How Much Does Car Insurance Increase After an Accident?

After an accident, whether it’s a fender bender in a parking lot or a rear-end collision on the highway, the same question arises once the adrenaline fades: What’s this going to do to my car insurance?

According to the National Highway Traffic Safety Administration, an estimated 6.18 million police-reported crashes occurred on US roads in 2024, meaning millions of drivers face this question every year. 

The answer depends on more factors than you probablyrealize: who was at fault, how serious the damage was, which state you’re in, and what your insurer’s policies allow. Here’s what determines your rate after a car accident and what you can do to minimize the chances of a rate increase.

Will your car insurance rates go up after an accident?

Not every accident triggers a rate increase, and even when one does, the increase can vary significantly. Here’s how insurers typically make that determination.

When rates stay the same

In the best-case scenario, your rates won’t increase simply because you were involved in an accident. If you have a history of safe driving and have not filed any prior claims, there’s a chance minor accidents or fender benders won’t negatively affect your rates. If you weren't at fault for the accident, your rates may not be affected. 

Some insurers also offer accident forgiveness, which can help keep your premium from increasing after your first eligible at-fault accident, if you qualify.

When rates increase and by how much

If the accident was your fault, someone was injured, or it caused significant damage, expect a noticeable increase. According to a LendingTree analysis of January 2026 rate data, an at-fault accident causing significant property damage can raise full-coverage premiums by an average of 45%.

An at-fault accident causing significant property damage can raise full-coverage premiums by an average of 45%.

More serious accidents involving property damage or injuries typically push that percentage higher. A DUI or serious moving violation typically leads to some of the steepest increases. Drivers under age 20 tend to see some of the largest increases of all, since insurers already classify them as higher risk—the fatal crash rate for 16- to 19-year-olds is more than three times that of drivers 20 and older, according to the Insurance Institute for Highway Safety.

If you weren’t at fault, you may still see a small increase in states that allow insurers to factor not-at-fault claims into rates, but that increase is typically less than what an at-fault accident would trigger.

Why do insurance rates go up after an accident?

The amount of the increase depends on your insurer, your state, and the details of the accident.

Insurers generally treat a prior accident as a risk signal, since a driver who has filed one claim has some likelihood of filing another. If the insurance company must pay out for damages, medical bills, or legal costs, it may raise your rates to offset the increased risk associated with future claims.

The severity of the accident matters, too: Larger claims involving injuries or significant property damage are more likely to result in a higher surcharge than a fender bender.

How much does insurance go up after a speeding ticket?

A speeding ticket will usually have less impact on your insurance rates than an at-fault accident, but it can still trigger an increase in your premium. The increase often depends on how fast you were driving over the speed limit. For example, a ticket for driving 5 to 9 miles per hour over the speed limit is generally treated less severely than a ticket for driving 20 miles per hour or more over the limit.

According to Insurify, an online insurance comparison platform, a single speeding ticket can raise full-coverage premiums by an average of nearly 30%, and that figure climbs with each additional violation or if the speed recorded was significantly over the limit.

In some states, completing driving school or similar programs can help reduce the impact of a ticket on your driving record. Because these programs vary by state, check with your state’s Department of Motor Vehicles (DMV) or the court handling the citation before assuming a ticket will be dismissed or hidden from insurers.

Should you file a claim for an accident or pay out of pocket?

If the damage is relatively minor and the repair cost is close to your deductible, paying out of pocket may be worth considering. 

Most insurers factor in an at-fault accident for three to five years, though the exact period depends on your state, and the total cost of those higher premiums could exceed the amount your insurer would pay on a small claim. Be sureto look at the long-term cost, not just the repair bill.

The situation changes when another driver is involved or anyone is injured. Then the cost of repairs is only part of the equation. Medical expenses, legal claims, and liability issues can quickly exceed what you could comfortably pay out of pocket. 

If the damage is limited to your vehicle, start by getting a repair estimate. Then compare that estimate with your deductible, and consider the possibility of higher premiums in the future. Comparing the repair cost, your deductible, and the potential increase in future premiumscan help you decide which option makes the most financial sense. 

Accident forgiveness: Enroll before you need it

Some insurers offer accident forgiveness programs that waive the surcharge after your first covered at-fault claim. Most of these programs are offered as riders (or add-ons)that can be added to your existing car insurance policy at an additional cost.

Insurers usually require you to maintain a clean driving record for a set period, often three to five years, before you are eligible. Some companies may also require you to be insured with them for a minimum period before you’re eligible. 

Also, the availability of accident forgiveness varies by insurer and state. Some states restrict or prohibit certain accident forgiveness programs, and insurers may offer different versions of coverage depending on where you live. 

You also must be enrolled in the program before you’re involved in an accident. Once you’ve had an accident, it’s too late to add accident forgiveness coverage and apply it to your claim. 

How long does an accident stay on your insurance record?

Your accident may be behind you, but it may continue to impact your insurance rates for a while. In many states, insurers consider an at-fault accident for three to five years when calculating your premiums. For example, New York allows insurers to consider an accident for three years, according to the New York Department of Financial Services. The timeline depends on where you live and which insurance company you use. 

Some states limit the “look-back” period that insurers can use to set your rates. A "look-back" period is the length of time an insurer can review your driving record and claims history when determining your car insurance premium. For example, California Code of Regulations Title 10, Section 2632.5 limits insurers to rating renewal policies based on no more than 36 months of driving history. 

It’s important to understand that your motor vehicle record and your insurance records aren’t the same. Your insurance record is the claims and driving history that your insurer uses to set your rates. Your motor vehicle record is maintained by your state’s DMV and tracks your traffic violations, suspensions, and other driving-related events. Accidents and tickets may remain on your DMV record longer than an insurer can use them to determine your rates. 

Will your rates come down after a year of no claims?

One claim-free year may not immediately lower your insurance premium after an accident, but maintaining a clean driving record over time can help reduce future insurance costs.

Most at-fault accidents will not fall off your insurance record for three to five years, so it could take that long before you see any significant rate decrease. Keep in mind that this timeline depends on the type of accident, your insurance company, and your state’s laws. 

Staying claim-free during that window can still work in your favor. Many insurers offer a discount for maintaining a clean claims history over time, on top of whatever rate reduction comes from the accident aging off your record. Ask your agent whether your policy includes this kind of claim-free discount and how it's calculated.

Why did your car insurance go up when nothing changed on your driving record?

Even if everything about you and your driving record stays the same, you may notice your car insurance rates increasing. This is due toa variety of factors out of your control, including:

• Inflation
• Higher car repair and replacement costs
• An increase in auto claims in your area, such asthose for theft, accidents, or weather-related claims

Additionally, age is another factor insurers may consider when determining premiums. Age can affect rates at both ends of the driver’s life. Younger drivers under age 20 and older drivers over age 70 may see higher rates based on insurer risk modeling, with the threshold varying by insurance carrier and state. The fatal crash rate rises sharply for drivers 16 to 19, according to the Insurance Institute for Highway Safety, and climbs again for drivers 70 and older, whose elevated risk reflects greater vulnerability to injury in a crash rather than a higher likelihood of causing one.

According to the National Association of Insurance Commissioners (NAIC), insurers in many states may consider a driver’s credit information when determining rates, too. 

How to lower your car insurance rates after an accident

Even if your rates increase after an accident, there are ways to lower your auto insurance premiums:

• Compare quotes from multiple insurersto ensure you’re getting the best car insurance for you.
• Increase the deductible on your comprehensive and/or collision coverage since, in most cases, the higher your deductible, the lower your premium will be. Keep in mind, however, that if you increase your deductible, your out-of-pocket costs will be higher if you file another claim.
• Ask your insurance agent about discounts you may be eligible for.
• Consider changing your optional coverages, but remember you must maintain your state’s minimum required coverage levels. Also, if you have a loan or lease your vehicle, you’re likely required to keep full coverage.
• Improve your credit score by paying down debts and addressing any mistakes or discrepancies on your credit report.

Even if the damage from an accident seems minor, promptly reporting an accident to your insurer is often the safest course of action. If anyone involved in the accident were to sue you down the road, failing to report the incident can make it harder for your insurance company to gather evidence and information to support you. It can also put your coverage in jeopardy. 

Your next move after an accident

An accident doesn’t have to mean years of inflated premiums. The impact depends on fault, severity, your insurer, and your state. There are steps you can take at every stage, from deciding whether to file a claim to comparing quotes at renewal. The best protection is understanding how your policy works before something happens, not after.

When you’re ready to review your coverage or explore your options, a AAA Club Alliance-licensed agent can review your coverage, explain your options, and help you find a policy that fits your needs and budget. 

Frequently Asked Questions