How Much Does Insurance Go Up After an Accident?

You do what you can to stay safe behind the wheel, from preventing distractions while driving to following the rules of the road. But if you've ever had an accident, you may have noticed an increase in your insurance premium.

There are many reasons why insurance increases after an accident. But there’s no quick-and-easy rule for how much your rate goes up after an accident. However, we can explain how your premium can be impacted after filing a claim.

How much does an at-fault accident affect my rate?

No two insurance companies are the same. So, changes in your car insurance rate after an accident will vary from company to company. How much will insurance rates go up after an accident?

According to www.USNews.com, auto insurance is around $872 higher per year for drivers with an accident on their record. While most companies will raise your rate after an at-fault accident, that exact amount can vary according to your driving history, claim cost and violation type.

Why do insurance rates go up after an accident?

A post-accident rate hike is called a surcharge. Here are a few factors that may impact your rates after an accident:

• Your insurer’s internal processes
• The number of accident claims you’ve filed in the past 5 years
• The severity of the violations on your record in the past 5 years
• The total cost of claims against you

How long will my insurance rates stay up after an accident?

Car insurance rates can remain elevated after an accident for three to five years. However, you may have options to help you manage a rate increase after an accident.

For example, if you preemptively purchased accident forgiveness coverage, your premium could potentially stay the same.

Or, if you have a clean driving record and haven’t filed a claim for a collision or been cited for a moving violation, you may even qualify for earned accident forgiveness protection. However, you must have these coverages in place before the accident. For more information, speak with your American Family Insurance agent.

How to Save on Auto Insurance

At American Family Insurance, you’ve got options to help reduce the cost of your premium. Take a look at some of our great offerings and discounts:

Leverage Accident Forgiveness with a Good Driving Record

We offer accident forgiveness to reward good drivers. As long as you haven't had any at-fault accidents or violations in the last 12 months and no more than one at-fault accident in the last three years, we may forgive your first accident, preventing a premium increase for that accident.**

Pick Up Diminishing Deductible Coverage

Another way to help keep costs down after an accident is to purchase Diminishing Deductible coverage. It’s available for all types of vehicles, including motorcycles and watercraft. With this coverage, we credit (lower) your deductible to help you better prepare for the out-of-pocket expenses if you have a claim.*** Learn more about Diminishing Deductible coverage for auto with American Family.

Bundle Your Insurance Products

You may be able to score a coverage discount by getting on the bundling bandwagon. Bundling is one of our most popular options for helping to reduce premiums.

Explore Our Auto Insurance Discounts

We offer several other ways to help you lower your premium. From enrolling in smart driving courses to usage-based insurance programs, there’s a lot you can do to save. View our auto discounts here.

Find the Right Car Insurance

There are a lot of moving pieces when it comes to car insurance. To better understand how your policy works, learn more about your auto insurance coverage options and reach out to your American Family Insurance agent with questions.

This information represents only a brief description of coverages, is not part of your policy, and is not a promise or guarantee of coverage. If there is any conflict between this information and your policy, the provisions of the policy will prevail. Insurance policy terms and conditions may apply. Exclusions may apply to policies, endorsements, or riders. Coverage may vary by state and may be subject to change. Some products are not available in every state. Please read your policy and contact your agent for assistance.

This article is for informational purposes only and based on information that is widely available. This information does not, and is not intended to, constitute legal or financial advice. You should contact a professional for advice specific to your situation.

*Customers who bundle home and auto insurance policies may save up to 23% on both policies together (as of December 2023). Discounts may vary by state, property, policy form and company underwriting the home and/or auto policy. Discounts may not apply to all coverages on a home or auto policy.

**This optional coverage may be purchased at new business or renewal for current customers. Eligibility provisions exist and may vary by state. Please speak with your agent to learn more about your options.

***Deductible will be credited $50 for 6-month policy terms and $100 for 12-month policy terms up to your policy maximum. Available at renewal for existing policyholders. Please speak with your agent to learn more about your coverage options.