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The cost of car insurance goes up by an average of 48% after your first at-fault accident, or around $348 per year. The exact amount that your insurance premium will increase after your first accident depends on your insurance company, what state you’re in, the extent of the damage, and the circumstances.
Not-at-fault accidents will raise your rates by an average of 12%, since filing a claim still costs the insurance company money. However, California and Oklahoma forbid insurance companies from raising rates after a not-at-fault accident.
Average Premium Increase After an Accident by Company
| Company | Average Increase |
| 18% | |
| 57% | |
| 66% | |
| 68% | |
| 69% | |
| 71% | |
| 78% | |
| 82% | |
| 84% | |
| 121% |
Note: Rate increases reflect at-fault accidents
How Accident Forgiveness Changes the Situation
Things are a bit different for drivers with accident forgiveness, as they are protected from a premium increase after a single at-fault car accident within a certain time period. Depending on the insurer, drivers can purchase accident forgiveness or earn it as a reward for safe driving and company loyalty.
What To Do If Your Rate Increases After an Accident
Insurance companies will only raise your premiums when you renew your policy. If you find that the increase is too much for your budget, consider the following:
- Look into discounts your insurer may offer, such as discounts for taking a defensive-driver course.
- Shop around to see if you can get a better rate with another company.
- Avoid any new accidents or moving violations, since accidents only temporarily affect your rates.
To learn more, check out WalletHub’s guide on how accidents affect car insurance premiums.
People also ask
How can I lower my car insurance after an accident?
One way you can lower your car insurance after an accident is by reducing the amount of coverage that you pay for. Another way to lower your premium is by comparing quotes from multiple insurers and finding a cheaper one. You can also take a defensive driving course and search for additional discounts from your current insurance provider. On average, an at-fault accident raises premiums by about 50%, and the increased cost lasts 3-5 years.
How...
read full answer by WalletHub, Financial CompanyHow does accident forgiveness work?
Accident forgiveness works by preventing insurance rates from increasing after a driver’s first at-fault accident in a certain period of time. Most insurers offer accident forgiveness as a free add-on after 3-5 years of accident-free driving or as a purchased add-on.
With some insurers, accident forgiveness may allow drivers to retain good driving discounts that would ordinarily end after an at-fault accident. Without accident forgiveness, one at-fault accident could raise premiums by as much...
read full answer by WalletHub, Financial CompanyDid we answer your question?
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