2026-04-11 · personal, auto

How a Car Accident Affects Your Insurance

Key Takeaways

An at-fault accident almost always triggers a rate increase, while not-at-fault claims may or may not affect your premium depending on your state and insurer.
Typical surcharges from a single at-fault accident last three to five years and often push premiums higher by a meaningful percentage, though the exact amount varies widely.
Accident forgiveness programs can prevent a rate increase after a first at-fault accident, but eligibility rules and fees differ by carrier.
Comprehensive claims (hail, theft, animal strikes) usually have little to no impact on rates.
After a rate hike, shopping multiple carriers is often the fastest way to find relief, since each insurer prices accident history differently.

Introduction

After a crash, most drivers worry about two things at once: getting the claim resolved and what the accident is going to do to their premium. Even a minor fender bender can feel like it might echo on your policy for years, and the uncertainty often adds stress to an already stressful situation.

How much your insurance actually changes after an accident depends on several moving pieces: who was at fault, how severe the damage or injuries were, the laws of your state, and the way your specific insurer weighs accident history when it recalculates your rate at renewal. Two drivers in the same crash can see very different premium outcomes.

This guide walks through what typically happens to your insurance after an accident, how surcharges and accident forgiveness work, and the practical steps you can take to keep costs as low as possible.

Will Your Insurance Go Up After an Accident?

The short answer is “usually, if you were at fault.” The longer answer depends on the type of claim.

At-Fault Accidents

If you caused the accident, your insurer will almost always apply a surcharge at your next renewal. The surcharge reflects the added risk you represent based on your driving history, and it is usually the single biggest factor that pushes rates up after a claim. The size of the surcharge depends on the severity of the crash, whether injuries were involved, and your prior record.

Not-at-Fault Accidents

If the other driver was clearly at fault, the impact is more variable. Some insurers do not raise rates at all after a not-at-fault claim. Others may apply a smaller surcharge, especially if you have multiple claims on your record. Several states also have laws that limit or prohibit rate increases after a not-at-fault accident. If you are unsure how your state treats this, your state insurance department is the best first stop.

Comprehensive Claims

Claims filed under comprehensive coverage (for events like hail, theft, vandalism, or animal strikes) typically have minimal or no impact on premiums because they are not tied to driver behavior. A glass-only windshield replacement, for example, usually does not change your rate.

For a refresher on which part of your policy covers which type of loss, see our guide on auto insurance coverage types.

How Much Do Rates Typically Increase?

There is no single number that applies to every driver. According to the Insurance Information Institute and state insurance department filings, the average premium increase after a single at-fault accident generally falls within a noticeable range, often somewhere between the low double digits and more than fifty percent at renewal. The actual number for your policy depends on:

Severity of the accident. A minor bumper scrape is treated differently than a multi-car crash with injuries.
Your prior driving record. A clean record before the accident tends to soften the surcharge. A record with prior violations or claims makes it worse.
Your state. State rate regulations shape how much an insurer can raise premiums and for how long.
Your insurer. Two carriers can price the same accident history very differently because each has its own underwriting model.

Surcharges from a single at-fault accident commonly stay on your policy for about three to five years, then gradually fall off. Because the surcharge compounds with other rate factors, it is worth reviewing the broader picture in our guide on auto insurance cost per month so you can see where an accident fits into total pricing.

Avoid anchoring on an exact dollar figure. Use ranges and percentages as a planning tool and then confirm your actual numbers with a renewal quote or new quote from another carrier.

At-Fault vs. Not-at-Fault: Why It Matters

Fault determination is the single biggest driver of how an accident affects your insurance.

How Fault Is Determined

After a crash, both insurers review the police report, photos, witness statements, and any physical evidence. Adjusters assign fault based on the facts and on state traffic laws. In some cases, fault is split between drivers on a percentage basis under comparative or contributory negligence rules, which can affect both the payout and how your record is updated.

No-Fault States vs. Tort States

In no-fault states, each driver’s own insurance pays for their injuries regardless of who caused the crash, through personal injury protection (PIP) coverage. Tort states, by contrast, allow the injured party to pursue the at-fault driver’s liability coverage. No-fault rules affect how injury claims flow but do not always eliminate the rate impact of being found at fault for the crash itself.

State minimum requirements and rules vary substantially. For a deeper look at how your state handles required coverage and liability, see our state auto minimums hub.

Accident Forgiveness Programs

Accident forgiveness is a feature offered by some insurers that prevents your first at-fault accident from triggering a premium surcharge. It sounds straightforward, but the details matter.

Eligibility is limited. Many insurers require a clean driving record for a set number of years before you qualify.
It usually applies to the first at-fault accident only. Subsequent accidents typically bring a surcharge back.
It may be built in or cost extra. Some carriers include accident forgiveness automatically for long-tenured customers, while others charge for it as an add-on.
It may not transfer between carriers. If you switch insurers after using forgiveness, the new carrier’s underwriting may still see the accident on your driving record and price accordingly.

If accident forgiveness is important to you, ask your current insurer whether you already have it and how it is triggered. It can be a helpful safety net, but it is not the same as making the accident disappear from your record.

What to Do After an Accident to Protect Your Rates

You cannot undo a crash, but you can make choices that keep the financial fallout manageable.

File the claim properly. Document the scene, exchange information, and report the accident in line with your policy’s deadlines. Our auto claims step-by-step guide walks through the standard process.
Understand your policy before admitting fault. Let the adjusters assign fault using the facts. Statements made at the scene can affect how the claim is processed.
Ask about accident forgiveness. If your insurer offers it and you qualify, now is the time to confirm.
Think carefully about filing very small claims. For minor damage that is close to or below your deductible, a claim may not be worth the potential surcharge. Paying out of pocket can sometimes be the better financial choice.
Do not cancel coverage mid-claim. Dropping coverage or letting a policy lapse right after an accident can make it harder and more expensive to get insured later.

When to Shop for New Coverage

If your renewal arrives with a surcharge you were not expecting, remember that you are not locked in. Insurers weigh accident history differently, and the same driver profile can generate meaningfully different quotes across carriers. Shopping around is often the single most effective lever available after a rate hike.

A few principles to keep in mind:

Compare like-for-like. Use the same coverage limits and deductibles across every quote. Our guide on how to compare insurance quotes walks through the specifics.
Consider at least three quotes. Some insurers specialize in drivers with less-than-perfect records and may offer more competitive pricing after an accident.
Stack discounts where you can. Bundling with home or renters insurance, completing a defensive driving course, or enrolling in a telematics program can offset part of the surcharge.
Do not sacrifice liability limits for a lower premium. Cutting core liability to chase a lower price can leave you underinsured for the next crash.

For a broader list of ways to bring your premium down, see our guide on how to lower insurance premiums.

Frequently Asked Questions

How long does an accident stay on your insurance record?

Most insurers look at the last three to five years of driving history when setting rates, though some look further back. Your state motor vehicle department may keep accidents on your record for longer, which can matter if you change carriers. The surcharge itself usually phases out within three to five years if no new incidents occur.

Will a not-at-fault accident raise my rates?

It depends on your insurer and your state. Many carriers do not increase rates after a clearly not-at-fault accident, and some states limit the rate impact of non-chargeable claims. However, a history of multiple claims, even not-at-fault ones, can still affect pricing at some insurers.

Does a parking lot accident affect insurance?

A parking lot accident is still an accident. If you file a claim and are found at fault, the insurer will treat it like any other at-fault accident for rating purposes. For very minor damage, drivers sometimes choose to handle repairs out of pocket rather than filing a claim, though that decision depends on the cost of repairs relative to your deductible and the likely surcharge.

Can I switch insurers after an accident?

Yes. You can shop and switch carriers at any time, including immediately after an accident. The new insurer will see the accident on your driving record and price the policy accordingly, but because each insurer weighs accident history differently, you may still find a better rate elsewhere. Just be careful to avoid a lapse in coverage during the switch.

Conclusion

An accident does not have to leave you stuck with the same insurer at a higher price for years. Understanding how at-fault rules, surcharges, accident forgiveness, and state laws interact gives you a clearer view of what is likely to happen to your premium and what you can do about it. Take the time to review your policy, ask your insurer the right questions, and shop the market if your renewal comes in higher than it should. The difference between staying put and actively managing your coverage can be significant over the life of your policy.

Sources

Insurance Information Institute, “Auto Insurance Basics,” iii.org
National Association of Insurance Commissioners (NAIC), “Auto Insurance,” naic.org
Insurance Information Institute, “Understanding Your Insurance Deductibles,” iii.org
State insurance department consumer guides (see your state department of insurance for rules on surcharges and not-at-fault protections)