Car accident rates have been on the increase and experts point to everything from more distracted driving to rising temperatures caused by climate change.
There were nearly 6 million car accidents in the U.S. in 2022, according to the National Highway Traffic Safety Administration, the most recent year for which data is available.
After the initial shock wears off, the biggest surprise after a collision can be how much your insurance premiums go up — even if you weren’t at fault.
Your driving record is only one factor in determining how much you pay, but even a single accident can have a major impact.
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How much does car insurance go up after an accident?
The amount your insurance goes up after an accident depends on several factors including your insurance company, the state you live in, the car you drive, the severity of the collision and whether the accident was your fault.
“Generally speaking, your rate will go up 10% or less if you’re not at fault,” said Brian Moody, executive editor at Kelley’s Blue Book. “If you are at fault, it’s closer to 45%.”
Best car insurance after an at-fault accident
Drivers found liable for an accident will see their rates go up, no matter which insurer they use. But the sting is definitely less with some companies than with others.
Best for affordability: Geico
Geico Auto Insurance
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Cost
The best way to estimate your costs is to request a quote
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App available
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Policy highlights
Geico coverage and services are available in all 50 states and the District of Columbia and there are 16 different types of discounts available. In addition to the standard coverage options, Geico offers various optional add-ons, such as emergency roadside assistance, rental car reimbursement and mechanical breakdown insurance.
Who’s this for? Among major insurers available, Geico has some of the lowest average annual premiums after an at-fault accident.
Standout benefit: Geico also offers accident forgiveness, which means your insurance rate won’t go up as a result of your first at-fault accident.
Best for new car owners: Nationwide
Nationwide Auto Insurance
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Cost
The best way to estimate your costs is to request a quote
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App available
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Policy highlights
Nationwide offers near-nationwide availability and personalized services, such as On Your Side® Review, a free annual insurance evaluation to ensure you are adequately protected and are taking advantage of any discounts available to you.
Who’s this for? Nationwide offers gap insurance on cars that are up to six years old, which is more generous than many competitors. Gap insurance covers some or all of the difference between the amount your insurer pays if your car is totaled and any remaining balance on your car loan or lease.
Standout benefit: Nationwide also offers new car replacement coverage, which can replace your vehicle with the same make and model if it’s a total loss.
Best for seniors: Erie
Erie Auto Insurance
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Cost
The best way to estimate your costs is to request a quote
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App available
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Policy highlights
Erie Insurance offers auto insurance for many different situations and affordable premiums. Several different coverages allow you to customize your policy.
Pros
- Affordable premiums
- Below-average NAIC complaint index
- High customer satisfaction scores from J.D. Power
- Quotes available online
Cons
- Only available in 12 states and Washington, D.C.
- Limited online and app capabilities
- Claim filing is not available online
Who’s this for? Erie’s rates for high-risk drivers are hundreds of dollars less than the national average. Drivers who store their vehicle for at least 90 days can qualify for a reduced usage discount — a boon to seniors who are snowbirds.
Standout benefits: The Erie Rate Lock feature can keep your rates from going up — even after an accident — until you make changes to your policy.
How long does an accident affect your car insurance rates?
On average, a car accident will remain on your record for three to five years, according to Moody. The exact amount varies by state, however: It’s one year in Pennsylvania, while in Massachusetts, it’s six.
Insurance companies can review your driving record by checking your Motor Vehicle Report. It’s generated by your state’s Department of Motor Vehicles and lists any moving violations, traffic tickets and accidents.
If you made a claim for repairs stemming from an accident, it would appear on your CLUE report.
Will my rate go up even if the accident wasn’t my fault?
Any accident that is reported to either the police or your insurance company could result in a premium increase, according to Mark Friedlander, communications director with the Insurance Information Institute.
Insurers assess risk, not blame. And, statistically, the more crashes you’re in, the more likely you are to have another in the future.
How to prevent an increase after an accident
Accidents happen — but there are some strategies to keep them from bumping up your premiums.
Pay out of pocket
If you’re involved in a one-car accident or a minor fender-bender with another driver, you may want to pay for repairs out of pocket rather than file a claim.
This may keep your rates from increasing, but if your provider finds out about it later, it could result in your policy being invalidated. In some cases, you don’t have a choice: In New York, for example, an accident report must be filed with the Department of Motor Vehicles if damages exceed $1,000 or if anyone is injured.
Accident forgiveness
Many auto insurance companies offer accident forgiveness, however, either as part of a standard policy or as a separate rider you can purchase. This prevents insurance rates from going up after an accident.
“They will typically forgive your first at-fault accident, so your rate won’t increase because of the incident,” said Friedlander.
Each insurer handles accident forgiveness differently: With Progressive, a small claim (under $500) won’t raise your rates in most states. If you remain accident-free for five years, even a larger accident can be forgiven.
Progressive Auto Insurance
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Cost
The best way to estimate your costs is to request a quote
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App available
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Policy highlights
Progressive offers a number of lines of insurance to allow for bundling, and convenient tools to help you keep your coverage in your budget.
You can also purchase additional accident forgiveness benefits when you start or renew your Progressive auto policy and have one eligible accident forgiven per policy period.
Some states, like California, don’t allow insurers to offer accident forgiveness.
How can I lower my insurance rates after an accident?
If your rates do go up after a crash, there are several ways to bring them down.
Make changes to your coverage
The first thing to do if you’re hit with an accident surcharge is to see where else in your coverage you can make cuts. If your state doesn’t require personal injury protection or medical payment coverage, you may decide to drop them.
If you have an older car, especially one that is fully paid for, you could consider dropping collision or comprehensive insurance. USAA has the best rates for liability insurance, but is only available to veterans and military families. Among national carriers, State Farm has some of the cheapest minimum coverage policies.
USAA Auto Insurance
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Cost
The best way to estimate your costs is to request a quote
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App available
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Policy highlights
USAA’s auto insurance is limited to service members, veterans and their families but it is available in all 50 states and Washington D.C. In addition to low rates and outstanding customer service, it has coverage options for unique circumstances, such as active deployment.
State Farm Auto Insurance
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Cost
The best way to estimate your costs is to request a quote
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App available
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Policy highlights
State Farm is one of the largest auto insurers in the U.S. based on market share. It has an excellent reputation for customer satisfaction and offers discounts for safe driving and young drivers.
Another option is raising your deductible, which usually lowers your monthly premium: Upping your deductible from $200 to $500 could reduce the cost of full coverage by up to 30%, according to the Insurance Information Institute, while upping it to $1,000 could save you 40% or more.
Shop for new insurance
“The market is so competitive right now, you don’t need to be stuck with your current insurer if they hit you with a high accident surcharge,” said Friedlander. “You’ll get different quotes from different companies, no matter what your driving record is like. It doesn’t cost you anything — shopping for insurance is free.”
Look for discounts
“If someone has an accident surcharge, they should try to take advantage of as many discounts as possible,” said Friedlander. “There are a lot of different programs you can qualify for [and] you can get significant savings.”
Farmers has 23 discounts available to auto insurance customers, the most of any provider we’ve reviewed. Not all discounts are available in every state, though, and some can’t be combined.
Farmers Auto Insurance
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Cost
The best way to estimate your costs is to request a quote
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App available
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Policy highlights
Farmers Insurance offers 23 discounts for auto insurance and issues policies in every state except Alaska, Delaware, Hawaii, Maine, New Hampshire, Rhode Island, Vermont, West Virginia and Washington, D.C.
Common discounts include:
- Bundling discount: Getting your auto insurance from the same company that handles your homeowners, life or other policy can save you more than 20%, depending on the company.
- Safety device discount: Airbags, anti-lock brakes, automatic seatbelts, daytime running lights and other protective equipment can save you as much as 23% with Geico.
- Defensive driver discount: If you’ve been in an accident, a driver’s ed course is a good way to prevent another one. Some companies offer drivers 55 and older a discount for completing an approved class.
- Paperless billing: Going online is an easy way to save on insurance.
Improve your credit
Actuarial studies suggest that how people manage their finances is a good indicator of how likely they are to file an insurance claim. So in most states, insurance companies use your credit history to determine your rates. (California, Hawaii, Maryland, Massachusetts, Michigan, Nevada, Oregon and Utah prohibit or restrict the use of credit-based insurance scores.)
Paying credit card bills and other debts on time and in full and reducing the amount of credit you’re using are simple ways to improve your score and lower your premiums.
Experian Boost™ is a free service that reports things that wouldn’t normally be seen by credit reporting agencies — like rent, phone and subscription service payments. According to the company, users whose scores improve see their FICO score go up an average of 13 points.
Experian Boost™
On Experian’s secure site
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Cost
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Average credit score increase
13 points, though results vary
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Credit report affected
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Credit scoring model used
Results will vary. See website for details.
Buy a different car
After an accident, trading your vehicle for a less flashy ride could lower your rates.
“Insurers base your premiums on how much it costs to repair your car,” says Moody. “Even if your insurance has gone up due to an accident, your overall rate should be lower because the insurance company’s risk has been minimized.”
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FAQs
How much does car insurance go up after an accident?
How much your rates increase depends on your age, driving history, where you live and other factors.
How long does an accident stay on your driving record?
Insurance companies generally only look at the past three to five years, though your state may keep a record of your driving for considerably longer. In New York, for example, an accident involving intoxicated driving can stay on your record permanently.
What is accident forgiveness?
Many leading insurance companies will let you have one accident without raising your premiums. You may need to go a certain number of years without a crash to earn accident forgiveness, or there may be a dollar amount maximum for damages in order for the incident to be “forgiven.”
Will my insurance go up if the accident wasn’t my fault?
A not-at-fault accident could cause your rates to increase, though not as much as if you were responsible. Factors include where you live, the kind of insurance you have, the extent of the damage and if the other driver was fully insured. Some states bar insurers from hiking rates following a not-at-fault accident.
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*Results may vary. Some may not see improved scores or approval odds. Not all lenders use Experian credit files, and not all lenders use scores impacted by Experian Boost.
Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.
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