How Much Does Car Insurance Go Up After an Accident?

Short answer: there is no single national figure. How much your car insurance goes up after an accident depends on your insurer’s rating rules, your state’s laws, whether you were found at fault, the size of the claim and the rest of your driving record. An at-fault accident typically counts against you for several years; state rules set some of the limits. For example, California looks back three years for its Good Driver Discount, and Massachusetts’ Safe Driver Insurance Plan uses a six-year period.

Why there’s no one number

Each insurer sets its own rating rules within state law, so the same accident can change two companies’ prices by different amounts. In Massachusetts, for example, insurers can use the state’s Safe Driver Insurance Plan or develop their own merit rating plan for approval by the Division of Insurance. That’s also why comparing quotes after an accident can make a real difference.

What usually decides the increase

Fault. States and insurers generally treat at-fault accidents differently from accidents you didn’t cause.
The size of the claim. Some state rules only count accidents above a dollar threshold.
Injuries. Accidents with injuries can be treated more seriously than property-damage-only accidents.
Your record. A first accident on a clean record and an accident on top of tickets or other claims are rated differently.
Discounts you could lose, such as a good driver or claim-free discount.

How fault is decided: two state examples

California

An insurer can find you principally at fault only if your actions or omissions were at least 51 percent of the legal cause of the accident, and the accident caused injury or death, or more than $1,000 in property damage.
You are presumed not principally at fault in several situations, including when your car was lawfully parked, when you were rear-ended and weren’t convicted of a related moving violation, when the other driver was convicted and you weren’t, when a hit-and-run driver damaged your car and it was reported, and when the accident was caused by contact with animals, birds or falling objects.
For the Good Driver Discount, insurers look at the previous three years. A principally at-fault accident with property damage only counts as one violation point; one involving death or bodily injury makes you ineligible for the discount during that period.

Massachusetts

Under the Safe Driver Insurance Plan (SDIP), an at-fault accident is one where a driver is more than 50 percent at fault and the claim payment is more than $1,000 (beyond any deductible) under certain coverages.
Your SDIP rating adds up the surcharge points from incidents in a six-year period. A major at-fault accident is 4 points.
For experienced drivers, each surcharge point is a 15% increase on bodily injury, personal injury protection, property damage and collision coverage, at insurers that use the SDIP.
Drivers with no surchargeable incidents can qualify for Excellent Driver discounts, which an accident can affect.

Other states have their own rules. Your state insurance department can tell you how accidents are treated where you live; see your state’s insurance requirements for the regulator’s contact information.

If you weren’t at fault

Under fault rules like California’s presumptions above, some accidents are presumed not to be your fault. If your price goes up after an accident you believe wasn’t your fault, ask your insurer in writing how the accident was coded and which rule caused the change. If you disagree, your state insurance department can explain your options.

What to do after an accident

Handle the accident itself first; see what to do after a car accident.
Ask your insurer how the claim will be rated, whether you were found at fault, and how long it will count.
Ask whether your policy includes accident forgiveness or a claim-free discount you could lose; terms differ by company.
Compare quotes before your renewal. Because companies rate accidents differently, another insurer may charge you less. You can compare car insurance quotes with one form.

Frequently asked questions

How much does insurance go up after an accident?

It depends on your insurer, your state, whether you were at fault, the size of the claim and your driving record. There is no single national figure. Ask your insurer how the accident will be rated, and compare quotes to see what other companies would charge.

How long does an accident stay on your insurance?

It depends on the state and the insurer. For example, California’s Good Driver Discount looks at the previous three years, and Massachusetts’ Safe Driver Insurance Plan uses a six-year period.

Does a not-at-fault accident raise your insurance?

State rules and insurers generally treat accidents you didn’t cause differently from at-fault accidents. California, for example, presumes you are not principally at fault in situations such as being lawfully parked or being rear-ended. If your price changes, ask your insurer which rule caused it.

How is fault decided for insurance?

Each state sets its own rules. In California an insurer can find you principally at fault only if you were at least 51 percent of the legal cause; in Massachusetts an at-fault accident means more than 50 percent at fault with a claim payment over $1,000.

Should I switch insurers after an accident?

It can be worth comparing. Insurers rate accidents differently, so another company may charge less for the same coverage. Keep your current policy active until the new one starts.

Sources

This guide is general information, not insurance or legal advice. Coverage and requirements vary by insurer and state.