How does your insurance cost change after an accident?
No one ever expects to get into a car accident, but an at-fault accident can affect your auto insurance rates for years. On average, premiums rise by 42 percent after an at-fault accident, but there are ways you can decrease the effects of an accident on your premium.
Of course, since auto insurance rates are based on driving history, expect to pay more for car insurance if you have a traffic violation. If you were involved in an accident that you caused, expect to pay even more for car insurance. Still, you’ll be able to find everything from liability coverage only to full coverage car insurance from the following providers. To find out your exact premium, get an insurance quote today.
When you cause an accident, your insurer will see you as having a higher risk of getting into another accident and therefore costing it even more money. So, to protect itself, the company will increase your rates1.
|Company||Average annual premium before an accident||Average annual premium after an at-fault accident||Average percentage increase|
Erie Insurance will increase your rate the least after an accident, on average.
An accident could affect your rates for three years.
Check your state laws to see how long an accident stays on your driving record and thus increases your car insurance rates.
States have different laws on how to calculate who is at fault for an accident. In certain states, your rates may increase slightly even if you didn’t cause the accident.
However, these major insurers offer extra coverage called accident forgiveness3:
If you qualify and add this coverage to your policy, your premium won’t increase after your first accident. (Note: Accident forgiveness is not available from every insurance company, and it is not available for California residents.)
Drivers who are much higher risk and have caused more than one accident still have options for auto insurance. The standard auto insurers may choose to not renew your policy, depending on your risk profile, but there are other ways to find coverage.
If you cause an auto accident, you can expect your premium to rise, but you can minimize the increase. Work with your insurer to adjust your policy, find discounts to apply to your policy, or shop around with different insurers. Following these steps will make sure that, after an accident, you’re getting the best coverage you can for the lowest price.
Do auto insurance premiums go up after a claim? III. (2022).
How is fault determined after a car accident? Allstate. (2020, May).
What is Accident Forgiveness? Liberty Mutual. (2022).
Plan Sites. AIPSO. (2022).