How much does insurance go up after an accident?

An auto accident can affect your insurance premium significantly. Understanding typical increases, what factors drive those changes, and how long the impact lasts helps you manage your coverage and budget after a crash.

🟩 Quick Definition 

After an at-fault accident, your auto insurance premium can increase by 20%-50% or more, depending on fault, claim severity and your driving record.

Typical Premium Increases

• A full-coverage policy may rise by 30%-50% after an at-fault accident.

• Some drivers see increases of 40%-60% on average annual premiums.

• For minor accidents or non-fault incidents, increases may be minimal or even absent (e.g., 4% or less in some cases).

• The premium increase usually remains for 3-5 years after the accident, gradually decreasing over time.

What Drives the Premium Increase

1. Fault – If you’re at fault, the increase is generally larger than if you’re not.

2. Severity of the Accident and Claim Size – More damage, injuries or claims lead to higher hikes.

3. Driving History and Prior Claims – A clean record with no previous claims will soften the impact; multiple accidents amplify it.

4. Location and Insurance Company – State regulations, claim frequency in your region and insurer policies all influence how much your rate goes up.

5. Type of Coverage – The class of your policy (basic vs full coverage) and your deductible also affect how steep the increase may be.

How Long Will Rates Stay Elevated?

After an accident, many insurers treat you as higher risk for a 3-to-5 year period. During this time, your premiums may be elevated. Once that window passes and you remain accident-free, your rate often starts coming down.

FAQs

Q1. Does my premium always go up after an accident?
Not always. If the accident was not your fault, or if your insurer offers accident forgiveness, you might avoid a rate increase.

Q2. How much more will I pay in dollars?
It varies. For example, if your full-coverage premium was $2,000/year, a 40% increase means about $800 more annually.

Q3. Can I prevent my rate from going up after an accident?
Possibly. Look into whether your insurer offers accident forgiveness, or ensure the other driver is clearly at fault and your insurer applies that correctly.

Q4. What should I do after an accident to reduce impact?
Report the accident promptly, provide accurate details, and don’t downplay injuries or damages. Later, shop around at renewal time to compare rates.

Q5. Will a non-fault accident never raise my premium?
Not necessarily. While many insurers raise rates less for non-fault accidents, some still apply small increases depending on state rules and your risk profile.

Final Thoughts

An accident can materially raise your insurance cost—sometimes by 20%-50% or more—especially if you’re at fault, the damage is significant, or your driving record is less than perfect. Knowing this helps you prepare financially and make informed decisions.

Are you facing a rate hike after an accident and want to explore better options? Fill out the form below to get expert help and personalized quotes tailored to your situation—together we can work to reduce your premium and protect your wallet.