A car accident might only last a few moments, but the financial aftermath can stick with you for years. If you have a good driving record and cause an accident, brace yourself: The national average rate increase is 45% after an accident with property damage, and 47% for causing an accident that results in injuries, according to a Forbes Advisor analysis.

 

How Does a Car Accident Affect Insurance?

The car liability insurance portion of your policy covers property damage or injury that you cause to someone else. When a claim is made against your liability insurance, this could result in a “surcharge,” which is the actual rate increase after a chargeable car accident.

The surcharge will start when you renew your policy (an insurance company can’t surcharge you in the middle of a policy period). You can change insurance companies, but the new one will review your claims history and driving record, so it will know about the incident and calculate your rate accordingly.

Car Insurance Rate Increases When You Cause a Crash

Forbes Advisor analyzed average rates from 10 large auto insurance companies for at-fault accidents that resulted in property damage or injuries.

  • State Farm had the lowest average rate hike (21%) for at-fault accidents with only property damage and Geico had the highest (73%), on average.
  • USAA’s average rate increase for drivers who cause a property damage accident is 40%, but USAA still had the cheapest total cost at $1,600 a year. Note that USAA only sells policies to active and retired military members and their immediate families.
  •  Allstate was the most expensive for drivers who caused a property damage accident, with an average annual rate of $3,103.

Car Insurance Rate Increases by Company After an Accident with Property Damage

Company Average annual rates for a good driver Average annual rates after an at-fault property damage accident Average rate increase after an at-fault accident with property damage
USAA $1,141 $1,600 40%
State Farm $1,402 $1,691 21%
Erie $1,419 $1,898 34%
Travelers $1,435 $1,918 34%
Geico $1,182 $2,040 73%
Auto-Owners $1,532 $2,106 37%
Nationwide $1,540 $2,360 53%
Farmers $2,124 $2,998 41%
Progressive $1,892 $3,012 59%
Allstate $2,022 $3,103 53%
For each company we calculated the average rate increase nationwide after a speeding ticket for drivers with coverage of 100/300/100, collision and comprehensive coverage, and uninsured motorist coverage. Source: Quadrant Information Services.

Car insurance rates are slightly higher after an at-fault accident with injuries compared to a property damage accident, among the companies we analyzed. We found:

  • Average rate increases ranged from 22% (State Farm) to 77% (Geico) for drivers who caused an accident resulting in injuries.
  • USAA had a 41% average increase but still the cheapest overall rate at $1,613 a year. After USAA, State Farm had the cheapest average rate.
  • Allstate again was the most expensive, with an average rate of $3,133 a year.

Car Insurance Rate Increases by Company After an Accident with Injury

Company Average annual rates for a good driver Average annual rates after at-fault accident with injuries Average rate increase after at-fault accident with injuries
USAA $1,141 $1,613 41%
State Farm $1,402 $1,713 22%
Erie $1,419 $1,898 34%
Travelers $1,435 $2,000 39%
Geico $1,182 $2,097 77%
Auto-Owners $1,532 $2,106 37%
Nationwide $1,540 $2,458 60%
Progressive $1,892 $2,975 57%
Farmers $2,124 $3,049 44%
Allstate $2,022 $3,133 55%
We averaged the rate increase in each state among large insurers for drivers with liability coverage of $100,000 bodily injury per person, $300,000 bodily injury per accident and $100,000 for property damage (100/300/100), and collision and comprehensive insurance. Source: Quadrant Information Services

These comparisons show how essential it is to shop around for car insurance rates if you have caused an accident. The surcharge increase is not as important as the total premium you’ll pay, so keep your eye on that amount.

Car Insurance Rate Increases by State After an Accident

The average auto insurance rate increase for drivers who cause an accident varies from state to state. That’s because state laws regulating auto insurance rates vary across the country.

Our analysis found that:

  • Drivers in Wyoming (31% increase) get the lowest average increase after both property damage and injury accidents.
  • North Carolina drivers (79% increase) get socked with the highest average increase for a property damage accident.
  • California drivers (97% increase) suffer the highest increase for causing an accident with injuries.

State Average insurance rate increase after an at-fault accident with property damage Average insurance rate increase after an at-fault accident with injuries
Alabama https://www.forbes.com/advisor/car-insurance/state/best-cheap-car-insurance-alabama/ 44% 43%
Alaska https://www.forbes.com/advisor/car-insurance/state/alaska/ 46% 53%
Arizona https://www.forbes.com/advisor/car-insurance/state/best-cheap-car-insurance-arizona/ 47% 48%
Arkansas https://www.forbes.com/advisor/car-insurance/state/arkansas/ 47% 48%
California https://www.forbes.com/advisor/car-insurance/state/best-cheap-car-insurance-california/ 72% 97%
Colorado https://www.forbes.com/advisor/car-insurance/state/best-cheap-car-insurance-colorado/ 35% 33%
Connecticut https://www.forbes.com/advisor/car-insurance/state/best-cheap-car-insurance-connecticut/ 51% 52%
Delaware https://www.forbes.com/advisor/car-insurance/state/delaware/ 34% 34%
Florida https://www.forbes.com/advisor/car-insurance/state/best-cheap-car-insurance-florida/ 38% 39%
Georgia https://www.forbes.com/advisor/car-insurance/state/best-cheap-car-insurance-georgia/ 47% 47%
Hawaii https://www.forbes.com/advisor/car-insurance/state/hawaii/ 37% 37%
Idaho https://www.forbes.com/advisor/car-insurance/state/idaho/ 37% 37%
Illinois https://www.forbes.com/advisor/car-insurance/state/best-cheap-car-insurance-illinois/ 49% 49%
Indiana https://www.forbes.com/advisor/car-insurance/state/indiana/ 48% 48%
Iowa https://www.forbes.com/advisor/car-insurance/state/iowa/ 45% 47%
Kansas https://www.forbes.com/advisor/car-insurance/state/best-cheap-car-insurance-kansas/ 41% 41%
Kentucky https://www.forbes.com/advisor/car-insurance/state/best-cheap-car-insurance-kentucky/ 53% 53%
Louisiana https://www.forbes.com/advisor/car-insurance/state/best-cheap-car-insurance-louisiana/ 48% 48%
Maine https://www.forbes.com/advisor/car-insurance/state/best-cheap-car-insurance-maine/ 40% 41%
Maryland https://www.forbes.com/advisor/car-insurance/state/best-cheap-car-insurance-maryland/ 52% 52%
Massachusetts https://www.forbes.com/advisor/car-insurance/state/best-cheap-car-insurance-massachusetts/ 67% 67%
Michigan https://www.forbes.com/advisor/car-insurance/state/best-cheap-car-insurance-michigan/ 45% 45%
Minnesota https://www.forbes.com/advisor/car-insurance/state/best-cheap-car-insurance-minnesota/ 41% 42%
Mississippi https://www.forbes.com/advisor/car-insurance/state/best-cheap-car-insurance-mississippi/ 46% 47%
Missouri https://www.forbes.com/advisor/car-insurance/state/best-cheap-car-insurance-missouri/ 36% 37%
Montana https://www.forbes.com/advisor/car-insurance/state/best-cheap-car-insurance-montana/ 41% 41%
Nebraska https://www.forbes.com/advisor/car-insurance/state/best-cheap-car-insurance-nebraska/ 48% 48%
Nevada https://www.forbes.com/advisor/car-insurance/state/best-cheap-car-insurance-nevada/ 43% 44%
New Hampshire https://www.forbes.com/advisor/car-insurance/state/best-cheap-car-insurance-new-hampshire/ 55% 55%
New Jersey https://www.forbes.com/advisor/car-insurance/state/best-cheap-car-insurance-new-jersey/ 42% 43%
New Mexico https://www.forbes.com/advisor/car-insurance/state/new-mexico/ 37% 37%
New York https://www.forbes.com/advisor/car-insurance/state/best-cheap-car-insurance-new-york/ 40% 40%
North Carolina https://www.forbes.com/advisor/car-insurance/state/best-cheap-car-insurance-north-carolina/ 79% 90%
North Dakota https://www.forbes.com/advisor/car-insurance/state/best-cheap-car-insurance-north-dakota/ 39% 39%
Ohio https://www.forbes.com/advisor/car-insurance/state/best-cheap-car-insurance-ohio/ 45% 45%
Oklahoma https://www.forbes.com/advisor/car-insurance/state/best-cheap-car-insurance-oklahoma/ 44% 44%
Oregon https://www.forbes.com/advisor/car-insurance/state/best-cheap-car-insurance-oregon/ 42% 43%
Pennsylvania https://www.forbes.com/advisor/car-insurance/state/best-cheap-car-insurance-pennsylvania/ 47% 51%
Rhode Island https://www.forbes.com/advisor/car-insurance/state/rhode-island/ 55% 45%
South Carolina https://www.forbes.com/advisor/car-insurance/state/best-cheap-car-insurance-south-carolina/ 39% 39%
South Dakota https://www.forbes.com/advisor/car-insurance/state/best-cheap-car-insurance-south-dakota/ 42% 42%
Tennessee https://www.forbes.com/advisor/car-insurance/state/best-cheap-car-insurance-tennessee/ 44% 45%
Texas https://www.forbes.com/advisor/car-insurance/state/best-cheap-car-insurance-texas/ 54% 54%
Utah https://www.forbes.com/advisor/car-insurance/state/best-cheap-car-insurance-utah/ 44% 44%
Vermont https://www.forbes.com/advisor/car-insurance/state/best-cheap-car-insurance-vermont/ 47% 47%
Virginia https://www.forbes.com/advisor/car-insurance/state/best-cheap-car-insurance-virginia/ 45% 45%
Washington https://www.forbes.com/advisor/car-insurance/state/best-cheap-car-insurance-washington/ 36% 37%
West Virginia https://www.forbes.com/advisor/car-insurance/state/west-virginia/ 41% 41%
Wisconsin https://www.forbes.com/advisor/car-insurance/state/best-cheap-car-insurance-wisconsin/ 50% 50%
Wyoming https://www.forbes.com/advisor/car-insurance/state/wyoming/ 31% 31%
We averaged the rate increase in each state among large insurers for drivers with liability coverage of $100,000 bodily injury per person, $300,000 bodily injury per accident and $100,000 for property damage (100/300/100), and collision and comprehensive insurance. Source: Quadrant Information Services

 

Variations in Accident Severity and State Laws

The overall severity of the car accident and the resulting cost of an insurance claim can affect a rate increase. A minor parking lot fender bender typically won’t have the same impact as a major accident. In certain states, your insurer can’t raise rates if the claim is under a certain dollar amount.

For example, if you cause a car accident in Massachusetts, you won’t get a surcharge for accident claims under $1,000. And in New York, you can’t get a surcharge if there were no injuries and the total damage caused by the accident is less than $2,000. (But if you have two or more accidents like this, you can receive higher rates).

Can My Car Insurance Rates Go Up If I Didn’t Cause the Accident?

Car insurance rates generally go up only when you cause a car accident that results in damage or injuries to others. Here are some examples of car accidents that won’t lead to a rate increase:

  • Your car was struck in a hit-and-run accident.
  • Your car was legally parked when it was damaged.
  • Your car was struck in the rear by another vehicle and you were not convicted of a moving traffic violation in relation to the accident.

If you’re involved in an accident, your car insurance company might require proof that you weren’t to blame Here are some examples of documents you can gather:

  • A police report about the accident
  • A statement from the other driver’s insurance company accepting the fault
  • Another driver’s written statement, under penalty of perjury, attesting to fault
  • A legal document showing that you were reimbursed for accident damage

Also, accident claims paid by comprehensive insurance generally don’t result in a rate increase. These include collisions with animals and damage caused by falling or flying objects (like gravel or road debris).

Nonetheless, comprehensive claims are recorded in your claims history. Insurers generally consider drivers with a history of claims to be more likely to file future claims, which can translate into higher car insurance premiums.

How Long Will an Accident Affect My Car Insurance Rates?

How long an at-fault accident affects your car insurance rates depends on your insurance company and state, but it’s generally around three to five years. For example, states like New York and Texas allow insurance companies to apply surcharges only for accidents for the past three years, but states like Massachusetts allow surcharges for five years.

Some states and insurers will decrease the cost of the surcharge applied to an insurance policy for each year you drive without an incident (such as another at-fault accident or a moving traffic violation).

How Can I Lower My Car Insurance Rates After an Accident?

If you get hit with a surcharge because of a car accident, here are ways to reduce your car insurance bill:

Ask for discounts

It might seem awkward to ask your insurance company about possible price breaks after a car accident, but you may still be able to qualify for discount car insurance. For example, you might shave a few bucks off your bill by going paperless, or you might get a lower rate if you no longer have a daily commute.

Put your safe driving to the test

The best way to recover from an at-fault accident is to practice safe driving. If you believe you’re a very good driver, you might consider usage-based insurance. These programs track your driving actions and produce a score and tips for improving your driving. If you score well, you could earn a discount.

Shop around

If you’re unhappy with your current insurer’s prices and/or service, you might want to compare car insurance quotes. One of the best ways to save money on insurance is by shopping around. While an accident surcharge will follow you to a new car insurance company, they may still be able to beat your old company’s rates.

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Car Insurance Rates After an Accident FAQ

How can I get cheaper insurance after a car accident?

If you cause a car accident, chances are you’re going to see a car insurance increase at the next renewal time. But that doesn’t mean you’re stuck with those rates. Rates vary widely among insurers for the same coverage, so you could pay less elsewhere. You can start the process by comparing car insurance quotes among a few different companies.

Will my car insurance rates go up if I have accident forgiveness?

If you cause an accident and you have accident forgiveness, your insurer won’t raise your car insurance rates. But there are certain rules for accident forgiveness that vary by company. For example, your insurer might only “forgive” one accident every three years. If you cause two accidents in that time frame, your rates are going to increase.

Keep in mind, accident forgiveness only applies to your insurance rates. If you cause an accident, it’s still going to be on your driving history, which can affect your car insurance rates if you switch car insurance companies. Your state could also assign points to your driver’s license.

Can car insurance rates increase if an accident isn’t your fault?

If a car accident is caused 100% by someone else, you shouldn’t see a rate increase. For example, if another driver rear-ends you at a stop light, you wouldn’t be considered at fault.

States have variations in how they deal with partial fault due to comparative negligence laws. For example, in California your damage award is offset by your share of the fault. In Arkansas, you can’t get any damage award if you were more than 50% at fault.

Also, if you have been in a few accidents, you may see increased rates due to the number of accidents you’ve been in. You seem riskier to insurance companies when you’ve been in multiple accidents or made multiple insurance claims, even if you weren’t the driver at fault in the incidents.