Car insurance can go up by anywhere from 0% to 70% or more after an accident, according to WalletHub’s research. The exact amount that a driver’s insurance goes up after an accident depends on a few factors, including the driver’s insurance company, the state, the extent of the damage, and who was at fault.
Key Things to Know About Insurance Increases After an Accident
- Car insurance premiums increase by an average of about 50% after an accident.
- Your rate will not increase until you renew your policy.
- AAA, USAA, and Grange offer the cheapest car insurance after an accident.
- A not-at-fault accident still raises your rates by an average of 4%.
- Drivers with accident forgiveness will not see their rates go up after their first accident, though the specific details vary between insurers.
- You can keep your car insurance rates from rising a lot after an accident by shopping for quotes, altering your existing policy, attending traffic school, and practicing good habits on the road.
Cheapest Car Insurance After an Accident
| Company | Cost Before an Accident | Cost After an Accident | Percent Change |
| AAA | $529 per year | $658 per year | 24% |
| USAA | $487 per year | $701 per year | 44% |
| Grange | $566 per year | $704 per year | 24% |
| Geico | $462 per year | $826 per year | 79% |
| Esurance | $645 per year | $1,005 per year | 56% |
| Auto-Owners | $697 per year | $1,015 per year | 46% |
| Mercury | $604 per year | $1,087 per year | 80% |
| Progressive | $549 per year | $1,103 per year | 101% |
| Travelers | $639 per year | $1,103 per year | 73% |
| The Hartford | $767 per year | $1,131 per year | 47% |
Note: Data is representative of an at-fault accident with minimum coverage. Individual rates will vary.
Average Insurance Increase After an Accident by State
Average Car Insurance Rate Increase After an Accident
| State | Dollar Increase | Percent Increase |
|---|---|---|
| Alabama | $289 | 50% |
| Alaska | $194 | 41% |
| Arizona | $385 | 53% |
| Arkansas | $310 | 52% |
| California | $447 | 62% |
| Colorado | $346 | 57% |
| Connecticut | $529 | 49% |
| Delaware | $298 | 32% |
| Florida | $637 | 51% |
| Georgia | $550 | 63% |
| Hawaii | $181 | 42% |
| Idaho | $148 | 40% |
| Illinois | $354 | 60% |
| Indiana | $239 | 57% |
| Iowa | $117 | 40% |
| Kansas | $290 | 51% |
| Kentucky | $464 | 56% |
| Louisiana | $555 | 47% |
| Maine | $175 | 41% |
| Maryland | $531 | 51% |
| Massachusetts | $463 | 72% |
| Michigan | $735 | 57% |
| Minnesota | $341 | 49% |
| Mississippi | $331 | 65% |
| Missouri | $317 | 49% |
| Montana | $221 | 52% |
| Nebraska | $261 | 60% |
| Nevada | $389 | 45% |
| New Hampshire | $263 | 52% |
| New Jersey | $712 | 55% |
| New Mexico | $193 | 39% |
| New York | $698 | 41% |
| North Carolina | $345 | 68% |
| North Dakota | $161 | 42% |
| Ohio | $208 | 53% |
| Oklahoma | $261 | 51% |
| Oregon | $407 | 50% |
| Pennsylvania | $352 | 58% |
| Rhode Island | $28 | 3% |
| South Carolina | $373 | 47% |
| South Dakota | $129 | 42% |
| Tennessee | $256 | 55% |
| Texas | $515 | 67% |
| Utah | $444 | 58% |
| Vermont | $127 | 40% |
| Virginia | $281 | 47% |
| Washington | $336 | 48% |
| West Virginia | $219 | 42% |
| Wisconsin | $191 | 46% |
| Wyoming | $101 | 35% |
Note: Data is representative of an at-fault accident; individual rates will be different.
How Long Does an Accident Affect Your Insurance?
An accident will typically affect your insurance for 3 to 5 years, depending on your insurance company, your state, and the nature of the accident. More serious accidents will likely affect your insurance rates for longer. For instance, an accident with a DUI could affect your insurance rates for more than 10 years.
Similarly, while an at-fault accident usually won’t affect your insurance rates for longer than 3-5 years, the violation itself will likely stay on your driving record for much longer, depending on your state’s laws. Any violation that is on your driving record will typically be checked by potential employers if you apply for a job that involves driving.
Learn more about how long an accident affects your insurance.
How Does a Not-At-Fault Accident Affect Your Insurance?
On average, a not-at-fault accident will cause drivers’ rates to go up by 4%, though it usually depends on the state and insurance company. For example, California and Oklahoma do not allow insurers to raise rates after not-at-fault accidents. Similarly, drivers insured by State Farm don’t see their rates go up at all if their accident was caused by another driver.
Even if you didn’t cause the car accident, your insurance company might still have to pay. If you live in a no-fault state, for instance, your insurer has to pay for your medical expenses no matter who was at fault for the accident. Similarly, if you’re hit by an uninsured motorist, your policy might pay for the damages, depending on what type of coverage you have. Your insurance company will take any such expenses into consideration when recalculating your premium.
Learn more about how a not-at-fault accident affects your insurance.
Tips for Getting Cheap Car Insurance After an Accident
1. Shop around
Insurance companies use different methods to calculate premiums, so quotes for post-accident insurance will differ by provider. It’s a good idea to compare several quotes in search of the best deal.
2. Consider altering your policy
You should always purchase as much car insurance as you can afford. But if an at-fault accident on your record is preventing you from finding affordable insurance, you can consider decreasing the amount of coverage that you have. You can also raise the deductible on your policy, which will give you a lower premium.
3. Take a defensive driving course
Many insurance companies offer discounts if you take an approved defensive or safe driver course. Not only can this lower your rate, but it can help to prevent at-fault accidents in the future.
Additionally, if you received points on your license after causing an accident, you may be able to remove the points by attending traffic school. The accident itself cannot be removed from your record, however. It may continue to affect your insurance rates for the duration of your insurer’s lookback period.
4. Practice safe driving habits
An at-fault accident only stays on your insurance record for 3-5 years. If you avoid any new accidents or moving violations during that time, your rate will eventually go back down.
5. Look into accident forgiveness
Accident forgiveness allows the policyholder to have one at-fault accident within a certain timeframe and not see any premium increases for it. Many insurers offer it as a reward for customer loyalty.
However, if you’ve recently had an at-fault accident and do not already have accident forgiveness, you may be able to switch to a different insurer and have them forgive your accident in exchange for your business. If they won’t forgive the accident for free, they may still allow you into an inexpensive accident forgiveness program instead.
Learn more tips for getting cheap car insurance after an accident.
Video: How Much Does Car Insurance Go Up After Accident?
Ask the Experts
To gain more insight about this, WalletHub posed the following questions to a panel of experts. Click on the experts below to view their bios and answers.
1. What is the best way to keep your car insurance premium from going up after an accident?
2. Why do some insurance companies raise rates more than others after an accident?
Ask the Experts
Ph.D., Associate Teaching Professor, Finance, Robert J. Trulaske, Sr. College of Business - University of Missouri
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Ph.D., Professor, Department of Economics and Finance - University of Louisiana at Lafayette
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Ph.D., ARM, CBCP, Director of Cybersecurity & Risk Management Program, Assistant Professor of Practice - University of Texas at Dallas Naveen Jindal School of Management
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Ph.D. MBA, MSc. IPE, MA., BBA, Professor of Economics & Chair, Business/Accounting & Economics Department, Business & Industry Division - Tarrant County College
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Ph.D., Professor of Finance, School of Business - University of Indianapolis
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Associate Professor of Practice, Department of Risk, Insurance, and Healthcare Management and Associate Director, Actuarial Science Program - Temple University, Fox School of Business
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