How Much Does Insurance Go Up After an Accident?

Your rates may increase by hundreds of dollars. Shop around for cheap car insurance after an accident.

According to TrustedInsurance analysis, causing an accident can increase your car insurance rates by up to 51% per year on average.

However, switching to the cheapest insurer in your state may result in lower rates.

How an accident affects your car insurance rates

On average, an accident raises your car insurance rates for three to five years, though this varies by state and insurance provider. Even if it was a minor accident, insurers will almost always raise your rates because they perceive you as a higher risk.

TrustedInsurance compared average car insurance rates nationwide for 35-year-old drivers with a recent at-fault crash to those with no recent accidents, while keeping all other factors constant. We used full coverage insurance policies on a 2019 Toyota Camry and a hypothetical accident with $10,000 in property damage and no injuries.

Our analysis found that:

• A driver who is at fault in an accident pays $832 more per year on average than a driver who has no traffic violations.
• In 44 states and Washington, D.C., average annual rates for drivers who had recently caused an accident were more than $500 higher than for those who had not.
• After an at-fault accident, average rates increased by at least 50% in 18 states.
• After an at-fault accident, average rates in California, Florida, Louisiana, and Texas increased by more than $1,200 per year.

These, however, are based on average rates. Your rate will vary depending on factors such as your age, location, and insurer.

Cheap car insurance after an accident by company

Car insurance companies have widely disparate views on how much to raise rates in the aftermath of a collision. In some states, according to our research, a few companies did not charge more after a minor accident.

At the other end of the spectrum, we discovered several companies with rates that were more than twice as high for a driver who'd been in an accident as for an identical driver who hadn't. In a couple of cases, the average annual rate was more than $2,000 higher after an at-fault accident.

That is why, in order to obtain cheap car insurance after an accident, it is critical to compare car insurance rates from various companies.

The four largest car insurance companies in the United States, State Farm, Geico, Progressive, and Allstate, account for more than half of the auto insurance market. USAA, the fifth-largest auto insurance provider, is only available to active military members, veterans, and their families.

We looked at average rates across 45 states and Washington, D.C., where we have rates for all four of the largest insurers, to see how the largest insurers price policies after at-fault accidents.

State Farm had the lowest average rates for both drivers who had caused an accident and those who had not, as well as the smallest percentage increase in rates between drivers with a clean record and those who had a recent crash.

Average rates from the biggest auto insurers after an at-fault crash

USAA frequently has some of the lowest rates we found for drivers who qualify, both before and after an accident. However, once a driver has caused an accident, USAA is no longer the cheapest option. In Alaska, Kentucky, Mississippi, North Dakota, and Wisconsin, for example, USAA is the cheapest for drivers with a clean record, but other companies offer the best rates for drivers who have been in an accident.

So, whether you're insured with USAA or another company, comparing car insurance rates after an accident is a good idea.

Cheap car insurance after an accident by state

Do you want to know which companies are most likely to provide cheap car insurance after a car accident? Find your state below to see the average cheapest car insurance rates after an accident in your area.

It’s possible to get a lower rate after an accident

Shopping around after an accident is the best way to ensure you get the best deal, and our analysis demonstrates why:

• Looking for the cheapest car insurance after a collision could save you a lot of money. According to our analysis, shopping for the lowest possible rate after a crash could save you more than $1,350 per year, depending on your state.
• No single car insurance company is cheapest for everyone. After an accident, 23 different insurers tied for the cheapest option across all 50 states and Washington, D.C.
• Before an accident, the cheapest insurer may not be the cheapest afterward. In roughly half of the states we looked at, some drivers who were insured with the cheapest company available would need to switch insurers after an accident in order to continue receiving the lowest possible rates.
• Big-name insurance companies aren't always the most affordable. Despite the fact that the nation's ten largest auto insurance companies account for nearly three-quarters of the car insurance market, smaller companies returned the lowest rates after an accident in 22 states and Washington, D.C. For example, a state's Farm Bureau insurance had the lowest rates after an at-fault crash in three states. Some of the smaller insurers are only available in a few states.

How to find cheap car insurance after an accident

Shopping around is the best way to find the best deal, but there are other ways to ensure you get the best deal. You may be able to reduce your current policy's rates by:

• Raising your deductible, which is the amount deducted from a potential comprehensive or collision insurance claim check. This will result in a higher out-of-pocket cost for repairing your own car if you are involved in an accident in the future.
• Adding discounts to your policy could help offset the rate increase caused by the accident. Check with your insurer or agent to see if there are any more available.
• Improving your credit score. While improving credit is a long-term strategy, a clean credit report will almost certainly result in a lower car insurance rate in most states.

What if the accident wasn't your fault?

Even if you were not at fault in an accident, you may see an increase in your auto insurance rate. According to a Consumer Federation of America study, some companies raise rates by 10% or more for not-at-fault accidents.

Everyone involved in an accident in the 12 no-fault states files a claim with their own insurer for injuries. As a result, residents of those states are more likely to see rate increases following an accident, regardless of who is at fault.

If you have accident forgiveness on your policy and this is your first accident, your rate is unlikely to increase. In addition, in a few states, such as Oklahoma and California, insurers are not allowed to raise your rates if the accident was not your fault. Some companies, such as USAA, even state that they will not raise your rates if you are not at fault in an accident.

However, whether or not the accident was your fault, it's always a good idea to compare car insurance quotes to ensure you're getting the best deal.

Alternative car insurance for high-risk drivers

You may be classified as a high-risk driver if you have multiple accidents or other serious marks on your record. Because they are considered risky to insure, high-risk drivers have a more difficult time finding coverage.

If no one is willing to sell you a policy, you may need to look into a state-run assigned risk plan. Locate your state in the directory of the Automobile Insurance Plan Service Office, an industry organization, or ask your auto insurance agent for assistance. This is referred to as a "high-risk insurance pool," in which the state assigns you an insurer.