- An at-fault accident commonly raises premiums for three to five years; how much depends on your insurer, state, and the size of the claim.
- Not-at-fault accidents often don’t raise rates, and some states limit surcharges for them.
- Accident forgiveness can prevent a first-accident surcharge, if you had it before the crash.
- Insurers weigh accidents differently, so shopping at renewal can recover a lot of the increase.
After a crash, your first priorities are safety, your health and getting the car fixed. But it’s natural to wonder what happens to your insurance bill next. Here’s how insurers treat accidents and what you can do to limit the long-term cost.
Right after an accident: a quick checklist
- Check for injuries and call 911 if anyone is hurt or vehicles block traffic.
- Move to safety if you can, and turn on hazard lights.
- Exchange names, contact details, insurance information and license plates with other drivers.
- Take photos of the scene, vehicles, damage and road conditions; collect witness contacts.
- File a police report if required in your state or if there are injuries or significant damage.
- Notify your insurer promptly, as most policies require timely notice.
- Don’t admit fault at the scene; let the insurers determine responsibility.
How accidents affect your rate
| Situation | Typical effect |
|---|---|
| At-fault accident with a paid claim | Surcharge at renewal, often lasting three to five years |
| Not-at-fault accident | Often no increase; some states restrict surcharges |
| Comprehensive claim (hail, theft, animal) | Usually a smaller effect than at-fault collision claims, if any |
| Accident with a DUI or reckless driving | Large increase; you may need an SR-22 filing |
| Multiple accidents or claims | Possible non-renewal; you may need a high-risk insurer |
Surcharges usually apply at your next renewal, not immediately. Each insurer has its own rules for how long an accident counts and how much it adds.
Should you file a claim for a small accident?
If damage is minor, no one is hurt, and the repair costs only a little more than your deductible, paying out of pocket may cost less than a multi-year surcharge. But be careful:
- Always file if anyone may be injured or another driver’s property is damaged. Injuries can surface later, and liability claims can be expensive.
- Your policy requires you to report accidents. Ask your insurer how reporting without a claim is treated.
- Get a repair estimate before deciding.
Accident forgiveness
Many insurers offer accident forgiveness, either as an add-on or as a reward for years without claims. It typically prevents a surcharge for your first at-fault accident. It must be on your policy before the accident, it isn’t available in every state, and it usually applies once in a set period. Check the details in your policy.
How to lower your rate after an accident
- Shop at renewal. Some insurers penalize accidents much less than others. See how to compare quotes.
- Take a defensive driving course. Some insurers and states offer a discount or allow it to offset points.
- Try usage-based insurance to show safe habits.
- Raise your deductible if you have savings to cover it.
- Bundle auto with home or renters insurance.
- Avoid more incidents. A second claim can lead to much bigger increases or non-renewal.
- Mark the date when the accident should drop off your insurance record and re-shop then.
If you’re labeled high-risk
Several at-fault accidents, a DUI or a license suspension can push you into the high-risk market. You may need non-standard insurers or your state’s assigned-risk plan, and some situations require an SR-22 certificate of financial responsibility. Rates fall as your record improves, so keep shopping as incidents age.
Related: full coverage vs liability · how much car insurance you need
Frequently asked questions
How long does an accident affect car insurance rates?
Commonly three to five years for an at-fault accident, depending on the insurer and state.
Will my rates go up if the accident wasn’t my fault?
Often not, but it depends on the insurer and state. Some states limit surcharges for not-at-fault accidents.
Should I switch insurers after an accident?
Shopping is smart, especially at renewal. Insurers weigh accidents differently, so another company may offer a lower rate even with the accident on your record.