happens in a split second. Then, the real headache begins with your insurer. Getting car insurance after an accident can get very expensive quickly. Many drivers do not know how much their monthly bill will rise.
Why Your Rate Changes After a Car Crash
Insurance companies look at risk. If you get into a crash, they see you as a higher risk. They think you might have another crash in the future. To cover this risk, they charge you more money.
Even a small fender bender can raise your rates. This is true if you are the driver who caused the crash. If you are not at fault, your rate might still go up a little bit.
The Average Cost Increase You Can Expect
Most drivers see their rates go up by about thirty to forty percent. This depends on where you live and your driving history. A clean record before the crash will help keep the increase lower.
If you have had multiple crashes, the cost will jump even more. Some companies might even refuse to cover you. It is smart to look at your budget when these costs go up. You can learn more about managing your money on managing your personal budget.
| Type of Accident | Average Rate Increase |
|---|---|
| Clean Record (No Accidents) | 0% (Base Rate) |
| Single Minor At-Fault Accident | 20% to 30% |
| Single Major At-Fault Accident | 40% to 60% |
How Long Does an Accident Stay on Your Record?
In most states, a crash stays on your record for three to five years. Your insurance company will check this record every time you renew. The rate increase will slowly go down over time if you drive safely.
Once those three to five years pass, your rate should return to normal. You just have to avoid getting any more tickets or crashes. Keeping a clean record is the best way to get cheap rates again.
What is an Accident Forgiveness Program?
Some companies offer a special feature called accident forgiveness. This means they will not raise your rate after your first crash. You often have to pay extra for this feature before a crash happens.
Some brands give it to you for free if you drive safely for many years. It is a good option to ask your agent about. If you want to know more about how policies work, check our guide on understanding insurance claims.
Steps to Take Right After a Fender Bender
First, make sure everyone is safe and call the police. You need an official report to show what happened. Next, take clear photos of all the damage on the cars.
Exchange contact details with the other driver. Do not admit fault at the scene of the crash. Let the insurance companies figure out who caused the crash.
How to Find Cheap Car Insurance After an Accident
You do not have to stay with the same insurer if they raise your rate. Shop around and get quotes from other companies. Some brands specialize in helping drivers with a crash on their record.
Ask about discounts you might qualify for. You can get discounts for paperless billing or paying for a full year at once. Taking a defensive driving class can also help lower your monthly bill.
Frequently Asked Questions
Will my rates go up if the accident was not my fault?
Usually, your rates will not go up much if you did not cause the crash. However, some states allow small increases even for no-fault crashes.
Can I hide an accident from a new insurance company?
No, you cannot hide it. Every company checks a national database of insurance claims to see your history.
Does my rate increase start immediately?
No, your rate will not change until your policy renews. This usually happens every six or twelve months.
What is the fastest way to lower my premium?
The fastest way is to raise your deductible. This means you pay more out of pocket if you have another crash.
Should I always file a claim after a crash?
If the damage is very small and no one is hurt, you might not want to file a claim. Paying for small repairs yourself can keep your rate from going up.
Finding affordable car insurance after an accident takes some work, but you have options. Will you start shopping for a new policy today?
National Association of Insurance Commissioners (NAIC), Insurance Information Institute (III).
Labels: auto insurance, budget tips, car insurance, Finance, Insurance, financial advice, saving money
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