Car Insurance After Accident

How Much Does Insurance Go Up After an Accident?

After you have a car accident, the cost of your car insurance usually goes up. We looked into this, and on average, across the country, if you’ve had a single accident, your insurance rate might go up to around $2,212 per year. This is about $665 more each year compared to the average rate for someone with a clean driving record, which is $1,547.

Now, it’s important to know that these insurance rates can vary a lot based on different things like where you live, what kind of car you drive, your insurance score, how old you are, and more. Your driving history is just one part of what insurance companies look at when deciding how much you should pay.

Different insurance companies also have different rates for drivers who’ve had an accident. For example, USAA, which is only for members of the military community, has the lowest rates for drivers with a single accident, at $1,444 per year. State Farm is the next cheapest at $1,522. On the other hand, Farmers has the highest rate we found in our study, which is $3,207 per year.

Here are the key things to remember:

  • Average Increase: After an accident, your insurance might go up by an average of $665 per year.
  • Different Rates: The amount you pay can vary a lot, and it depends on the insurance company.
  • Lowest Rates: USAA and State Farm have some of the lowest rates for drivers with one accident.
car insurance after accident

Cheap car insurance after an accident by company

Finding affordable car insurance after an accident is important, and we’ve got some insights to help you navigate the options. We’ve analyzed data from various Cheap Car Insurance Companies to provide you with an overview of average annual rates post-accident.

Here’s a breakdown of the numbers:

COMPANYAVERAGE ANNUAL RATE AFTER AN ACCIDENT
Allstate$2,989
American Family Insurance$1,692
Farmers$3,207
Geico$1,949
Nationwide$2,215
Progressive$2,406
State Farm$1,522
Travelers$1,890
USAA$1,444

On average, after an accident, USAA stands out with the lowest annual rate at $1,444, while Farmers tends to have the highest at $3,207. If you’re not eligible for USAA, State Farm offers a competitive option with a sample rate of $1,522 per year.

It’s crucial to note that your specific rate may vary due to factors like your personal circumstances and location. Keep these considerations in mind as you explore the best car insurance options for your situation.

Cheap car insurance after an accident by state

Curious about which companies are likely to offer affordable car insurance after an accident? Check out the table below to find the companies that typically provide the most budget-friendly rates in each state.

StateCheapest CompanyAverage Annual Rate after an Accident
AlabamaAuto-Owners$1,950
AlaskaUmialik$1,369
ArizonaNoblr$1,063
ArkansasState Farm$1,386
CaliforniaCIG$1,623
ColoradoAmerican National$1,095
ConnecticutState Farm$1,741
DelawareTravelers$1,952
FloridaState Farm$2,194
GeorgiaAuto-Owners$1,562
HawaiiState Farm$1,326
IdahoAmerican National$664
IllinoisHastings Mutual$909
IndianaHastings Mutual$669
IowaHastings Mutual$692
KansasState Farm$1,463
KentuckyShelter$1,762
LouisianaSouthern Farm Bureau Casualty$2,439
MaineConcord Group$1,091
MarylandCumberland Mutual$1,935
MassachusettsPreferred Mutual$1,226
MichiganSecura$1,498
MinnesotaFarm Bureau Financial Services$1,092
MississippiProgressive$1,722
MissouriMissouri Farm Bureau$1,265
MontanaState Farm$1,444
NebraskaAmerican National$788
NevadaState Farm$1,885
New HampshireConcord Group$1,170
New JerseyNJM$1,474
New MexicoCentral Insurance$1,256
New YorkMain Street America$1,303
North CarolinaNorth Carolina Farm Bureau$1,464
North DakotaState Farm$1,306
OhioHastings Mutual$640
OklahomaAmerican Farmers & Ranchers$1,493
OregonState Farm$1,230
PennsylvaniaTravelers$1,365
Rhode IslandTravelers$1,751
South CarolinaAmerican National$775
South DakotaState Farm$1,268
TennesseeTennessee Farm Bureau$1,285
TexasRedpoint County Mutual$974
UtahAuto-Owners$1,696
VermontState Farm$1,053
VirginiaAuto-Owners$1,107
WashingtonPemco$985
Washington, D.C.Erie$1,429
West VirginiaState Farm$1,751
WisconsinHastings Mutual$974
WyomingAmerican National$1,086

To determine the cheapest insurer after a crash in each state, NerdWallet analyzed full coverage rates across all ZIP codes in all 50 states and Washington, D.C. The study focused on a 35-year-old driver with good credit and a recent at-fault accident. USAA, although often the most affordable choice, is not included in this table as its policies are exclusively available to active military members, veterans, and their families.

How to Save Money on Car Insurance After an Accident

Looking for the best deal on car insurance? Well, shopping around is a great start, but there are some other things you can do to make sure you’re getting the cheapest rate possible. Here are a few tips:

  • Raise Your Deductible: The deductible is the amount of money you pay from your own pocket when you make a claim for things like accidents or damage to your car. By increasing your deductible, you can lower your insurance premium, but keep in mind that you’ll have to pay more out of your own pocket if something happens.
  • Add Discounts to Your Policy: Discounts can be your friend! They can help balance out any increase in your insurance rate after an accident. Check with your insurance company or agent to see if there are any discounts you can add to your policy.
  • Improve Your Credit: This one takes time, but it’s worth it. A good credit score can actually lead to a more affordable car insurance rate in many states. So, keep working on building that healthy credit report!

How Can I Lower My Car Insurance Costs After an Accident?

If you’ve been in a car accident, you might be wondering how to bring down your insurance costs. The good news is that insurance companies have various discounts available, catering to both safe drivers and those who’ve had accidents.

Here are some strategies to help you lower your insurance rates:

  • Bundle Your Policies: Consider combining your car insurance with other policies, like homeowners or renters insurance, with the same company. This can lead to reduced premiums for both.
  • Multi-Car Discount: If you have more than one car, using the same insurer for all your vehicles can result in savings on your premiums.
  • Defensive Driver Course: In some states, taking a defensive driving course can qualify you for a discount, especially if you’re over the age of 55.
  • Occupation Affiliations: Certain occupations, such as first responders, military personnel, and government positions, may make you eligible for discounts. Membership in groups like alumni or professional associations could also qualify you.
  • Telematics Discounts: Some insurers offer discounts through telematics programs, where real-time data monitors your driving habits. If you drive safely, this can lead to personalized lower rates.
  • Safe Vehicle Discounts: Most insurance companies provide a small discount if your car is equipped with safety features like airbags, anti-lock brakes, and anti-theft devices.
  • Hybrid/Electric Car Discounts: Insurers are increasingly offering discounts for environmentally friendly vehicles.
  • Payment Discounts: Opting to pay your premium in full or setting up automatic payments online can result in savings.
  • Online Quote Discounts: Requesting and purchasing your policy online with some insurers can qualify you for a discount.

How Long Does an Accident Affect Your Driving Record?

Typically, when you’re involved in an accident, it stays on your car insurance record for about three to five years. The exact duration varies depending on where you live and which insurance company you’re with. However, most insurance companies usually consider the past three to five years when determining your eligibility and rates. This same time frame applies to tickets and other driving violations.

Insurance companies rely on two main reports to figure out your rates during the application process:

  • Comprehensive Loss Underwriting Exchange (CLUE) Report: Often known as the CLUE report, it gives a summary of your claims history for the past seven years. This report covers both car and property claims.
  • Motor Vehicle Record (MVR): This report is like your driving report card. It includes details such as tickets, license suspensions, violations, accidents, and DUI convictions for a specific period. If your state uses a point system, your MVR will reflect that, though insurance companies typically don’t directly consider the points. Nevertheless, having multiple violations can result in higher insurance rates.

If you want to get a free copy of your CLUE report, you can contact the LexisNexis Risk Solutions Consumer Center. For a copy of your MVR, reach out to your local Department of Motor Vehicles (DMV) – there might be a small fee involved. Your insurance agent or company can also guide you on understanding the reports and the duration an accident or violation might impact your insurance rates.

FAQs

Why do my insurance rates go up after an accident?

Your car insurance rates might increase after an accident because insurance companies evaluate risk when determining costs. Essentially, if you’ve been in an accident before, statistics show there’s a higher chance you could be involved in another one. The increase in rates helps insurance companies balance the risk they take on by insuring you.

How much will my insurance go up after an accident?

On average, full coverage car insurance rates go up by around 49% after an accident. However, it’s worth noting that State Farm tends to have a smaller rate increase, at only 24%.

Can I still get car insurance after an accident?

Yes, in most cases, you can still get car insurance even after an accident. However, if you’ve had multiple accidents and received several tickets, you might face some challenges in finding a company to cover you. In such situations, nonstandard companies like The General and Direct Auto could be options worth considering.

How long does an accident impact my insurance?

Typically, an accident affects your car insurance rates for a minimum of three years. Some insurance companies may consider an at-fault accident for up to five years, and in rare cases, even longer. It’s essential to be aware of this timeframe when assessing the long-term impact on your insurance rates.

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