How Much Your Car Insurance Rate Rises After an Accident

Your rate increase depends on your insurer, your state, and whether you were at fault

There is no single number. A fender-bender might raise your premium by 10 percent with one company and 25 percent with another. An at-fault accident in California typically costs less in rate increase than the same accident in Michigan, because states set different rules about how much insurers can penalize you. Your driving history, the type of accident, and whether the other driver sued all matter too.

The most common outcome: if you caused the accident, expect your rate to go up somewhere between 15 and 40 percent at renewal. If you were not at fault, many insurers will not raise your rate at all — but some will, and a few states allow it. The increase usually lasts three to five years, then drops off your record.

The only way to know your actual number is to contact your insurer or get a quote from them after the accident is reported. They will tell you the new premium before the change takes effect.

Key Takeaways

• An at-fault accident typically raises your premium 15 to 40 percent, but the exact amount varies by insurer and state.
• Not-at-fault accidents usually do not raise your rate, though some insurers and states allow small increases.
• The rate increase stays on your record for three to five years in most cases, then expires.
• Your insurer must tell you the new premium before charging it, so you can see the exact dollar impact.
• Shopping for a new quote from a different insurer after an accident sometimes costs less than staying with your current company.

Why insurers raise rates after an accident

Insurance companies use accidents as a signal that you are statistically more likely to have another one soon. They are not punishing you — they are adjusting the risk. Someone who has had one accident in the past three years files claims more often than someone with a clean record, so the insurer charges more to cover the higher expected cost.

The size of the increase reflects how serious the accident was. A minor collision with low repair costs raises your rate less than a major crash. An accident where you hit a parked car or caused injury to another person typically costs more in premium increase than a fender-bender in a parking lot.

How fault affects your rate

If you were at fault — meaning the accident report or insurance company information says you caused it — your rate will almost certainly go up. The increase is usually the largest category of rate hike.

If you were not at fault, the other driver's insurer should pay for the damage, and your own insurer should not raise your rate. However, some insurers do raise rates for not-at-fault accidents, especially if you file a claim under your own collision coverage instead of letting the other insurer pay. A few states allow this; others prohibit it. Check your state's insurance department website or call your insurer to learn the rule where you live.

If the accident is still being investigated and fault has not been determined, your insurer may hold off on a rate change until the information is final.

How long the increase lasts

Most insurers keep the accident on your record for three to five years. After that time passes, the accident stops affecting your rate, even though it may still show up in your driving history. Some insurers remove it sooner if you have a clean record after the accident.

A few states have rules about how long an insurer can use an accident to raise rates. California, for example, limits the impact to three years. Other states allow five or more. Your insurer can tell you the exact timeline for your policy.

What happens when you renew your policy

Your insurer does not usually raise your rate mid-policy. Instead, the increase takes effect at your next renewal date — typically six months or one year after the accident, depending on your policy term. You will receive a new quote before the renewal date, showing the new premium.

At that point, you have a choice: accept the new rate, or shop around. Some insurers offer accident forgiveness programs that waive the rate increase if you have been a customer for a certain number of years (often three to five) and have no prior accidents. Ask your insurer whether you may have access to.

Shopping for a new insurer after an accident

You are not locked into your current insurer's rate increase. Getting quotes from other companies is worth doing, because different insurers weight accidents differently. One company might raise your rate 30 percent; another might raise it 15 percent for the same accident. You might also find that a company with a lower base rate ends up cheaper overall, even with the accident surcharge.

When you get a quote, tell the insurer about the accident upfront. They will factor it in. Do not wait to disclose it after you switch — that can lead to cancellation or a claim denial if another accident happens before they discover the first one.

Switching insurers does not erase the accident from your record, but it may reduce what you pay for it. The accident still appears on your driving history, and the new insurer will see it.

Accidents that cost more in rate increases

Not all accidents raise your rate the same amount. Insurers typically charge more for accidents involving injury, multiple vehicles, or high repair costs. An accident where you hit a pedestrian or caused someone to go to the hospital will usually result in a larger rate increase than a single-vehicle collision with no injury.

Accidents involving traffic violations — running a red light, speeding, or driving under the influence — also trigger larger increases. If the police cited you at the scene, the insurer will see that citation and factor it in.

Frequently Asked Questions

Will my insurance go up if the other driver was at fault?

Usually no. If the other driver's insurer accepts fault and pays your claim, your rate should not increase. However, some insurers do raise rates for not-at-fault accidents, and a few states allow it. If you file a claim under your own collision coverage instead of waiting for the other insurer to pay, some companies treat it differently. Call your insurer to ask about their specific policy.

Can I get accident forgiveness?

Many insurers offer accident forgiveness programs that waive the rate increase for your first accident if you have been a customer for a set period — usually three to five years — and have no prior accidents. You typically do not have to do anything; the insurer applies it automatically if you may have access to. Ask your agent whether you are may be able to access.

How much will my rate go up?

There is no standard amount. Increases typically range from 15 to 40 percent for at-fault accidents, but your insurer's specific number depends on their underwriting rules, your state, and the accident details. The only way to know is to contact your insurer or get a quote from them after reporting the accident.

Does a minor accident cost less than a major one?

Yes. Insurers charge more for accidents with high repair costs, injury, or multiple vehicles involved. A minor fender-bender usually results in a smaller rate increase than a serious crash. However, even minor accidents can raise your rate if you were at fault.

What if I do not report the accident to my insurer?

Do not skip reporting. If you file a claim later and the insurer discovers you did not report the accident when it happened, they may deny the claim or cancel your policy. Report it right away, even if you think the damage is minor or you plan to pay for repairs yourself.