Your rate usually goes up, but the amount depends on fault, your state, and your insurer
If you caused an accident, expect your car insurance rate to increase at your next renewal. Most insurers raise rates after an at-fault accident, though the size of the increase varies widely—some charge an extra $300 to $500 per year, while others charge more. If you were not at fault, your rate typically stays the same, though a few insurers may raise it anyway depending on your state's rules.
The increase is not automatic or uniform. Your insurer looks at the accident details, your driving history, the type of coverage involved, and state regulations that cap or allow certain rate hikes. A minor fender-bender costs less to insure against than a major collision, and that difference shows up in your rate. Understanding what affects the increase helps you decide whether to file a claim, switch insurers, or take other steps.
Key Takeaways
- An at-fault accident typically raises your rate by 20 to 40 percent, though the exact amount depends on your insurer and state law.
- Not-at-fault accidents usually do not raise your rate, but some insurers in some states may still increase it slightly.
- The rate increase lasts three to five years in most states, then drops off your record even though the accident stays on your driving history.
- Filing a claim for a minor accident sometimes costs more in rate increases over time than paying out of pocket, so compare the numbers before you report it.
- Switching to a different insurer after an accident may lower your rate, because not all insurers weight accidents the same way.
How much your rate typically increases after an at-fault accident
An at-fault accident raises rates by roughly 20 to 40 percent on average, but this varies by insurer and state. One driver's rate might jump $400 per year while another's jumps $800 for the same type of accident. The difference comes down to how each insurer prices risk and what your state allows them to do.
The size of the increase also depends on the accident itself. A collision where you hit a parked car costs less to repair than a multi-vehicle highway crash, and insurers charge accordingly. An accident involving injury or a high repair bill triggers a larger rate hike than a minor fender-bender. Your insurer will review the claim details and your prior driving record before setting the new rate.
Some states cap how much insurers can raise rates after an accident. California, for example, limits increases to 20 percent for a single at-fault accident. Other states have no cap, so the increase can be steeper. Check your state's insurance commissioner website to see if there are limits in your area.
Why not-at-fault accidents usually do not raise your rate
If the other driver was at fault, your insurer typically does not raise your rate. You did not cause the loss, so the accident does not signal increased risk on your part. The other driver's insurer should pay for the damage, and your rate stays the same.
There are exceptions. A handful of insurers in a few states may raise your rate slightly even after a not-at-fault accident, treating it as a sign of bad luck or poor driving conditions you were in. This is rare, but it happens. If you file a not-at-fault claim and your rate goes up at renewal, ask your insurer why. Some will remove the increase if you push back or if you can show the accident was clearly not your fault.
How long the rate increase lasts
The rate increase from an at-fault accident typically lasts three to five years, depending on your state and insurer. After that period, the accident stops affecting your rate even though it remains on your driving record. Some insurers drop the surcharge after three years; others keep it for five. A few may keep it longer if the accident involved serious injury or a very high claim amount.
Your driving record itself keeps the accident longer than your rate does. An accident may stay on your record for five to seven years, but once the surcharge period ends, it no longer pushes your rate up. This is why a clean driving record for a few years after an accident can bring your rate back down—new accidents or violations reset the clock, but old ones fade.
Comparing the cost of filing a claim versus paying out of pocket
Before you file a claim for a minor accident, do the math. If the repair bill is $2,000 and your rate will jump $400 per year for four years, you will pay $1,600 in extra premiums on top of your deductible. Filing the claim costs you the deductible (often $500 to $1,000) plus the rate increase, which can total more than paying for repairs yourself.
For larger accidents, filing usually makes sense. If repairs cost $8,000 and your deductible is $1,000, you pay $1,000 out of pocket and the insurer covers the rest. The rate increase might add $400 per year for four years, totaling $1,600 in extra premiums. You still come out ahead compared to paying $8,000 yourself. The break-even point depends on your deductible, repair cost, and how much your specific insurer raises rates.
Call your insurer and ask what your rate will be if you file a claim. Some will give you an estimate without filing. Compare that number to your repair cost and deductible, then decide. If you decide not to file, do not report the accident to your insurer unless your state requires it or your policy requires you to report all accidents.
What happens if you switch insurers after an accident
Switching to a different insurer after an accident may lower your rate, because not all insurers weight accidents equally. One company might raise your rate 35 percent after an accident; another might raise it only 20 percent for the same situation. Shopping around after an accident is worth the time.
The accident will show up on your driving record, which new insurers can see. You cannot hide it. But a new insurer may offer a better rate than your current one because they use different pricing models or offer discounts you did not have before. Get quotes from at least three insurers before switching. Some offer discounts for bundling home and auto insurance, completing a defensive driving course, or paying in full upfront—benefits that might offset the accident surcharge.
Switching before your current insurer raises your rate at renewal can save money, but do not wait too long. Once your renewal date passes and the new rate takes effect, switching becomes harder to justify because you are already locked into the higher premium for a set period (usually six months to a year).
How your driving history and other factors affect the increase
An accident on a clean driving record raises your rate less than an accident on a record with prior violations or accidents. If you have a speeding ticket or a previous accident, the new accident compounds the risk signal you send to your insurer, and the rate increase will be steeper. Conversely, if this is your first incident in five years, the increase may be smaller.
Your age, location, and the type of vehicle you drive also matter. Young drivers see larger rate increases after accidents than older drivers because insurers already consider them high-risk. Urban drivers may see different increases than rural drivers. A sports car involved in an accident costs more to insure than a sedan, so the rate increase reflects that difference.
Your coverage limits and deductible do not change the accident surcharge itself, but they affect how much you pay overall. A higher deductible lowers your base premium, which can offset some of the rate increase. A lower deductible raises your base premium, making the total cost of the accident higher.
Steps to take after an accident to protect your rate
Document the accident thoroughly at the scene. Take photos of all vehicle damage, the accident location, road conditions, and the other driver's information. Get the names and contact details of any witnesses. This documentation helps your insurer determine fault accurately. If the other driver was at fault, clear evidence protects your rate from being raised.
Report the accident to your insurer promptly, but do not admit fault or apologize for the accident. Stick to the facts: what happened, when, where, and who was involved. Let the insurer investigate and determine fault. If you believe the other driver was at fault, say so clearly.
After the accident is settled, ask your insurer for a copy of the claim file and the fault information. Review it for accuracy. If you disagree with the fault decision, you can dispute it. Some insurers will reconsider if you provide new evidence or if the other driver's insurer later accepts fault.
Frequently Asked Questions
Will my rate go up if I file a claim for a not-at-fault accident?
Usually no. Your rate should not increase if the other driver was at fault and their insurer pays the claim. However, a small number of insurers in certain states may raise your rate slightly even for not-at-fault accidents. If this happens to you, contact your insurer and ask why. You may be able to have the increase removed if you can demonstrate the accident was clearly not your fault.
How do I know if it is cheaper to file a claim or pay out of pocket?
Call your insurer and ask what your rate will be if you file a claim for this accident. Then add your deductible to the estimated rate increase over the next three to five years. Compare that total to the repair cost. If the total cost of filing is higher than paying out of pocket, skip the claim. If it is lower, file.
Can I remove an accident from my driving record?
No. An accident stays on your driving record for five to seven years depending on your state. You cannot remove it. However, the rate surcharge typically drops off after three to five years, so your rate will return to normal even though the accident remains on your record. Some states allow you to take a defensive driving course to reduce points or remove a minor violation, but this does not erase an accident.
Does my deductible affect how much my rate goes up?
Your deductible does not change the accident surcharge itself, but it affects your total cost. A higher deductible lowers your base premium, which can offset some of the rate increase. A lower deductible raises your base premium, making the accident more expensive overall. The surcharge percentage stays the same regardless of deductible.
Should I switch insurers right after an accident?
It depends on the quotes you get. Shop around and compare rates from at least three insurers. Some may offer better rates than your current insurer despite the accident. Look for discounts you might not have had before, like bundling or defensive driving course discounts. Switching before your renewal date can save money, but switching after your rate has already increased is usually not worth the effort.