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
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:
- Shop around to see if you can get a better rate with another company.
To learn more, check out WalletHub’s guide on how accidents affect car insurance premiums.
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