After a car accident, you might think that filing an insurance claim will increase your premium. This is not necessarily true, as whether your insurance rate increases after an accident depends on several factors.
What Factors Can Affect Your Premium After a Claim?
Your driving record and whether you were found at fault in the accident are some of the factors that can affect your car insurance premium after filing a claim. Here are a few things to take a closer look at, as your insurer may consider them after you submit a car insurance claim.
1- How Claim Severity and Cost Matter
No two claims are the same. For example, there is a big difference between a minor fender-bender and a serious accident where the car is badly damaged. The cost and severity of the claim are key factors when it comes to whether your insurance premium may increase.
2- How Your Driving Record Matters
When calculating the cost of your car insurance policy, auto insurers typically consider your driving record. According to the Insurance Information Institute (III), drivers who are considered higher risk based on their driving history may be charged higher premiums. Even if you were previously viewed as a safe driver, your insurer may review your driving record again, and if new claims suggest that you have become a higher-risk driver, they may decide to increase your premium. However, filing a claim does not automatically mean that your insurance premium will increase.
Which Driver Is at Fault?
Whether your insurance premium increases after an accident may depend on whether you were found at fault. When you file a car insurance claim, an adjuster is assigned to your case to assess the damage. Your insurance company may also review the police report, interview the people involved in the accident, and examine photos of the damage. The adjuster works with the insurer to determine who was responsible for the accident. In some cases, more than one driver may be found at fault.
Car Insurance Rates After a No-Fault Accident
Some states require, or allow at their discretion, no-fault insurance. Under no-fault insurance, if you are involved in an accident related to bodily injury, your coverage will pay for you and your passengers’ medical expenses regardless of who was at fault. This does not change the fact that your insurer may take these payments into account when determining whether your premium will increase after filing a claim.
How Long Are Accidents Reported on Insurance?
If your insurer raises your premium after an at-fault accident, the increase may typically last for about three years. In some cases, the surcharge may gradually decrease each year if you do not have another accident. Some insurers offer discounts for a safe driving record, and these discounts may be removed after an accident. How long an accident affects your insurance can vary depending on the insurer and the state. Therefore, it is a good idea to check with your insurance provider to understand how filing an accident claim may impact your premium.
Average Car Insurance Increase After an At-Fault Accident
| States | Property Damages | Bodily Injuries |
| Alabama | 44% | 43% |
| Alaska | 46% | 53% |
| Arizona | 47% | 48% |
| Arkansas | 47% | 48% |
| California | 72% | 97% |
| Colorado | 35% | 33% |
| Connecticut | 51% | 52% |
| Delaware | 34% | 34% |
| Florida | 38% | 39% |
| Georgia | 47% | 47% |
| Hawaii | 37% | 37% |
| Idaho | 37% | 37% |
| Illinois | 49% | 49% |
| Indiana | 48% | 48% |
| Iowa | 45% | 47% |
| Kansas | 41% | 41% |
| Kentucky | 53% | 53% |
| Louisiana | 48% | 48% |
| Maine | 40% | 41% |
| Maryland | 52% | 52% |
| Massachusetts | 67% | 67% |
| Michigan | 45% | 45% |
| Minnesota | 41% | 42% |
| Mississippi | 46% | 47% |
| Missouri | 36% | 37% |
| Montana | 41% | 41% |
| Nebraska | 48% | 48% |
| Nevada | 43% | 44% |
| New Hampshire | 55% | 55% |
| New Jersey | 42% | 43% |
| New Mexico | 37% | 37% |
| New York | 40% | 40% |
| North Carolina | 79% | 90% |
| North Dakota | 39% | 39% |
| Ohio | 45% | 45% |
| Oklahoma | 44% | 44% |
| Oregon | 42% | 43% |
| Pennsylvania | 47% | 51% |
| Rhode Island | 55% | 45% |
| South Carolina | 39% | 39% |
| South Dakota | 42% | 42% |
| Tennessee | 44% | 45% |
| Texas | 54% | 54% |
| Utah | 44% | 44% |
| Vermont | 47% | 47% |
| Virginia | 45% | 45% |
| Washington | 36% | 37% |
| West Virginia | 41% | 41% |
| Wisconsin | 50% | 50% |
| Wyoming | 31% | 31% |
Understanding How Accident Forgiveness Helps You
Some insurers offer accident forgiveness programs. If you have this protection included in your car insurance policy, your insurance premium typically will not increase after an accident, even if you are found at fault. You should review your car insurance policy to see whether accident forgiveness is included. If it is not, you can speak with your insurance provider to find out what optional features may be available.
Whether your car insurance premium increases after an accident depends on many factors. However, by practicing safe driving habits and choosing coverage and features that match your needs, you can be better prepared for the road ahead.
