Does car insurance go up after an accident claim?
Your premium will jump an average of 58% after an at-fault accident, but the rate of the actual increase depends on the details of the claim, the state in which you live and your insurance company.
Written by
Writer, Fox Money
Mark Vallet has spent more than 18 years covering the insurance industry, with bylines at CarInsurance.com, Insurance.com, Insure.com, and Yahoo News.
Updated September 25, 2024, 11:03 AM EDT
Written by
Editor, Fox Money
Leslie Kasperowicz is the former managing editor at insurance marketplace Quote.com. She has spent more than a decade writing about auto and home insurance after spending four years in customer service with Farmers Insurance.
Fox Money is a personal finance hub featuring content generated by Credible Operations, Inc. (Credible), which is majority-owned indirectly by Fox Corporation. The Fox Money content is created and reviewed independent of Fox News Media. Credible is solely responsible for this content and the services it provides.
On average, your premium will jump 58% after an at-fault accident, but the rate increase will vary depending on the details of the claim, the state in which you live and your insurance company.
Insurers use proprietary algorithms that can result in dramatically different rate increases after an accident. Our analysts found Geico rates increase the most after an accident – with an average increase of 82%.
An accident forgiveness endorsement on your policy can prevent a rate increase after your first accident, but this typically comes at an additional cost and not all insurance companies offer it.
Key highlights
- Car insurance premiums increase an average of 58% after an at-fault accident, but the increase will vary by where you live and your insurance company.
- New Jersey residents see the biggest increase after an accident, with rates jumping by an average of 80%. Rhode Island has the smallest increase; premiums only go up by about 15%.
- Geico policyholders see the biggest increase after an accident with an 82% rate increase while State Farm averages a 23% increase.
How much does your insurance go up after an accident?
In almost all situations, your car insurance rates will increase after an accident. According to our analysis, car insurance rates go up an average of 58% after just one at-fault accident, which translates into a $1,099 a year increase on average.
While it varies by state and insurance company, an accident will typically affect your premium for at least three years. Even a minor crash makes you a greater risk in the eyes of your insurer and they will charge a higher premium to cover that increased risk.
What type of insurance covers you in an accident?
Depending on the type of accident and who is at fault, different portions of your car insurance will apply. Here is how each coverage protects you after an accident.
- Liability: This coverage will help pay for any damage you do to other people or their property. If you injure another driver or damage their vehicle, liability will help cover the costs. It will cover medical and legal bills as well as the cost of repairing the other vehicles involved in the accident.
- Collision: This coverage pays to repair or replace your vehicle after a collision with another vehicle or object. This coverage also will cover the cost to repair or replace your own vehicle after an accident in which no other driver’s insurance is covering damage. This includes accidents where you are at fault and single-vehicle accidents. Collision typically pays out actual cash value for the vehicle – a car's fair market value less depreciation – and comes with a deductible.
- Personal Injury Protection (PIP): This insurance is typically only used in no-fault states and will help cover medical bills for you and your passengers after an accident, regardless of who is at fault. PIP may also cover lost wages.
- Uninsured/underinsured motorist: This coverage pays for injuries and damages caused by a driver who either lacks insurance or whose limits are not high enough to cover the damage.
How much do car insurance rates increase in each state after an accident?
On average, New Jersey drivers see the biggest increase after an accident with premiums jumping 80%, pushing the average rate up $1,531 a year. California is a close second with a 76% jump and Mississippi rounded out the top three with a 71% increase.
Rhode Island has the smallest increase; premiums only went up 15% or $316. New York rates go up 28% and Alaska has a 32% increase.
The data also found that:
- Drivers in 29 states see premium increases of 50% or more after an accident.
- The increase in 23 states is over $1,000 a year.
- Premium increases are over $500 a year in every state except Rhode Island.
The rates below were collected from auto insurance comparison site CarInsurance.com for single, 40-year-old male and female drivers of a 2023 Honda Accord LX with a good insurance score and no violations on their record for full coverage insurance policy with liability limits of 100/300/100 and a $500 comprehensive and collision deductible.
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How long will an accident affect my car insurance rate?
It varies by state and insurance company but, in most cases, an accident will stay on your record and increase your premium for three to five years.
“Be aware that your crash and claim filing history will follow you and that information will be used by a new insurance company,” says Carole Walker, executive director with Rocky Mountain Insurance Association, a nonprofit organization that represents property and casualty insurers in Colorado, New Mexico, Utah and Wyoming.
“Insurers use CLUE Reports or "Comprehensive Loss Underwriting Exchange" to track your loss history and determine rating and [underwriting]. A CLUE report can reflect up to five years of claims filing,” she says.
How much do car insurance rates increase by company after an accident?
Insurance companies use proprietary algorithms to determine premiums, which can lead to dramatically different rates. The same can be said for increases after an accident; how much your rate goes up will be impacted by the insurance company you use.
Our data shows that Geico policyholders see the biggest increase after an accident with an 82% bump. Farmers will push your rate up 67% or $1,604 a year after an accident while Allstate and Nationwide tie for third with a 66% increase.
State Farm drivers see the smallest increase after an accident with rates going up by 23%, which translates into an average increase of $452. USAA premiums increase 51% with Travelers and Progressive seeing 56% increases.
The numbers clearly show that shopping for new coverage after an accident can help you save some money. Allstate drivers see an average increase of $1,647 while State Farm only pushes your rate up $452, a difference of $1,195.
The chart below shows the average percent and dollar amount increase after an accident:
* USAA is only available to active and retired members of the military and their families.
How can I lower my car insurance rates after an accident?
While a car accident will almost always push up your premium, there are a few ways to save money even with an accident on your record. Here are a few tips for keeping your premium affordable:
Shop your coverage: This is probably the best way to lower your premium after an accident. Insurers rate risk differently, so the cheapest insurer for you before the accident may not be the best after a collision.
Get quotes from a variety of insurers, including smaller regional insurance companies. Always check the financial health of any insurer you are seriously considering.
Raise your deductible: Collision and comprehensive coverage both have a deductible, and raising your deductible will lower your premium. If you can afford to double your deductible, you should see a significant rate drop. But always choose a deductible you can afford in the event you have to make a claim.
Seek out discounts: Insurance companies offer plenty of discounts – for example, good driver discounts or low-mileage discounts.
“Be sure to ask about all available discounts from vehicle safety to higher deductibles and multi-lines for bundling auto policies, homeowners, and renters coverage,” says Walker of the Rocky Mountain Insurance Association.
Improve your credit score: In most states, insurers are allowed to use credit scores when setting a rate. If your credit score is less than stellar, improving it will lower your premium. This is not a short-term fix; raising a credit score takes time, but it can make a big difference in the rates you pay.
Take a defensive driving class: Many insurers will offer a discount if you take and pass a defensive driving course; check with your insurer for approved courses.
Enroll in a safe driving programs: Many insurers offer safe driving programs that monitor your driving habits via an app or plug-in device and offer a discount for safe habits. This can be an easy way to lower your premium if you are a good driver.
Change your coverages: Dropping certain coverages or lowering your liability coverage levels will typically result in a lower premium, but it also increases the chances you will be covering damages out-of-pocket if you are responsible for a serious accident. If you have a loan or lease on your vehicle, your lender will require that you carry full coverage. Always check with your agent before making substantial changes to your policy.
Change cars: This option is a bit extreme, but if you desperately need to lower your insurance payment, consider switching to a different car. “Sports cars and high-end luxury vehicles are almost always more expensive to insure because of repair costs. The luxury materials used in these vehicles [tend] to be much more expensive to repair than the finishes in a moderately priced vehicle,” Walker says.
Small, inexpensive sedans will often be cheaper to insure than a sports car or SUV. Minivans are also typically cheaper to insure than other vehicle types.
How can I keep my car insurance rate from going up after a crash?
The best way to keep your rates from going up after an accident is to have accident forgiveness on your policy. Accident forgiveness is an optional coverage or endorsement on your policy that keeps your premium from increasing after your first accident.
This is not standard coverage and typically costs a bit more, but some insurance companies offer it free of charge to policyholders who have been accident-free for a certain amount of time, often three to five years.
The following insurance companies offer accident forgiveness. Check with your insurer if they offer this endorsement and if you qualify:
- Allstate
- Farmers
- Geico
- Liberty Mutual
- Progressive
- Nationwide
- Travelers
Do insurance rates go up after a not-at-fault accident?
It is certainly possible, but it often depends on the circumstances, your insurer and the state you call home.
According to a study by the Consumer Federation of America, numerous companies raised rates for drivers involved in a not-at-fault accident. According to the report, Progressive surcharged not-at-fault drivers almost always while State Farm never increased rates after a not-at-fault accident.
Two states, California and Oklahoma ban insurers from increasing your rates after an accident that was not your fault.
Frequently asked questions
What is the cheapest car insurance after an accident?
Car insurance rates vary widely among the top carriers, especially for drivers who have a less-than-perfect record.
Our rate analysis shows that State Farm customers see the smallest increase in rates after an accident on average, from $1,975 per year to $2,427, or 23%.
Geico policyholders see the largest rate increase on average – from $1,763 per year to $3,207, or 82% – after they’ve been in an accident.
Bear in mind that car insurance rates are highly personalized and depend on a number of factors in addition to a driver’s record. The rates presented here are for illustration purposes only.
Why do rates go up after an accident?
Insurers will consider you at a higher risk for another accident or other claim after an accident and will raise your rates to reflect that increased risk. This is particularly true if the accident is your fault.
One of the only ways to avoid a premium increase after an accident is to carry an accident forgiveness endorsement on your policy.
Will a hit-and-run claim raise my insurance?
It will vary depending on your insurance company and where you live. There is a good chance your insurance rates will go up regardless after a hit-and-run accident, even though it is not your fault. Some insurers, like State Farm for example, keep the premium increase small.
Currently, only California and Oklahoma prevent insurance companies from raising your rates for a claim that was not your fault.
How much will my insurance go up if my teenager has an accident?
Teens are already extremely expensive to insure, and rates will go up if your teen has an accident. According to Insure.com data, the average rate for full coverage is $7,136 for a 16-year-old driver and $5,938 a year for a 17-year-old.
An accident will push that rate even higher. Our analysis shows that the average increase after an accident is 58%, so expect your teen’s rate to increase dramatically if they are involved in an accident.
Can you get car insurance after an accident?
Absolutely. Most minor accidents will not prevent you from getting an insurance policy, but your rates will increase in many cases, making it a great time to shop your coverage for a new policy.
It should be noted that if you have multiple tickets, accidents, and claims on your record you may find it hard to get a new policy. While most insurers will happily work with a driver with an accident on their record, if you make multiple claims within a few years you could be at risk of being dropped.
Does State Farm have accident forgiveness?
No, State Farm does not currently offer accident forgiveness to their policyholders. However, these insurance companies do:
- Allstate
- Farmers
- Geico
- Liberty Mutual
- Progressive
- Nationwide
- Travelers
Methodology
Editors collected rate information from auto insurance comparison site CarInsurance.com for single, 40-year-old male and female drivers of a 2023 Honda Accord LX with a good insurance score and no violations on their record for full coverage insurance policy with liability limits of 100/300/100 and a $500 comprehensive and collision deductible.
In addition, we also calculated rates for these hypothetical drivers, but with one or more of the following on their record: speeding ticket, at-fault accident, DUI/DWI, poor credit history, or a lapse in coverage.
We analyzed more than 53 million quotes, over 34,000 ZIP codes, and 170 insurance companies nationwide.
Note: 100/300/100 means up to $100,000 for the medical bills of those you injure, up to $300,000 per accident for bodily injury liability for all persons injured in one accident, and $100,000 to repair other drivers’ cars and property you damage.