How much does car insurance increase after an accident?

Car insurance increases after an accident an average of $80 a month. Collision and comprehensive car insurance covers damages to your car. However, keep in mind that filing an accident claim can raise your rates regardless of if you are at fault. Drivers can save money on car insurance after an accident by adding discounts, raising deductibles, and avoiding another accident.

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Tonya Sisler has a Bachelor’s Degree from the University of South Carolina in Journalism and has worked for 15+ years in management. She has also completed a proofreading certification and is currently a professional writer.

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Brad Larson has been in the insurance industry for more than a dozen years. He started out as a claims adjuster for a national carrier. He has since switched to the agency side of the business. Brad is licensed in all P&C lines.

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Reviewed by Brad Larsen
Licensed Auto Insurance Agent Brad Larsen

UPDATED: Apr 15, 2022

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Things to Know

  • One accident increases your car insurance rates an average of $80 a month
  • Collision and comprehensive coverages pay for damages to your vehicle if you file a claim
  • Add discounts, reduce coverages, and avoid filing additional claims to keep rates low

If you spend much time on the road, the chances are that you’ll be in an accident at some point. Although your car insurance rates increase after an accident, your driving record typically clears in three to five years.

In the meantime, there are ways you can lower car insurance rates after an accident. So, take advantage of car insurance discounts and avoid adding infractions to your driving record to save. Additionally, reduce coverage amounts and raise deductibles to get lower rates overall.

The best way to avoid high car insurance rates after an accident is to shop around. Every car insurance company weighs your personal factors differently. Drivers should compare multiple companies to find the best discounts and lowest rates available.

Keep reading to learn how much insurance increases after an accident and how to keep car insurance rates as low as possible.

How much does insurance increase after an accident?

Although car accidents are common, they are costly and cause property damage and bodily injury. The Centers for Disease Control (CDC) reports that over two million people are injured in car accidents each year.

Car insurance companies will base your rate on the amount of risk you represent. Drivers with accidents on their driving records show that they are risky to insure. Car insurance rates are much higher for drivers who have accidents, tickets, or DUIs.

How long does an auto accident affect your insurance?  Each state determines how long an accident affects car insurance rates.

Not only will you be issued a fine if you cause an accident, but your car insurance rates will increase for three to five years. Some states may keep an accident on your driving record for 10 years.

How much does insurance go up after an accident?

This table shows average rates after an accident by top car insurance companies. Keep in mind that rates will vary driver.

Average Car Insurance Rates After An Accident
CompanyAverage Annual Rates with Clean RecordAverage Annual Rates with 1 AccidentRate Increase Per Month
American Family$2,693.61$3,722.75$85.76
Liberty Mutual$4,774.30$6,204.78$119.21
State Farm$2,821.18$3,396.01$47.90
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State Farm raises rates the least after an accident, and Liberty Mutual increases rates the most. Although increases vary, you’ll pay an average of $80 more a month after a car accident.

While your driving record is the most significant factor used to calculate your rates, other factors are also considered. For example, your age, vehicle, credit score, and ZIP code can all be used to determine rates.

In addition, each car insurance company uses its own method for calculating rates. So, shop around for the cheapest car insurance since every company will offer different rates.

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What type of car insurance do you need to cover an accident?

Most states require at least a minimum amount of car insurance. However, it usually doesn’t protect you or your vehicle. Full coverage car insurance offers the most protection for you and your car.

Liability coverage is typically required since it covers damages to another person, vehicle, or object if you hit them.

Collision insurance covers damages to your car and passengers in an accident. For example, collision coverage pays for damages to your vehicle if you’re in an accident.

If another person causes damage to your car, their liability coverage pays for repairs. However, if you hit a tree, your collision coverage kicks in.

Comprehensive coverage pays for damages to your car unrelated to an accident. Covered damages include fire, theft, vandalism, falling debris, and acts of nature such as floods, hurricanes, and hail.

You need all three coverages to be the most protected. Although full coverage costs more, it’s cheaper than paying out of pocket for damages to your vehicle.

How can you save on car insurance after an accident?

Don’t worry if you have an accident on your driving record. There are still ways to reduce the high rates you may be experiencing.

First, take advantage of car insurance discounts. While you may not be eligible for claims-free or safe driving discounts after an accident, you can still benefit from other savings, including multi-policy, continuous coverage, and safety feature discounts.

This table shows discounts from the top car insurance companies. The amount of the savings is listed if it is known.

Car Insurance Discounts
Car Insurance DiscountsAllstate (%)American Family (%)Farmers (%)GEICO (%)Liberty Mutual (%)Nationwide (%)Progressive (%)State Farm (%)Travelers (%)USAA (%)
Adaptive Cruise ControlN/AN/AN/AN/A5xxN/AN/AN/A
Adaptive HeadlightsN/AN/AxN/A5xxN/AN/AN/A
Anti-lock Brakesxxx555x5xx
Claim Freexxx26x10x152312
Continuous CoveragexxxxN/AN/AxN/A15N/A
Daytime Running Lightsxxx155xN/Axx
Defensive Driverxxxx105105103
Distant StudentxxxxN/A10xx7x
Driver's Edxxxx10N/A101583
Driving Device/AppxxN/Ax30402050305
Early SigningxxxxN/A8xN/A1012
Electronic Stability ControlxxxN/A5xxN/AN/AN/A
Emergency DeploymentN/AN/AN/A25N/AN/AN/AN/AN/AN/A
Engaged CoupleN/AN/AN/AN/AN/AN/AN/AN/AN/AN/A
Family LegacyN/AxN/AxN/AN/AxN/AN/A10
Family PlanN/AxxN/AN/A25N/AN/AN/AN/A
Farm VehiclexN/AxxN/AN/AN/AN/AN/AN/A
Federal EmployeeN/AN/Ax810N/AN/AN/AN/AN/A
Forward Collision WarningN/AN/AN/AN/A5xxN/AN/AN/A
Full PaymentN/Axxx$5N/AxN/A7.5N/A
Further EducationN/AN/AN/Ax1015N/AN/AxN/A
Good CreditxxN/AN/AN/AxxxN/AN/A
Good Studentxxx1522.510x2583
Green VehiclexN/A5N/A10N/AN/AN/A10N/A
Lane Departure WarningN/AN/AN/AN/AxxxN/AN/AN/A
Life InsurancexN/AN/AN/AN/AxN/AN/AN/AN/A
Low Mileagexxxxxxx30xx
Military GaragingN/AN/AN/AN/AN/AN/AN/AN/AN/A15
Multiple DriversN/AN/AN/AN/AN/AN/AN/AN/AN/AN/A
Multiple Policies1029x102010121713x
Multiple Vehiclesxxx25102010208x
New Customer/New PlanN/AN/AN/AN/AxN/AN/AN/AN/AN/A
New GraduateN/AN/AN/AN/A5N/AN/AN/AN/AN/A
Newer VehiclexN/AxxN/Axx401012
Newly LicensedN/AN/AN/AN/A5N/AN/AN/AN/AN/A
Occasional OperatorN/AN/AN/AN/AN/AN/AN/AN/AN/Ax
On-Time PaymentsxN/AN/AN/AN/AN/AN/AN/A15N/A
Online ShopperN/AN/AN/AN/AN/AN/A7N/AN/AN/A
Paperless DocumentsxxxN/AN/A5$50N/AN/AN/A
Paperless/Auto BillingxxxN/Ax$30x$233
Passive Restraintxxx40x20x40xx
Recent RetireesN/AN/AN/AN/A4N/AN/AN/AN/AN/A
Roadside AssistanceN/AN/AN/AN/AN/AN/AN/AN/AN/AN/A
Safe DriverN/AN/Ax15N/A3531152312
Seat Belt UseN/AN/AN/A15N/AN/AN/AN/AN/AN/A
Senior DriverxN/AxN/AN/AN/AN/AN/AN/Ax
Stable ResidenceN/AN/AN/AN/AN/AxxN/AN/AN/A
Students & AlumniN/AxN/Ax107N/AN/AN/AN/A
Switching ProviderN/AxxN/A10N/AxN/AN/AN/A
Utility VehiclexN/AxxN/AN/AN/AN/AN/AN/A
Vehicle Recoveryxxx153525x5xx
VIN EtchingN/AN/AxN/A5xxN/Axx
Young DriverN/AN/AN/AN/AxN/AxN/AN/A$75
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Next, reduce coverage and raise deductibles to lower rates. However, you will have to pay more out of pocket for damages in another accident.

Avoid more accidents, tickets, or DUIs to keep rates low. A clean driving record gets you the lowest car insurance rates out there.

In addition, think twice about filing another claim. Do car insurance rates rise after you file a claim?

Although some car insurance companies offer accident forgiveness, typically, your rates will increase if you file an accident claim.

How much does your insurance go up after an accident if you’re not at fault? Some companies may also raise rates even if you didn’t cause the accident but filed a claim. However, rates don’t increase as much as if you cause the accident.

Finally, shop around for the best deal. Compare coverages, rates, and discounts from multiple companies to find the coverage you need with the lowest rates.

How Much Does Insurance Increase After An Accident: The Bottom Line

Car insurance rates increase an average of $80 a month after one accident. Multiple accidents will cause rates to become awfully expensive.

Drivers can save on car insurance after an accident by adding discounts, reducing coverage, and raising deductibles. Avoiding more accidents also helps keep your rates low.

If you’re looking for the cheapest car insurance after an accident, shop around. Compare multiple companies to find affordable rates after an accident.

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Compare quotes from the top car insurance companies and save

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