How Much Does Insurance Go Up After an Accident?

You should file an insurance claim when you can't afford to pay cash for damages or medical bills that your insurance policy will cover. You should pay out of pocket instead of filing an insurance claim if the repairs or medical bills incurred in an accident that you cause will cost less than your deductible.

For example, it might be worth it to pay for a minor fender bender yourself, especially if the accident was your fault or you've filed a claim recently. Your claims history is important because the more claims you make, the more of a risk you are in the eyes of insurance providers. You could see higher premiums, or even have your canceled outright, as a result.

When to Consider Paying Out of Pocket

• You have comprehensive or collision insurance and there is only minor damage to your vehicle.
• Repairs cost less than your insurance policy deductible.
• You have recent claims or tickets on your driving record.

When You Should File an Insurance Claim

• There is major property damage that will cost more than your deductible to repair.
• There are injuries.
• The accident involves other vehicles.
• You have accident forgiveness on your insurance policy.

Keep in mind that if you're in a car accident, you should notify your insurance provider of the incident whether you plan on filing a claim or paying out of pocket yourself. All major insurers require customers to report all accidents, no matter the size.

Also, if you're in an accident that's not your fault, you should file a claim with the at-fault driver's insurance provider so that it pays its portion of any medical bills or property damage you incurred in the accident. How much the at-fault driver's insurance provider will pay out depends on the driver's policy limits and their state.

Geico insurance will go up by about 79% after your first accident resulting in a claim of $750 or more. If this is your second accident in less than three years, your insurance will go up at least twice as much, depending on the total cost of the claim. If you have more than two accidents in a three-year period, you can expect to pay 225% more. These surcharges will be in effect for three years after the claim.

Your rate won't increase if the accident is not your fault and the other driver's insurance pays for your claim, or if the damage is less than $750. Keep in mind that Geico also assigns points for other traffic offenses. A DUI conviction is three points, for example, and a speeding ticket of 20 MPH over the posted limit is one point. Your first accident resulting in a claim of $750 or more also gets one point. Your total number of points determines your final surcharge.

Will my Geico insurance go up after an accident if I...

Wasn't at-fault?

No, if your claim is reimbursed by the other driver or their insurance company, the cost of your insurance will not go up. If you aren't cited by law enforcement and the other driver is, your premium won't be affected, either.

Use my Personal Injury Protection?

If you need PIP to cover your or your passengers' medical bills but don't need to use your liability or collision coverage, your rates won't be affected.

Was involved in a hit and run?

A hit and run will not affect your rates as long as you file a police report with 24 hours.

Hit a deer?

Most comprehensive claims are considered beyond your control and do not count against you. But if you've filed another claim of any kind in the last three years, hitting a deer could raise your rates.

Was hit by flying or falling objects?

If gravel on the highway shatters your windshield or a tree branch lands on your car, it won't increase your premium unless you've had another claim in the last three years.

Geico has two accident forgiveness programs, which waive the surcharge following an at-fault accident. The first works like a loyalty program for safe, long-time customers. To be eligible, you must have been insured by the company and accident-free for at least five years.

The second way to get accident forgiveness is to pay for it as supplemental coverage. Geico's website says you still have to meet certain driving-record requirements to be able to buy accident forgiveness, but the rules and terms vary by state. You must also be 21 or older to qualify.

Ultimately, Geico's policies mean your premiums might not be affected by a single accident if you stick with Geico over time. Since car insurance industry estimates show the average driver files a claim for a car accident about once every 18 years, it's possible loyal customers' premiums could never be affected by an accident with Geico.

Progressive insurance goes up by an average of 101% after an at-fault accident, according to the company. If the accident was not your fault or only your car was involved, you may not see your rates go up at all. If your premiums do go up, it won't be as significant as after an at-fault claim. The amount your rate increases depends on your location, the total cost of the claim, your prior driving history, fault and other factors.

It's possible that Progressive won't raise your rates for your first accident, regardless of fault. The company offers two accident forgiveness programs at no cost to customers. First of all, Progressive won't increase premiums for certain small claims of $500 or less, whether you are a new or long-term customer. Plus, if you've been a policyholder for five years or longer and have been accident-free for three straight years, Progressive will forgive your first accident, no matter the cost.

Progressive automatically enrolls eligible customers into accident forgiveness, but qualifications vary by state. It's best to call Progressive customer service at 1-800-776-4737 to find out the rules where you live. If you already have a policy number, a representative can tell you what benefits you qualify for.

If a car accident is not your fault, your insurance rate could still go up, depending on your state and insurance company. On average, a not-at-fault accident makes insurance costs go up by about 12%, compared to 45% for an at-fault accident.   

Insurance rates can go up after a not-at-fault accident because statistics show that having any accident on your driving record makes you more likely to file a claim in the future. And in some situations, not-at-fault accidents can still cost insurers money.  

California and Oklahoma are the only two states that prohibit insurance companies from raising rates after not-at-fault accidents. In states where it is allowed, the exact amount that your premium will go up depends on your insurance company. As of 2017, for example, Progressive increased premiums by an average of 16.6% after a not-at-fault accident. Meanwhile, Allstate only increased rates by 4.8%, and drivers with State Farm didn't see their rates go up at all.

Situations Where Your Insurance Company Has to Pay

In most cases, your insurance company won't have to pay for a not-at-fault accident since the other driver's policy will cover your expenses. But if you're hit by an uninsured motorist or you're the victim of a hit-and-run, your policy might cover the damages depending on what types of coverage you have. Liability insurance alone wouldn't cover your expenses, but other types including collision and uninsured/underinsured motorist would. And if you live in a no-fault state, your insurance company will have to pay for your medical expenses regardless of who caused the accident. As a result, any cost to your insurer will be taken into consideration when your insurer is re-evaluating your premium.

Although it's frustrating to be charged for an accident that wasn't your fault, the effects on your premium will only be temporary. Accidents usually only stay on your driving record for three years, so if you continue to practice safe driving habits during that time, your rates will eventually go back down.  

Insurance does not go up much after a minor accident, if it goes up at all. In general, car insurance rates rise an average of 12% after a not-at-fault accident and 48% after an at-fault accident, but those figures include both major and minor accidents. The less extensive the damage is, the less likely you are to see your insurance premium go up after a minor accident.

Minor Accidents That Don't Affect Insurance

You likely won't see any increase in your premiums after not-at-fault incidents and accidents that don't cost your insurer a lot of money. For example, if your parked car is hit or if you're the victim of a hit and run, your insurance is unlikely to go up.

Insurance rates are based on risk, however, so you may see an eventual increase for repeated small claims. The more claims you have, the more of a risk you seem for an insurance company.

How Accident Forgiveness Changes the Situation 

Drivers with accident forgiveness 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-driving 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. 

Car insurance goes up by as much as 69% after a claim, on average, depending on the state, the extent of the damage, and the exact cause. For example, while rates go up by an average of 69% after an accident in California, insurers in Delaware only raise premiums by an average of 31%. Additionally, a comprehensive insurance claim raises rates by an average of just 3%, since it covers vehicle damage caused by something out of the policyholder's control, like a natural disaster.

How Much Car Insurance Goes Up After a Claim 

In most cases, a car insurance claim will only affect your rate for 3-5 years. During that time, there are steps that you can take to lower your premium. For example, you can check to see what discounts your insurer offers, like a pay-in-full or defensive driving discount. You should also consider switching insurers to see if you can find a better deal elsewhere.

To learn more, check out WalletHub's guide to car insurance claims.

Yes, you can switch car insurance after an accident, or any time you choose. You don't have to wait until your policy is up for renewal to switch car insurance companies, and you can even change insurers if you have an open claim.

What Happens If You Switch Insurers After an Accident?

There's no penalty for switching car insurance companies after an accident, in particular, but you may face cancellation fees from your current insurance company for stopping your policy early. You're also less likely to save money switching car insurance companies right after you have an accident, as your rate will include your latest mishap on the road. In other words, you can't switch insurance companies to avoid being held accountable for the accident.

Also, keep in mind that if you cause an accident, the insurance provider you had at the time of the accident will still be responsible for handling the claim, even if you cancel their coverage and switch companies. You can't switch insurance providers after an accident to have a new company manage the claim.

What to Do Before Switching Car Insurance Companies

Switching car insurance providers on the same day you have an accident might be viewed as suspicious by some insurance companies, so it's best to wait at least until the claims process begins before switching. You might even want to wait until the process is complete, so you don't have to deal with two car insurance companies simultaneously.

In addition, if you decide to switch car insurance providers, be sure to have your new policy in place before canceling your old policy. It's better to have an overlap of policies for at least a day than it is to have a gap of even one day between auto insurance policies. A gap in your insurance history will be viewed poorly by insurance companies, and it's against the law to drive without adequate insurance coverage.

A car accident stays on your record for insurance for three to five years, depending on the state and insurance company. After that period, an accident no longer appears on a driver's record for insurance purposes and will not affect car insurance premiums directly.

Just remember that even if the record of the accident goes away after three years, it could take as long as five years before a driver is able to once again qualify for good driver discounts. For example, Geico requires drivers to go five consecutive years without an at-fault accident in order to qualify, while drivers with State Farm can requalify for an accident-free discount after three years.

Overall, first-time car accidents increase premiums by an average of 50%, depending on the state and resulting damage. But it's possible that an accident won't affect your rates at all.

For example, hit-and-runs committed against you don't usually affect your insurance costs. And if an accident is a first offense on an otherwise spotless record, your insurance company might offer accident forgiveness, which would prevent your rates from going up. However, not every company offers this perk, and some only offer it as an add-on coverage option.

On the other hand, if you commit a hit and run or cause an accident due to DUI, the accident could stay on your insurance record for up to 10 years or longer. It will also lead to a significant increase in the cost of insurance.

Car insurance goes up by an average of 49% after an at-fault accident, though the exact amount depends on the policyholder's state and insurance company. For example, drivers in Massachusetts see their rates go up by 72% after an at-fault accident, while rates in Rhode Island only go up by 3%.

How Much Insurance Goes Up After an At-Fault Accident by Insurer

In most cases, an at-fault accident will only affect your insurance rate for 3-5 years. During that time, there are steps that you can take to lower your premium. For example, you can check to see what discounts your insurer offers, like a pay-in-full or defensive driving discount. You should also consider switching insurers to see if you can find a better deal elsewhere.

To learn more, check out WalletHub's guide to what affects car insurance premiums.

State Farm insurance rates go up by an average of 59% after an accident. Even though an accident will cause State Farm to raise your car insurance premium when you renew your policy, the added cost will only be temporary. An accident will usually affect your State Farm premium for just 3-5 years.

The exact amount that State Farm premiums go up after an accident depends on a few factors, including who was at fault, how much damage was caused, the policyholder's driving and claims history. In general, at-fault accidents or severe accidents that lead to expensive insurance claims increase rates more than minor or not-at-fault wrecks. Additionally, premiums increase more for drivers who have had previous accidents or moving violations.

To learn more, check out WalletHub's complete review of State Farm car insurance, as well as our guide to how much insurance goes up after an accident.