How Much Does Insurance Increase After an Accident ?

How Much Does Insurance Increase After an Accident ?

Car accidents happen, and at some point, it’s inevitable, even for drivers who drive very carefully. Whether you are at fault or not, being involved in an accident can be pretty stressful, and that is precisely when you realize how much having car insurance can help you in either situation.

Your car insurance covers property damage and pays for medical costs.

Not-at-fault accidents

Let’s start with an optimistic view, and let’s say the accident was not your fault, and guess what? Your rates will still rise in certain states. Unfair, huh? Well, it is what it is.

Your rates will not rise as much as at-fault accidents, but similar to any other violation, a not-at-fault accident goes on your driving record and stays there for a few years.

As for how long would it affect your rates, we can’t give you a minimum or maximum time because the length varies by insurer and the state you live in. However, we can say for sure that it will be no more than 4%; still, we advise you to check with your insurer.

At-fault accidents

Before we start, I want to say that just because you had an at-fault accident, and it looks bad, it doesn’t mean you’ll go broke paying for insurance premiums.

But the accidents you cause always raise your insurance price, and big shocker, insurance companies will charge more for at-fault accidents than those that were not your fault.

But the good news is that in certain states, your insurer will not charge you with a higher premium for an accident if the damages caused are under a specific dollar amount.

And if your rate is raised anyway, you shouldn’t worry your insurance company will lower your rates after a few years, and again the length in which your premium is increased depends on which insurance company you choose and which state you live in.

How much will your rates rise after an at-fault accident?

We cannot predict exactly how much your car insurance rate will increase after an at-fault accident. Laura Adams, a financial and insurance expert, said:

“Having an accident or a moving violation on your driving record is a red flag to insurers, which typically causes your auto rate to increase significantly.

How much it goes up depends on various factors, including your insurer, the state where you live, having prior accidents or moving violations, and your age. Younger drivers tend to pay the most after accidents because insurers view them as potentially risky customers.”

We can tell you for sure that your car insurance rates can go up to 49% (nearly 50%) or around $348 a year on average if you were involved in an at-fault accident.

Again, it depends on different factors; for example, if you live in Delaware, your rates will rise up to 31%, but if you live in Illinois, your rates can rise up to 55%. The same goes for your insurance company.

Another example would be that if your insurer is Progressive, for instance, your rates may rise up to 84%, but if your insurance provider is State Farm, your rates may only rise up to 56%. So, don’t just take a look at the average number, do more research and go forward with knowledge.

Why do insurance rates go up after an accident?

Insurance providers don’t charge you with a higher premium in order to punish you, and they adjust your rates according to the new data you gave them by getting into a collision.

You see, having a history of causing an accident can make you into a riskier driver who has a higher chance of filing claims, and no one, especially insurance companies, does not like to pay more than what they should.

Risky drivers pay more for auto insurance based on the risk they are considered to be, much like new and inexperienced drivers. As we said repeatedly, you needn’t worry; you don’t have to pay higher rates forever; the rates will drop after a few years.

Be aware!!

There is not a single car insurance company that is cheapest for everyone. One of the reasons I didn’t focus on insurance companies in this article is because across all 50 states, there are hundreds of different insurers, and they have even different average rates and products in each state.

My advice? Shop around and get quotes from other insurance companies, or hire an insurance broker to find you the cheapest rates possible.

Interesting and very actual fact, the insurance provider with the cheapest rates before an accident may not be the cheapest afterward. I did some digging, and the statistics show some drivers who were insured with the most reasonable rates switched insurers after an accident to continue getting the lowest possible rates.

Repeatedly, we mentioned in almost all articles that popular insurance companies or the ones that pay the most to advertise their brand are NOT always the cheapest or the best.

Smaller companies can offer you what you need after or before an accident with much more affordable rates, so do not look past them; give them a chance and take them into consideration.

How to lower your insurance rates after an accident?

Whether you’re anticipating a rise in your insurance rates due to a recent accident or you are already paying for it, there are things you can do to pay less for your auto insurance. Waiting until the rates drop can end up costing you a lot of money while you could have paid less.

• Shop Around:

Ever since I myself started writing about auto insurance, the first term I got to know is “Shopping around,” and it means exactly what it implies. Shopping and looking for the cheapest car insurance after a crash could save you money.

Many people do it just to find a lower insurance rate, even before a disaster-ish accident. Shopping has proven to be one of the most effective ways, and you don’t believe me? I researched and asked a couple of insurance companies and found out that shopping around can save you more than $1,350 a year after a crash.

• Ask for Discounts:

Never feel shy about asking for discounts; by speaking up, you can avoid paying a certain amount of money. So, always check with your insurance provider about available discounts.

For example, a simple defensive driving course or having certain safety features in your car can save you more than you’d think.

• Be a Safe Driver:

There is no doubt that safe drivers pay less for auto insurance because they are risk-free. But even the best drivers get into an accident, and that should not be a discouragement in any way. It doesn’t matter if you were or were not a safe driver before an accident.

Suppose you become a safe driver afterward. Driving safely and having no driving violation is THE best way to recover from an accident where you were at fault.

To be frank, it is very crucial to avoid additional violations and at-fault accidents because another accident or violation on your record during the period you’re paying for a recent at-fault accident could be very, very costly.

• Adjust Your Coverage:

Another good piece of advice I can give is adjusting your coverages and deductibles. You can remove some coverages that are not so important for now and raise your deductible in order to lower your auto premium. But be very careful when editing; you do not want to remove coverage that is necessary to protect yourself.

Accident forgiveness programs

There is one more thing I wanted to mention here that can be a real lifesaver, and that is “Accident Forgiveness.”  An accident forgiveness program, as the name implies, is for when you have an accident.

With this program, your accident will be forgiven, and your insurance company will act as if nothing happened. Great, right? Although, you have to be eligible for accident forgiveness, and it is only valid for the first accident you have within a specified timeframe, like three or five years (it varies by the insurance company).

Accident forgiveness programs are optional endorsements or add-ons, which means if you want it, you have to add it to your policy and pay extra for it. However, if you have been with a company for a certain length of time, you may qualify for free, depending on your insurance provider, and we can’t tell for certain which companies or for how long.

What we can tell you is that the following companies offer accident forgiveness programs to eligible drivers:

1. Allstate
2. GEICO
3. Nationwide
4. Progressive
5. State Farm
6. The Hartford
7. USAA