How much does insurance go up after an accident?
If you have recently had an accident with your car, you probably want to know if the price of your insurance premium will be modified.
Next we will explain how much the insurance goes up after an accident
Unfortunately, you should know that making an insurance claim means an increase in your premium regardless of whether or not you are at fault.
The good news is that if you are not guilty the increase will be less.
Even if you don’t file an accident claim, your insurance company may increase your policy as they believe you will be more accident prone in the future.
Keep in mind that when you buy insurance for your vehicle you must report the accidents in which you have been involved in the last 5 years , whether they were your fault or not.
If you don’t present all the information to the insurance company and you are found out, your policy could be voided.
Read also: Top 5 Best Car insurance
How much does insurance go up after an accident?
Knowing exactly the amount of the policy increase due to a claim is difficult to determine. This increase depends on multiple factors that insurance companies evaluate according to very particular criteria.
For example, the place where you live, the accidents or infractions you have had and your age, are some of the aspects that will be taken into account;
to determine the new amount of the premium that you must pay.
Below, we present a comparative table with the average prices of a policy before and after an accident:
How much insurance goes up after an accident:
Average annual premium for minimum coverage Average annual premium for full coverage
Before an accident $563 $1,738
after an accident $803 $2,299
Difference $240 $561
With this, although it is not exact, you can have an idea of the increase that a premium will have as a result of an accident.
The following factors have an important effect on the increase that the insurance company will apply to your policy :
- The level of the accident in which you are involved.
- The state you are in
- your accident history
- To give you a clearer idea of how much insurance goes up after an accident, below we show you the average increase for 11 of the best-known companies in the market.
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How much insurance goes up after an accident: average increase
Car Insurance Company
Average annual premium before accident($)
Average annual premium after Accident ($)
All state
1920
2366
American Family
1827
2023
AAA
2007
2883
GEICO
1325
1925
Erie Insurance
1207
1428
Farmers Insurance
1912
2841
Nationwide
1475
2258
Progressive
1419
2353
StateFarm
1422
1773
Travellers
1428
1962
USAA
1252
1754
How to lower car insurance premiums after an accident\
The most important question, after how much does insurance go up after an accident , is how to get the lowest possible premium?
Keep in mind that in the event you are not eligible for accident forgiveness from your car insurance provider, there are ways to reduce your insurance rate after a surcharge is applied.
Specialists suggest that if your car insurance rates go up after an accident, you should talk to your insurer about possible ways to offset the increase. Keep in mind that you may also get discounts for:
driving fewer miles, being a good student or having a student at home, and working in certain service-related occupations (such as teaching, healthcare, or the military) .
Here are some ways to lower your car insurance rate after an accident:
Improve your credit: Your credit score plays a role in determining your car insurance rate in some states.
Stay within your spending budget, pay off your debts and fix any discrepancies on your credit report to improve your credit score.
Increase your deductible: The higher the deductible, the lower the premium. Before you raise your deductible, make sure you can cover more out-of-pocket expenses before your insurance pays.
Look for discounts: Most car insurance companies offer a variety of discounts, including discounts for being a good student and discounts for having multiple policies.
Many also offer safe driving discounts that take advantage of technology. Some examples are Progressive Snapshot, State Farm Drive Safe and Save, Allstate Drivewise®, and Nationwide SmartRide.
Reduce your coverage: there is the possibility of reducing the amount of the premium by reducing coverage, but it is not the most recommended option.
Most states require a certain level of liability insurance to operate a vehicle, but you can trim or reduce your comprehensive or collision coverage if necessary.
Shop around – It ‘s always a good idea to shop around and find the best rates currently offered by various insurance companies.
It’s also possible that some insurers offer different discounts and coverage options than others.
Think of another car: Insuring the most expensive vehicles costs more. If you need to reduce the cost of your coverage, consider the possibility of hiring one of these cheap insurance options.
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Frequently asked questions
Below we will answer some frequently asked questions related to insurance and vehicle accidents
Can car insurance be changed after an accident?
If possible. Perhaps you were recently at fault in a car accident and are dissatisfied with the service you are receiving from your current company.
Or it is also possible that before the accident you were already thinking about changing companies and now you wonder if that is still an option.
You can change the car insurance company even with an open claim due to an accident, although you should know that it is not ideal since you will have to deal with two companies at the same time.
Keep in mind that you can’t cut ties with your old insurer entirely if you switch companies after the accident; you will have to cooperate in order to have pending claims resolved.
The previous company must work the claim whether you continue with it or not, and will also have to defend you in lawsuits related to the accident.
What can’t I do when I change insurance companies?
One thing you can’t do is try to change insurance companies and file a claim under that new policy for the accident.
The car insurance company you have at the time of the accident is the one that should handle the claim if you were at fault for the accident.
If you weren’t at fault, you can usually claim against the at-fault party’s liability coverage.
Nor can you change the limits of your coverage or the deductible after an accident to help you in a loss that has already occurred .
The coverages, limits and deductibles at the time of the accident are those that will be in force for any claim. Trying to make policy changes and give a later date or time for the accident is insurance fraud.
Read also: The Best Auto Insurance in Pennsylvania
What is the accident forgiveness program?
If the vehicle accident was not your fault, and in some cases even if it was, you may be eligible for accident forgiveness if you were enrolled in your insurer’s program.
Accident forgiveness occurs when your insurance provider waives surcharges incurred for the first at-fault accident of an eligible driver on your policy.
The program is usually free for long – term affiliates with a good driving record . Drivers new to the insurance company or with poor driving records can purchase the service for an additional monthly fee.
The following companies have some type of accident forgiveness program for registered and eligible drivers:
- Allstate
- Geico
- Nationwide
- progressive
- StateFarm
- The Hartford
- USAA
Note: State Farm Accident Forgiveness is only offered to accident-free drivers who have been with the company for at least nine years
How much insurance goes up after an accident: conclusions
Concerned about how much your current insurance company’s premium will go up after an accident;
it’s possible that when comparing prices you discover that in reality the cheapest option is still your current insurance company.
One reason is that even if your insurer knows about the accident and associated claims, in most states insurers can’t make changes to the premium while the policy is in force;
so your rates won’t go up until the next renewal period. Other insurance companies can value the accident immediately, since you have to communicate it in the application process.
At renewal time, your premium will likely go up due to the accident.
Once you get the quote from your insurer, you can compare to see if other companies can beat the rate, with the same coverage and service.
Compare the different insurers and determine which is the one that best suits your needs and your pocket. Another company may not rate accidents as harshly as the current one.
