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Carol Pope is an insurance writer for Bankrate and prior to joining the team, she spent 12 years as an auto insurance agent. During this time, she sold, serviced and underwrote auto insurance for people across the country. She also has experience selling supplement coverage such as umbrella insurance.
Angelica Leicht is an insurance editor on the Bankrate team. She is truly passionate about helping readers make well-informed decisions for their wallets, whether the goal is to find the right comprehensive auto policy or the best life insurance policy for their needs.
Mark Friedlander is director of corporate communications at III, a nonprofit organization focused on providing consumers with a better understanding of insurance.
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Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories, except where prohibited by law for our mortgage, home equity and other home lending products. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service.
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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 an at-fault accident. You might also wonder how the accident will affect your car insurance premium and how accident forgiveness comes into play (if at all).
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Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.
Typically, your car insurance rates tend to go up after an at-fault accident, since insurers will now assess you as a higher-risk driver and determine that you’re more likely to file claims in the future. 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 (under age 25) may see the highest increases after an accident, since insurers tend to view them as an especially risky group to insure.
Based on Bankrate’s analysis of insurance rates from Quadrant Information Services, we found that, on average, premiums for full coverage insurance go up an estimated $750 after an accident. Here are average rates before and after an accident:
While nearly every auto insurance company will raise your rates after an at-fault accident, the amount can vary noticeably between companies. Below, we compiled the average auto insurance rates for full coverage before and after an accident from many of the largest U.S. providers by market share.
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.
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.
Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.
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 can impact your premium, especially if you file multiple claims in short succession. But the good news is that your rate may drop back to baseline after a few claims-free years.
If your rate becomes unmanageable after an accident, it may help to explore your options by requesting free online insurance quotes. However, it’s important to be forthright about your claims history when doing so. Many insurers will not order your driving record during the quoting process and instead rely on the information you give them to calculate your estimated premium. Failing to disclose driving activity could generate an artificially low rate, which will then be adjusted after you agree to switch your car insurance.
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:
*Note: State Farm accident forgiveness is only extended to accident-free drivers who have been insured by the company for at least nine years. Additionally, 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 five years tenure as a policyholder.
On average, at-fault car accidents stay on your driving record for three to five years. However, the exact length of time depends on your state and the severity of the incident. For example, in New York State, an accident or traffic violation will stay on your record until the end of the year when the incident occurred, plus three years after. In Oregon, an accident or violation will remain on your record for five years.
If you’re involved in a DUI or reckless driving crash, expect the incident to stay on your record for a minimum of five years to a maximum of your entire lifetime. You can check your state’s Department of Motor Vehicles (DMV) website for information about driving record requirements where you live.
Even if you don’t qualify for accident forgiveness, there may be several steps you can take to try and lower your car insurance premiums after a claim:
Even if you don’t qualify for accident forgiveness from your car insurance provider, there may be ways you can lower your insurance rate after an accident. The best way to figure out how to save is to speak with your insurance agent. For example, they may suggest discounts for low-mileage drivers, students or being a member of a certain occupation or organization, as well as bundling your auto and home policies with the same insurer. Regardless of your driving history, these discounts may be able to lower your premium, sometimes by 25% or more. This is because most discounts can be stacked together, maximizing how much you save and getting you closer to the cheapest rates you are eligible for.
If you’re not sure where to start, these methods could help you save money on your premium after an accident:
The answer to whether or not you should file a claim with your insurance company and risk your rate increasing depends on a few different factors. If you were in a minor accident, it may be worth getting quotes to determine the cost of repairs. You can then weigh the repair costs against the cost of any deductible you might have related to the claim. However, if you caused a serious accident that resulted in bodily injury or property damage, it may be beneficial to file an insurance claim. Reviewing your potential claim situation with your agent may be helpful to determine which route you should take.
Many regional and nationwide car insurance companies offer some kind of accident forgiveness to enrolled drivers, though the qualifications and availability will likely differ by carrier and state. Some of the insurance companies that offer accident forgiveness include Allstate, Geico, Nationwide, Progressive, The Hartford and USAA.
An at-fault accident typically affects your car insurance rates for between three to five years on average. However, the time it takes for car insurance costs to decrease after an accident will generally depend, in part, on the type of accident that occurred and your driving history. For example, an at-fault accident typically affects your auto insurance premiums for three to five years. But if you have another at-fault accident within that time frame, it could result in paying higher premiums for a longer period of time. To find out how insurance claims affect your premiums, contact your insurance company.
No, an insurance rate increase will not affect your credit score. However, if you live in certain states, your credit score can impact how much you pay for auto insurance or make it difficult to qualify for the cheapest rates.
Bankrate utilizes Quadrant Information Services to analyze 2022 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. 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:
To determine minimum coverage limits, Bankrate used minimum coverages that meet each state’s requirements. Our base profile drivers own a 2020 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.
Incident
Rates were calculated by evaluating our base profile with the following incidents applied: clean record (base) and an at-fault accident.
Carol Pope is an insurance writer for Bankrate and prior to joining the team, she spent 12 years as an auto insurance agent. During this time, she sold, serviced and underwrote auto insurance for people across the country. She also has experience selling supplement coverage such as umbrella insurance.
Angelica Leicht is an insurance editor on the Bankrate team. She is truly passionate about helping readers make well-informed decisions for their wallets, whether the goal is to find the right comprehensive auto policy or the best life insurance policy for their needs.
Mark Friedlander is director of corporate communications at III, a nonprofit organization focused on providing consumers with a better understanding of insurance.
Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories, except where prohibited by law for our mortgage, home equity and other home lending products. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service.
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How Much Will My Car Insurance Go Up After An Accident? – Bankrate.com
