Car insurance rates go up an average 42% after an at-fault accident, according to QuoteWizard research.
That’s just an average, though. Depending on various factors, your car insurance rates may not increase at all after an accident — or they might double. Our data supports both of these situations and everything in between.
Two important factors that determine how much car insurance rates go up after an accident are where you live and where you bought your policy. Who caused the accident — you or the other driver — plays a vital role, too.
In this article, we’ll cover:
- How much car insurance rates go up after an accident
- Which companies offer the best rates after an accident
- How long insurance rates remain higher after an accident
- How to lower car insurance rates after an accident
How much do insurance rates increase after an accident?
Your car insurance rates may not go up at all after an accident — or your premium might double.
Whether your car insurance rates increase after an accident and how much they increase depends on factors like:
- The state you call home.
- The insurance company that provides your coverage.
- If you caused the accident or not.
- If you file a claim for damages related to the accident.
Here’s how much car insurance rates go up in certain states after an at-fault accident, based on our research. Keep in mind that these average rates are for a full-coverage policy, which generally includes liability, collision and comprehensive coverages.
Our sample California driver’s car insurance rates increased 74% after an at-fault accident. That’s the biggest increase we saw in any state.
| State | Before accident | After accident | Increase | |
|---|---|---|---|---|
| California | $1,996 | $3,480 | 74% | |
| Florida | $4,651 | $6,958 | 50% | |
| Illinois | $2,580 | $3,946 | 53% | |
| Texas | $3,011 | $4,404 | 46% | |
| Wyoming | $1,577 | $2,109 | 34% | |
| Note: Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | ||||
Here’s how much the largest insurance companies in the U.S. raise auto insurance rates after an accident.
| Company | Before accident | After accident | Increase | |
|---|---|---|---|---|
| GEICO | $2,483 | $3,957 | 59% | |
| Progressive | $1,995 | $3,075 | 54% | |
| State Farm | $1,506 | $1,840 | 22% | |
| Travelers | $2,979 | $3,842 | 29% | |
| USAA | $1,257 | $1,725 | 37% | |
| Note: Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | ||||
Your car insurance premium will go up the least after an accident if State Farm provides your coverage and if your profile is similar to our sample driver. State Farm raised our driver’s rates by an average 22% after an at-fault accident.
At first glance, Travelers seems like a good option here, too, as it raised our driver’s rates by an average of 29% after an accident. There’s one big difference between State Farm and Travelers when it comes to increasing car insurance premiums after an accident, though. The average premium State Farm offered our driver after an accident is $1,840 per year. Travelers’ average premium for the same driver: $3,842 per year.
Get cheap car insurance after an accident
Which companies offer the cheapest rates after an accident?
Virginia Farm Bureau offers the cheapest car insurance rates after an accident, according to our data. Virginia Farm Bureau offered our sample driver an average annual rate of $815 for a full-coverage policy after an accident.
North Carolina Farm Bureau, Wadena and PEMCO also offered cheap car insurance rates to our sample driver with an at-fault accident on his record.
USAA offers the cheapest car insurance rates after an accident among large insurers, based on our research. USAA offered our sample driver an average annual rate of $1,725.
Here are the average annual rates other top car insurance companies offer after an at-fault accident.
When do car insurance rates go up after an accident?
If your car insurance rates go up after an accident, the increase usually happens when it’s time to renew your policy.
Should your insurer raise your premium after an accident, use it as an opportunity to shop around for a better deal. Get quotes from a handful of other insurance companies and compare them.
You might find that another company will give you a lower car insurance rate than your current provider, even with an accident on your driving record.
How long do insurance rates remain higher after an accident?
If your car insurance rates go up after an accident, they might remain higher for three to five years.
That’s because accidents typically stay on your insurance record for three to five years, so they may impact your car insurance premium for the same amount of time.
Why do insurance rates go up after an accident?
The most likely reason car insurance rates increase after an accident is that the accident causes your insurer to consider you a high-risk driver. And insurers generally charge higher rates to people they consider higher risks for causing accidents or filing claims.
Also, if you file a claim for damage caused by an accident, it will usually prompt your insurer to raise your rate.
Will my insurance rates go up if I didn’t cause the accident?
Yes, your car insurance rate may go up after an accident, even if you didn’t cause the crash.
This is especially true if you file a claim related to the accident. Any time you file a claim, there's a chance your rate will go up.
That said, your auto insurance premium is less likely to increase after an accident you didn’t cause than it is if you caused it.
How can I lower my car insurance rate after an accident?
One of the best ways to lower your car insurance premium and get cheaper coverage after an accident is to switch companies. Get quotes from several insurers and compare them to see if one or more will offer you a better rate.
Here are a few other ways you can lower your rate and get cheaper car insurance after an accident:
- Wait — and in the meantime avoid getting into any more accidents or filing additional claims.
- See if you qualify for any auto insurance discounts.
- Consider dropping coverage you don’t need, lowering your limits or increasing your deductibles.
Can accident forgiveness keep my car insurance rate from going up after an accident?
Accident forgiveness can prevent your car insurance rate from increasing after an accident.
Having accident forgiveness doesn’t guarantee your car insurance premium won’t go up at all after an accident, though. It may keep your insurer from raising your premium because of the crash, but if the crash causes you to lose your good driver discount, for example, your premium might go up by 20% anyway.
Still, accident forgiveness can be a good perk to have, especially if your insurance company gives it to you for free, as some do.
Methodology
The sample quotes used for this study are based on a 30-year-old single male driver with a 2012 Honda Accord LX. Unless otherwise stated, the driver has a clean driving record with no prior insurance. He drives an average 13,500 miles annually.
Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary.
References:
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