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How Much Does Insurance Go Up After an Accident?

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Dana George
Ben Gran
By: Dana George
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Dana George has a BA in Management and Organization Development from Spring Arbor University. For more than 25 years, she has written and reported on business and finance, and she's still passionate about her work. Dana and her husband recently moved to Champaign, Illinois, home of the Fighting Illini. And though she finds the color orange unflattering on most people, she thinks they'll enjoy Champaign tremendously.

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 and  Ben Gran
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The whole point of buying auto insurance is to help protect drivers (and their bank accounts) in case of an accident. But unfortunately for Americans' household budgets, the costs of car insurance and recovering from car crashes have skyrocketed in recent years.

According to analysis from Bloomberg, car insurance rates went up 37% from January 2020 to January 2024. And for drivers who happen to get in a car accident, the cost of car insurance can be even higher. That's because the cost of car repairs has gone up even more -- a 48% increase since January 2020.

Car insurance companies have to cover the costs of car repairs while still making a profit. When a driver gets in a car crash, the cost of the driver's car insurance will likely go up afterwards.

Let's take a closer look at how much car insurance goes up after an accident -- and see how drivers can protect themselves from fast-rising auto insurance premium costs.

How much does insurance go up after you're at fault in an accident?

How much more a motorist will pay for auto insurance if they're at fault in an accident depends on a number of issues, including the state they live in and which auto insurance company they use.

How much rates go up after an accident, by state

The amount rates can go up depends on the specifics of an accident. But the following table shows how much rates increase -- on average -- after an at-fault accident in each state. These averages refer to a policy with:

  • $100,000 in bodily injury per person
  • $300,000 bodily injury per accident
  • $100,000 coverage for property damage

We've rounded for simplicity.

State Average Rate Increase
Alabama 55%
Alaska 46%
Arkansas 67%
Arizona 53%
California 68%
Colorado 43%
Connecticut 60%
Delaware 38%
District of Columbia 46%
Florida 49%
Georgia 60%
Hawaii 41%
Idaho 46%
Iowa 40%
Illinois 52%
Indiana 63%
Kansas 46%
Kentucky 58%
Louisiana 62%
Maine 55%
Maryland 56%
Massachusetts 58%
Michigan 49%
Minnesota 42%
Mississippi 67%
Missouri 54%
Montana 44%
Nebraska 51%
North Carolina 67%
North Dakota 43%
New Hampshire 54%
New Jersey 92%
New Mexico 40%
New York 38%
Nevada 51%
Ohio 57%
Oklahoma 51%
Oregon 58%
Pennsylvania 72%
Rhode Island 4%
South Carolina 44%
South Dakota 38%
Tennessee 57%
Texas 71%
Utah 55%
Vermont 41%
Virginia 52%
Washington 49%
West Virginia 52%
Wisconsin 57%
Wyoming 36%
Data source: Insurance.com. Data as October 2023.

Here's what these rate increases could mean for someone's everyday budget. Let's say a driver lives in Arkansas and currently pays $1,200 per year for coverage ($100 per month). If they were the at-fault driver in an accident, their premium could go up by 67%. So, instead of paying $1,200 per year for coverage, they would pay $2,004 ($167 per month).

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

Typically, no, insurance rates won't increase following a no-fault accident. The insurance company of the at-fault driver is responsible for all expenses, from vehicle repairs to medical costs. As long as an insurer does not have to pay out any money, it won't increase the policy rate beyond the overall premium rate increases that insurance companies are charging to all customers, based on market conditions.

How long do accidents stay on insurance records?

A car accident typically stays on a driver's insurance record for three to five years. That said, drivers should do everything within their power to avoid traffic tickets and additional accidents during that time. If a policyholder is involved in another incident within that time frame, their insurance rates are likely to skyrocket.

Should I file a claim after an accident?

It depends on what happened. Let's say a driver lives in California. They slide off the road in a rainstorm, hit a neighbor's mailbox, and dent the front bumper of their car. Now they need to decide if they should file a claim. They were definitely at fault, but there are a couple of factors to consider. The first is that filing a claim means the accident (no matter how small) will remain on their insurance record for three to five years.

In addition, because they live in California, their insurance premium may increase by 68% as a result of the claim. Say they're currently paying $1,200 per year for coverage. That means it could jump to $2,016 per year (or $168 per month). Multiply that $816 annual increase by three years (the minimum amount of time the accident will remain on their record). That's a total of $2,448 ($816 x 3 = $2,448). Can they repair the mailbox and car for less than that amount? If so, the driver is better off taking care of it out of pocket.

Another thing to consider is their car insurance deductible. Say they have a $1,500 deductible. If they can get repairs for around that price (or less), it makes little sense to file a claim.

Important note:

Any time a driver is in an accident with other drivers, they should call the police. If they're in an accident and it appears the other party is at fault, the police should still be called, even if the other party asks them not to. Insurance companies will request a police report, and it can help bolster the no-fault driver's side of the story if the other driver decides to change their account of events.

What is accident forgiveness?

Accident forgiveness is a type of auto insurance that can prevent a driver's rates from going up after an accident. Depending on the insurer, accident forgiveness may be awarded after a period of safe driving, or a driver may pay extra to add it to their policy. If a driver has accident forgiveness, their policy may not go up after their first at-fault accident.

Some of of the big-name companies currently offering accident forgiveness are:

  • State Farm
  • USAA
  • Geico
  • Progressive
  • Liberty Mutual
  • Nationwide
  • Travelers
  • The Hartford

How to lower insurance costs after an accident

If a driver is in an accident and was at fault, their car insurance premium is likely to increase. But even after an accident, drivers still have a few options to get cheaper car insurance.

1. Rate shop

There's no reason not to shop around with other insurers after a premium increase. In fact, it's smart for drivers to shop around once a year anyway, just to make sure they have the most complete coverage for the price. Depending on the severity of the accident, the policyholder may find themselves shopping for high-risk car insurance. No insurer is going to ignore an at-fault accident, but some charge less for premiums than others.

2. Increase your deductible

If a motorist currently has a low deductible, they should be able to lower the price of their policy by increasing the deductible. Before doing so, drivers should review their budget to make sure they have enough in emergency savings to cover the deductible if another accident occurs.

3. Search for missed discounts

It's possible to miss a discount when signing up for auto insurance. Or someone's situation could change in a way that makes them eligible for a discount. Here are some of the most common auto insurance discounts offered:

  • College student, away from home
  • Good student
  • Low mileage
  • Senior
  • Military
  • Professional
  • Policy bundling

4. Raise the driver's credit score

Many insurance companies factor in credit score when determining policy rate. If the driver's credit score was low when they first signed up for car insurance, they should take steps to raise it. If a driver is successful in improving their credit score, they can ask the insurance company for a rate review based on the new (higher) score -- and possibly qualify for a lower car insurance rate.

5. Take a driver's education course

Taking a defensive driving course or accident prevention course can cut a driver's premium costs. The amount varies by insurer, but it's a discount worth investigating.

How to avoid higher rates in case of a car accident

Getting in a car accident can be stressful and expensive, even aside from worrying about what will happen to the driver's auto insurance costs. Drivers who are concerned about being hit with an insurance increase following an accident should try to change their policy -- before an accident happens.

Here are a few ways to get a better car insurance policy to protect you from possible rate hikes after a car crash.

Get accident forgiveness coverage

Drivers can often try to add accident forgiveness coverage to their policy. Not every car insurance company offers this. But some insurers automatically apply accident forgiveness after a driver has been accident-free for a specific number of years. Others allow a driver to add accident forgiveness to their standard policy for a small premium increase.

Ask the auto insurance company for coverage options

Along with asking for accident forgiveness coverage, drivers can look for ways to customize the car insurance policy. Different insurance companies have different rules for how they treat accidents; some are more forgiving than others, while some charge higher rates or might even cancel coverage for drivers with too many accidents on their records.

Here are some questions that drivers should ask their auto insurance company:

  • How long do accidents stay on insurance?
  • How much can I save by bundling auto with home and life insurance coverage?
  • Can I lower my rates by raising my credit score?
  • Do speeding tickets affect insurance? If so, by how much?
  • How often will you recalculate my rate?
  • Can I save money by signing up for a telematics insurance (usage-based insurance) plan that rewards safe driving?

Even for drivers that have had a crash recently, or that have endured years of rate hikes, there still might be better options out there for car insurance. Don't assume that every auto insurance company is the same. Different companies price risk differently, and some might offer a better deal -- even to drivers with less-than-perfect driving records. Drivers who shop around for car insurance price quotes might be pleasantly surprised by their choices.

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FAQs

  • Rates will be higher for three to five years, depending on the insurance carrier.

  • Auto insurance companies use these factors to calculate an increase:

    • Previous driving record
    • State where the driver lives
    • Amount of damage
    • Who's at fault

  • Yes, if drivers can find a different insurance company that they would prefer to work with, and that is willing to offer them a policy, they are free to switch car insurance.

  • Yes, coverage can be canceled following an accident. However, an insurance company is unlikely to do this unless the driver had previous infractions or the accident was due to something like driving while intoxicated or reckless driving.

  • It depends on the state where the driver lives, the driver's previous driving record, how much damage the accident caused, and who was at fault.

  • The amount of a car insurance rate increase typically is based on which driver was at fault, where the driver lives, how much the totaled vehicle will cost the insurance company, and the driver's previous driving history.