How Much Car Insurance Rates Go Up After an Accident
According to InsuredCircle analysis, if you cause a $10,000-damage accident, your car insurance rates can increase by nearly half a year — or $688 — on average.
However, switching to the cheapest insurer in your state may result in lower rates.
The bottom line is that it is time to shop around for cheap car insurance after an accident.
How an accident affects your car insurance rates
InsuredCircle compared average car insurance rates across the country for 40-year-old drivers with a recent at-fault accident and those with no recent accidents, while controlling for all other variables. We used full coverage policies on a 2016 Toyota Camry and a hypothetical accident with $10,000 in property damage and no injuries.
According to our findings:
- In 41 states and the District of Columbia, average annual rates for drivers who had recently caused an accident were more than $500 higher than for those who had not.
- After an at-fault accident, average rates increased by at least 50% in 18 states.
- After an at-fault accident, average rates in Louisiana, California, Michigan, Kentucky, and New Jersey increased by more than $1,000 per year.
See how your state fares.
Average car insurance rate increases after an at-fault accident, by state
States ranked by average % increase | Average rate before an accident | Average rate after an accident | % increase from accident-free rate |
California | $1,627 | $2,927 | 80% |
Massachusetts | $1,299 | $2,290 | 76% |
North Carolina | $1,075 | $1,833 | 71% |
Ohio | $1,051 | $1,702 | 62% |
New Jersey | $1,759 | $2,802 | 59% |
Georgia | $1,594 | $2,512 | 58% |
Connecticut | $1,683 | $2,644 | 57% |
Arkansas | $1,427 | $2,231 | 56% |
Vermont | $993 | $1,540 | 55% |
Louisiana | $2,971 | $4,593 | 55% |
New Hampshire | $1,056 | $1,629 | 54% |
Michigan | $2,331 | $3,566 | 53% |
Oklahoma | $1,595 | $2,440 | 53% |
Pennsylvania | $1,167 | $1,780 | 53% |
Indiana | $994 | $1,502 | 51% |
North Dakota | $1,235 | $1,865 | 51% |
Kentucky | $2,161 | $3,238 | 50% |
Rhode Island | $1,684 | $2,522 | 50% |
Nevada | $1,881 | $2,811 | 49% |
Tennessee | $1,170 | $1,746 | 49% |
Illinois | $1,163 | $1,731 | 49% |
Arizona | $1,409 | $2,086 | 48% |
Washington | $1,261 | $1,866 | 48% |
Mississippi | $1,385 | $2,049 | 48% |
Virginia | $960 | $1,417 | 48% |
Montana | $1,252 | $1,848 | 48% |
Oregon | $1,228 | $1,808 | 47% |
New Mexico | $1,241 | $1,827 | 47% |
Nebraska | $1,181 | $1,738 | 47% |
Wisconsin | $1,005 | $1,473 | 47% |
Texas | $1,471 | $2,150 | 46% |
Iowa | $997 | $1,450 | 45% |
Alabama | $1,401 | $2,035 | 45% |
Maryland | $1,595 | $2,311 | 45% |
Kansas | $1,306 | $1,887 | 44% |
Colorado | $1,570 | $2,265 | 44% |
South Carolina | $1,458 | $2,100 | 44% |
Utah | $1,248 | $1,793 | 44% |
Maine | $916 | $1,314 | 43% |
West Virginia | $1,307 | $1,872 | 43% |
Alaska | $1,180 | $1,687 | 43% |
Missouri | $1,339 | $1,910 | 43% |
Wyoming | $1,184 | $1,678 | 42% |
District of Columbia | $1,527 | $2,158 | 41% |
Delaware | $1,559 | $2,170 | 39% |
Minnesota | $1,280 | $1,779 | 39% |
South Dakota | $1,245 | $1,726 | 39% |
Idaho | $937 | $1,286 | 37% |
Florida | $2,352 | $3,220 | 37% |
Hawaii | $1,176 | $1,581 | 34% |
New York | $1,962 | $2,576 | 31% |
Cheapest car insurance companies after a crash
Car insurance companies have widely different views on how much to raise rates in the aftermath of a collision. In some states, according to our research, a few companies did not charge more after a minor accident.
At the other end of the spectrum, several companies reported rates that were more than twice as high for a driver who had caused an accident as for an identical driver who had not. In some cases, average rates rose by more than $1,500 per year after an at-fault accident.
That is why, in order to obtain cheap car insurance after an accident, it is critical to compare car insurance rates from various companies.
The four largest car insurance companies in the United States, State Farm, Geico, Progressive, and Allstate, account for more than half of the auto insurance market.
We looked at average rates across 48 states and the District of Columbia, where all four companies have a significant presence, to see how they price policies after at-fault accidents.
Geico had the lowest average rates for both drivers who had been in an accident and those who had not, while State Farm had the smallest percentage increase in rates between drivers with a clean record and those who had recently been in an accident.
Average rates from the biggest auto insurers after an at-fault crash
Company | Average rate before an accident | Average rate after an accident | Average % increase |
$1,198 | $1,557 | 30% | |
Progressive | $1,766 | $2,281 | 29% |
Allstate | $1,834 | $2,172 | 18% |
State Farm | $1,511 | $1,784 | 18% |
USAA, the fifth-largest auto insurance provider, is only available to active military members, veterans, and their families. USAA frequently has the lowest rates we find — both before and after an accident — for drivers who qualify.
However, once a driver has caused an accident, USAA is no longer the cheapest option. For drivers with a clean record in Alaska, Connecticut, and Indiana, for example, USAA is the cheapest — but other companies offer the lowest rates after an at-fault crash.
So, if you have USAA insurance and are in an accident, it is a good idea to compare rates.
It's possible to get a lower rate after an accident
Shopping around after an accident is the best way to ensure you get the best deal, and our analysis demonstrates why:
- Shopping for the cheapest car insurance after a crash could save you big. According to our analysis, shopping for the lowest possible rate after a crash could save you more than $700 per year, depending on your state.
- No single car insurance company is cheapest for everyone. After an accident in at least one state, 21 different insurers were the cheapest option across all 50 states and the District of Columbia.
- The cheapest insurer before an accident may not be the cheapest afterward. In roughly half of the states, at least some drivers who were already insured with the cheapest company available would need to switch insurers in order to continue receiving the best rates after an accident.
- Big-name insurance companies aren't always the most affordable. Despite the fact that the nation's ten largest auto insurance companies account for nearly three-quarters of the car insurance market, smaller companies returned the lowest rates after an accident in 26 states and the District of Columbia. In Indiana, Maryland, Virginia, the District of Columbia, Wisconsin, and West Virginia, for example, Erie had the lowest rates after an at-fault crash. Some of the smaller insurers are only available in a few states.
There are other ways to ensure you get the best possible rate. You may be able to reduce your current policy's rates by:
- Raising your deductible, which is the amount deducted from a potential comprehensive or collision insurance claim check. This will result in a higher out-of-pocket cost for repairing your own car if you are involved in an accident in the future.
- Adding discounts to your policy may help offset the increase in your rate caused by the accident; check with your insurer or agent to see if there are any more available to you.
- Improving your credit score. While improving credit is a long-term strategy, a clean credit report will almost certainly result in a lower car insurance rate in most states.
What if the accident wasn’t your fault?
Even if you were not at fault in an accident, you may see an increase in your auto insurance rate. According to a Consumer Federation of America study, some companies raise rates by 10% or more for not-at-fault accidents.
In the 12 no-fault states, everyone involved in an accident files a claim for injuries through their own insurance policies. As a result, residents of those states are more likely to see rate increases following an accident, regardless of who is at fault.
If you have accident forgiveness on your policy and this is your first accident, your rate is unlikely to increase. In addition, in a few states, such as Oklahoma and California, insurers are not allowed to raise your rates if the accident was not your fault. Some companies, such as USAA, even state that they will not raise your rates if you are not at fault in an accident.
However, regardless of whether you are at fault, it is always a good idea to compare car insurance quotes to ensure you are getting the best deal.
Alternative car insurance for high-risk drivers
If you have a history of multiple accidents or other serious blemishes on your driving record, it may be difficult to obtain car insurance.
If no one is willing to sell you a policy, you may need to look into a state-run assigned risk plan. Locate your state in the directory of the Automobile Insurance Plan Service Office, an industry organization, or ask your auto insurance agent for assistance in locating your state's high-risk insurance pool.