How Much Does Insurance Go Up After an Accident?

If you need to file a claim, it’s natural to ask, “How much does insurance increase after an accident?” The answer is rarely one-size-fits-all. Whether your premium changes – and by how much – can depend on several factors related to the accident, your driving history and your policy.

Quick tip: Car insurance does not always go up after an accident. Fault, claim type, state rules and your insurer’s rating practices can all play a role in whether your premium changes.

Does insurance always go up after an accident?

Not always. Many people assume filing a claim automatically means their rates will increase, but that isn’t always the case.

While it’s possible your rates could go up in some states, a not-at-fault accident typically wouldn’t raise your rates as much as an at-fault accident would. This depends on the regulations in your state and the insurer.

An at-fault accident that your insurance company pays out for will often be more likely to increase your rates. Even then, it can be hard to predict exactly how much because the amount often depends on the severity and type of claim resulting from the loss. Even if you don’t file a claim, your rates could still be affected if you receive a moving violation related to the accident.

Common situations that may affect your premium differently:

Insurance companies consider several details after an accident, including fault, claim severity and prior claim history, when determining whether rates may change.

Need help with the reporting process? Read “How to File an Auto Insurance Claim: A Step-by-Step Guide” and “What to Do After a Car Accident”.

Do car insurance rates go up after a no-fault accident?

This can happen in some states, but not always. A not-at-fault accident usually has less effect than an at-fault accident, though state rules and insurer practices matter. If another driver caused the crash, your insurer may still review the overall loss details when determining future rates.

If my state is a “no-fault” state, will my premium still go up after an accident?

Even if you live in a “no-fault” state, your premium can still increase after an accident. There can be confusion around the concept of “no-fault.” Being in a no-fault state doesn’t determine whether you can be found at fault for an accident. “No-fault” simply means drivers are responsible for their own medical expenses, up to a specified limit, in the event of an accident, regardless of who causes the collision. In these states, drivers are required to have personal injury protection (PIP) insurance to cover at least a portion of their own medical bills and related expenses. Your insurer will still investigate the facts of the claim to determine who’s at fault and handle any other claims resulting from the accident accordingly.

If I file a comprehensive (other-than-collision) claim, will my premium go up?

Some examples of comprehensive car insurance claims include theft, vandalism, fire, weather damage, chipped or cracked glass, and more. These claims typically don’t involve another vehicle. In some states, hitting a deer or other animal falls under comprehensive coverage. If you do see an increase, it typically won’t be as much as an at-fault accident.

Quick resources: “What Is Comprehensive Insurance?”, “Does Car Insurance Cover Flood Damage?” and “Does Insurance Cover Windshield Replacement?”

What is accident forgiveness?

The exact circumstances of accident forgiveness may vary by insurance company. Typically, it’s a system that recognizes prior good driving experience in the event you eventually have an accident. For example, if you’ve had an otherwise clean driving record for a certain number of years before an accident, some or all of the rate increase associated with that accident may be waived. There are also types of accident forgiveness that can be purchased. This means you may pay slightly more in premium over time in exchange for waiving or partially waiving the related increase if you have a qualified accident. The exact circumstances and offerings of accident forgiveness vary by insurance company and state.

Does Amica have accident forgiveness? Yes, on a case-by-case basis. Call 833-513-3881 to speak with an Amica representative about your policy options, state availability and whether any eligibility requirements apply.

How long does an accident stay on your record?

Rate increases tied to car accidents are usually removed after a period of time, which varies by state and insurance company. In general, insurers look back at several years of your claim history when determining your car insurance rate. More serious accidents or multiple claims within a short period of time may affect rates differently than isolated incidents.

Want options? These resources may help: “How to Compare Car Insurance Quotes” and “How to Switch Car Insurance Companies”.

How to lower your insurance after a car accident

Review available discounts

While you usually can’t remove a rate increase that’s tied to an accident, there may still be ways to lower your premium and lessen the impact. One of the best places to start is making sure you are receiving all the car insurance discounts you qualify for. Many discounts are applied automatically, but some require action on your part. For example, if you’ve taken a defensive driving course but haven’t submitted proof to your insurance company, you could be missing out on a discount if your state offers it. There are also often discounts associated with certain payment options. If you enroll in automatic payments, pay in full or go paperless, you may be eligible for discounts depending on your state and insurer.

Review your coverages and deductibles

Adjusting coverages and deductibles is another way to reduce premium. While Amica doesn’t recommend reducing liability limits, one area you may be able to review is the physical damage coverage on your vehicles. As a vehicle gets older, some people choose to remove physical damage coverage, such as collision or comprehensive. This is because you could be paying more for these coverages over time than you would receive in the case of a total loss. However, it’s always better to have the coverage you need than to cut corners just to save premium. Additionally, if a higher deductible fits your budget, it usually helps lower premiums.

Get the help you need

Filing a claim can be stressful, but we’re here to help make the process easier to understand. While it’s best to notify your insurer about any loss, talking to us about an accident doesn’t automatically mean your rates will go up. We’re happy to discuss your questions about claims, coverage and next steps. Just give us a call at 833-513-3881.