How much does car insurance go up after an accident?

Car accident rates have been on the increase and experts point to everything from more distracted driving to rising temperatures caused by climate change.

There were nearly 6 million car accidents in the U.S. in 2022, according to the National Highway Traffic Safety Administration, the most recent year for which data is available.

After the initial shock wears off, the biggest surprise after a collision can be how much your insurance premiums go up — even if you weren't at fault. 

Your driving record is only one factor in determining how much you pay, but even a single accident can have a major impact.

The amount your insurance goes up after an accident depends on several factors including your insurance company, the state you live in, the car you drive, the severity of the collision and whether the accident was your fault.

"Generally speaking, your rate will go up 10% or less if you're not at fault," said Brian Moody, executive editor at Kelley's Blue Book. "If you are at fault, it's closer to 45%." 

Drivers found liable for an accident will see their rates go up, no matter which insurer they use. But the sting is definitely less with some companies than with others.

Best for affordability: Geico

Who's this for? Among major insurers available, Geico has some of the lowest average annual premiums after an at-fault accident.

Standout benefit: Geico also offers accident forgiveness, which means your insurance rate won't go up as a result of your first at-fault accident.

Best for new car owners: Nationwide

Who's this for? Nationwide offers gap insurance on cars that are up to six years old, which is more generous than many competitors. Gap insurance covers some or all of the difference between the amount your insurer pays if your car is totaled and any remaining balance on your car loan or lease.

Standout benefit: Nationwide also offers new car replacement coverage, which can replace your vehicle with the same make and model if it's a total loss.

Best for seniors: Erie  

Who's this for? Erie's rates for high-risk drivers are hundreds of dollars less than the national average. Drivers who store their vehicle for at least 90 days can qualify for a reduced usage discount — a boon to seniors who are snowbirds.

Standout benefits:  The Erie Rate Lock feature can keep your rates from going up — even after an accident — until you make changes to your policy.

On average, a car accident will remain on your record for three to five years, according to Moody. The exact amount varies by state, however: It's one year in Pennsylvania, while in Massachusetts, it's six. 

Insurance companies can review your driving record by checking your Motor Vehicle Report. It's generated by your state's Department of Motor Vehicles and lists any moving violations, traffic tickets and accidents.

If you made a claim for repairs stemming from an accident, it would appear on your CLUE report.

Any accident that is reported to either the police or your insurance company could result in a premium increase, according to Mark Friedlander, communications director with the Insurance Information Institute.

Insurers assess risk, not blame. And, statistically, the more crashes you're in, the more likely you are to have another in the future.

A few states, including Oklahoma and California, do prohibit insurance companies from raising rates after a not-at-fault accident.

Accidents happen — but there are some strategies to keep them from bumping up your premiums.

Pay out of pocket

If you're involved in a one-car accident or a minor fender-bender with another driver, you may think about paying for repairs yourself rather than filing a claim.

That could keep your rates from increasing, but if your provider finds out about it, it could result in your policy being invalidated.

In some cases, you don't have a choice: In New York, for example, an accident report must be filed with the Department of Motor Vehicles if damages exceed $1,000 or if anyone is injured.

Accident forgiveness

Many auto insurance companies offer accident forgiveness, however, either as part of a standard policy or as a separate rider you can purchase. This prevents insurance rates from going up after an accident.

"They will typically forgive your first at-fault accident, so your rate won't increase because of the incident," said Friedlander.

Each insurer handles accident forgiveness differently: With Progressive, a small claim (under $500) won't raise your rates in most states. If you remain accident-free for five years, even a larger accident can be forgiven.

You can also purchase additional accident forgiveness benefits when you start or renew your Progressive auto policy and have one eligible accident forgiven per policy period.  

Some states, like California, don't allow insurers to offer accident forgiveness. 

If your rates do go up after a crash, there are several ways to bring them down. 

Make changes to your coverage

The first thing to do if you're hit with an accident surcharge is to see where else in your coverage you can make cuts.  If your state doesn't require personal injury protection or medical payment coverage, you may decide to drop them.

If you have an older car, especially one that is fully paid for, you could consider dropping collision or comprehensive insurance.  USAA has the best rates for liability insurance, but is only available to veterans and military families. Among national carriers, State Farm has some of the cheapest minimum coverage policies.

Another option is raising your deductible, which usually lowers your monthly premium: Upping your deductible from $200 to $500 could reduce the cost of full coverage by up to 30%, according to the Insurance Information Institute, while upping it to $1,000 could save you 40% or more. 

Shop for new insurance

"The market is so competitive right now, you don't need to be stuck with your current insurer if they hit you with a high accident surcharge," said Friedlander. "You'll get different quotes from different companies, no matter what your driving record is like. It doesn't cost you anything — shopping for insurance is free."  

Look for discounts

"If someone has an accident surcharge, they should try to take advantage of as many discounts as possible," said Friedlander. "There are a lot of different programs you can qualify for [and] you can get significant savings."

Farmers has 23 discounts available to auto insurance customers, the most of any provider we've reviewed. Not all discounts are available in every state, though, and some can't be combined. 

Common discounts include:

• Bundling discount: Getting your auto insurance from the same company that handles your homeowners, life or other policy can save you more than 20%, depending on the company.

• Safety device discount: Airbags, anti-lock brakes, automatic seatbelts, daytime running lights and other protective equipment can save you as much as 23% with Geico.

• Defensive driver discount:  If you've been in an accident, a driver's ed course is a good way to prevent another one. Some companies offer drivers 55 and older a discount for completing an approved class.

• Paperless billing: Going online is an easy way to save on insurance.  

Improve your credit

Actuarial studies suggest that how people manage their finances is a good indicator of how likely they are to file an insurance claim. So in most states, insurance companies use your credit history to determine your rates. (California, Hawaii, Maryland, Massachusetts, Michigan, Nevada, Oregon and Utah prohibit or restrict the use of credit-based insurance scores.)

Paying credit card bills and other debts on time and in full and reducing the amount of credit you're using are simple ways to improve your score and lower your premiums. 

*Experian Boost® is a free service that reports things that wouldn't normally be seen by credit reporting agencies — like eligible rent, phone and subscription service payments. According to the company, users whose scores improve see their FICO® Score go up an average of 13 points. 

Buy a different car

After an accident, trading your vehicle for a less flashy ride could lower your rates. 

"Insurers base your premiums on how much it costs to repair your car," says Moody. "Even if your insurance has gone up due to an accident, your overall rate should be lower because the insurance company's risk has been minimized." 

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*Results may vary. Some may not see improved scores or approval odds. Not all lenders use Experian credit files, and not all lenders use scores impacted by Experian Boost.