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Full coverage car insurance rates can go up an average of 47% a year if you cause an accident, NerdWallet’s analysis found.
But if you switch to the cheapest insurer in your state, you may find better rates.
Are you wondering why insurance rates are higher? Ask a Nerd directly
Simply send us your questions, and our dedicated in-house Nerds will provide you with thoughtful responses within 2 business days.
Table of Contents
How an accident affects your car insurance ratesCheap car insurance after an accident by companyCheap car insurance after an accident by stateIt’s possible to get a lower rate after an accidentHow to find cheap car insurance after an accidentDo insurance rates go up after a no-fault accident?Can I keep my car insurance rate from going up after a crash?Alternative car insurance for high-risk drivers
How an accident affects your car insurance rates
An accident affects your car insurance rates for at least three years, although this varies by state and insurance provider. Even if it was a minor crash, insurers perceive you as a greater risk and will almost always increase your rates.
» MORE: How long does an accident stay on your insurance record?
NerdWallet did an analysis to see how much more drivers pay for car insurance after an accident. We compared average car insurance rates nationwide for 35-year-old drivers with a recent at-fault crash to those with no recent accidents, keeping all other factors the same. We used full coverage insurance policies for a 2020 Toyota Camry and a hypothetical accident that resulted in $10,000 worth of property damage and no injuries.
Type of policy | Clean record | One at-fault accident |
|---|---|---|
Full coverage | $2,148 | $3,164 |
Minimum coverage | $685 | $1,044 |
Our analysis found that:
Nationwide, a driver with an at-fault accident pays $1,016 more a year on average for a full-coverage policy than a driver with no traffic violations.
In Washington, D.C., and all states except Rhode Island, average annual rates were more than $500 higher for drivers who’d caused a recent accident than for those who had not.
In 10 states, average rates increased at least 50% after an at-fault accident.
In Michigan, Florida, New Jersey and Texas, average rates increased by more than $1,500 per year after an at-fault accident.
However, these are based on average rates. Your rate may differ depending on factors like your age, location and insurer.
» MORE: Average car insurance costs
The year’s best insurance
Want to make smarter insurance decisions for the year ahead? Shop our 2023 Best-Of Awards list.
Cheap car insurance after an accident by company
Car insurance companies have wildly different viewpoints on how much to raise rates due to a crash. In some states, a few companies in our analysis didn’t charge more after a small accident.
At the other extreme, we found companies with rates more than twice as high for a driver who’d caused an accident compared to an identical driver who hadn’t. And in a couple of cases, average rates were more than $3,000 a year higher after an at-fault accident.
That’s why it’s essential to compare car insurance rates from several companies to find cheap auto insurance after an accident.
State Farm, Geico, Progressive and Allstate, the nation’s four largest car insurance companies, together make up more than half of the auto insurance market. The fifth-largest car insurance company, USAA, is available only to active military members, veterans and their families.
To see how the largest insurers price policies after at-fault accidents, we looked at average rates across 44 states and Washington, D.C., where we have rates for all four of the largest companies.
State Farm returned the lowest average rates for drivers who’d caused an accident, as well as for drivers who had not. The company also showed the smallest percentage increase in rates between drivers with a clean record and those with a recent crash.
Average rates from the biggest auto insurers after an at-fault crash
Company ranked by average % increase | Average rate before an accident | Average rate after an accident |
|---|---|---|
1. State Farm | $1,431 | $1,833 |
2. Allstate | $3,110 | $4,405 |
3. Progressive | $2,075 | $3,029 |
4. Geico | $2,009 | $3,216 |
USAA | $1,120 | $1,590 |
*USAA is only available to military, veterans and their families. | ||
For drivers who qualify, USAA frequently has some of the lowest rates we found, both before and after an accident. But in some cases, USAA is no longer the cheapest option once a driver has caused an accident. In Alaska, Arkansas, Kentucky, and Wisconsin, for example, USAA is cheapest for drivers with a clean record, but other companies return the lowest rates for drivers with an at-fault crash.
So whether you’re insured with USAA or another company, it’s smart to compare car insurance rates after an accident.
Cheap car insurance after an accident by state
Wondering which companies are the most likely to offer cheap car insurance after a crash? Find your state below to see the cheapest car insurance rates after an accident on average based on where you live.
State | Cheapest Company | Average annual rate after an accident |
|---|---|---|
Alabama | Auto-Owners | $1,950 |
Alaska | Umialik | $1,369 |
Arizona | Noblr | $1,063 |
Arkansas | State Farm | $1,386 |
California | CIG | $1,623 |
Colorado | American National | $1,095 |
Connecticut | State Farm | $1,741 |
Delaware | Travelers | $1,952 |
Florida | State Farm | $2,194 |
Georgia | Auto-Owners | $1,562 |
Hawaii | State Farm | $1,326 |
Idaho | American National | $664 |
Illinois | Hastings Mutual | $909 |
Indiana | Hastings Mutual | $669 |
Iowa | Hastings Mutual | $692 |
Kansas | State Farm | $1,463 |
Kentucky | Shelter | $1,762 |
Louisiana | Southern Farm Bureau Casualty | $2,439 |
Maine | Concord Group | $1,091 |
Maryland | Cumberland Mutual | $1,935 |
Massachusetts | Preferred Mutual | $1,226 |
Michigan | Secura | $1,498 |
Minnesota | Farm Bureau Financial Services | $1,092 |
Mississippi | Progressive | $1,722 |
Missouri | Missouri Farm Bureau | $1,265 |
Montana | State Farm | $1,444 |
Nebraska | American National | $788 |
Nevada | State Farm | $1,885 |
New Hampshire | Concord Group | $1,170 |
New Jersey | NJM | $1,474 |
New Mexico | Central Insurance | $1,256 |
New York | Main Street America | $1,303 |
North Carolina | North Carolina Farm Bureau | $1,464 |
North Dakota | State Farm | $1,306 |
Ohio | Hastings Mutual | $640 |
Oklahoma | American Farmers & Ranchers | $1,493 |
Oregon | State Farm | $1,230 |
Pennsylvania | Travelers | $1,365 |
Rhode Island | Travelers | $1,751 |
South Carolina | American National | $775 |
South Dakota | State Farm | $1,268 |
Tennessee | Tennessee Farm Bureau | $1,285 |
Texas | Redpoint County Mutual | $974 |
Utah | Auto-Owners | $1,696 |
Vermont | State Farm | $1,053 |
Virginia | Auto-Owners | $1,107 |
Washington | Pemco | $985 |
Washington, D.C. | Erie | $1,429 |
West Virginia | State Farm | $1,751 |
Wisconsin | Hastings Mutual | $974 |
Wyoming | American National | $1,086 |
To find the cheapest insurer after a crash in each state, NerdWallet’s analysis looked at full coverage rates for all ZIP codes in all 50 states and Washington, D.C., for a 35-year-old driver with good credit and a recent at-fault accident. Although USAA is the cheapest option in many states, we didn’t include the company in this table since its policies are available only to active military members, veterans and their families.
Are you wondering why insurance rates are higher? Ask a Nerd directly
Simply send us your questions, and our dedicated in-house Nerds will provide you with thoughtful responses within 2 business days.
It’s possible to get a lower rate after an accident
Shopping around after an accident is the best way to ensure you are getting the cheapest rate, and our analysis shows why:
Shopping for the cheapest car insurance after a crash could save you big. Our analysis shows that shopping for the cheapest possible rate after a crash could potentially save you thousands a year, depending on your state and insurer.
No single car insurance company is cheapest for everyone. Across all 50 states and Washington, D.C., 26 different insurers tied for the cheapest option after an accident.
The cheapest insurer before an accident may not be the cheapest afterward. In over a third of the states we looked at, some drivers who were insured with the cheapest company available would need to switch insurers to continue getting the lowest possible rates after an accident.
Big-name insurance companies aren’t always cheapest. Although the nation’s 10 largest car insurance companies together account for around 75% of the car insurance market, smaller companies returned the lowest rates after an accident in 34 states and Washington, D.C. A state’s Farm Bureau insurance, for example, showed the lowest rates after an at-fault crash in five states. Some smaller insurers are available in only a few states.
» MORE: Compare car insurance rates
How to find cheap car insurance after an accident
Shopping around is the best way to find the cheapest rate, but there are other ways to ensure you are getting the lowest rate possible. You may be able to lower the rates on your current policy by:
Raising your deductible, which is the amount reduced from a potential claim check from comprehensive or collision insurance. This will cause a greater out-of-pocket cost to repair your own car if you get into an accident in the future.
Adding discounts to your policy. Discounts could help offset the increase in your rate from the accident. Check with your insurer or agent to see if any more are available to you.
Improving your credit. While improving credit is a long-term strategy, a healthy credit report will likely result in a more affordable car insurance rate in most states.
» MORE: Cheapest car insurance companies
Do insurance rates go up after a no-fault accident?
If you weren’t to blame for an accident, you might see an increase in your auto insurance rate anyway. A 2017 study by the Consumer Federation of America, the most recent data available, found that some companies raise rates 10% or more for not-at-fault accidents.
In no-fault states, everyone involved in an accident files a claim to their own insurer for injuries. Because of this, residents of those states may see rate increases after an accident, no matter who is at fault.
A few states, including Oklahoma and California, don’t allow insurers to increase your rates if a crash was not your fault. Some companies, such as USAA, even say they usually won’t raise rates if you aren’t responsible for an accident.
But regardless of whether the accident was your fault, it’s always a good idea to compare car insurance quotes to make sure you’re getting the lowest price.
Can I keep my car insurance rate from going up after a crash?
If you have accident forgiveness on your policy and this is your first accident, it’s likely that your rate won’t go up. Accident forgiveness is an optional coverage type many insurers offer that prevents your car insurance premium from increasing after your first accident.
This coverage typically costs extra, but some insurers offer free accident forgiveness to drivers who have gone without an accident for a certain period, often around five years.
Alternative car insurance for high-risk drivers
If you have multiple accidents or other serious marks on your record, you may be classified as a high-risk driver. High-risk drivers generally have a harder time finding coverage because they are considered risky to insure.
If no one will sell you a policy, you may need to look for a state-run assigned risk plan. To find an insurer, locate your state in the directory of the Automobile Insurance Plan Service Office, an industry organization, or ask your auto insurance agent for help. This is considered a “high-risk insurance pool,” in which the state assigns an insurer to you.
Frequently asked questions
How much does insurance go up after an accident?
NerdWallet’s analysis found that a driver with an at-fault accident pays an average of $1,016 more a year for a full-coverage policy, and an average of $359 more a year for a minimum-coverage policy, than a driver with no traffic violations.
Do insurance rates go up after a no-fault accident?
They can. A 2017 study by the Consumer Federation of America found that some companies raise rates 10% or more for not-at-fault accidents. If you live in a no-fault state, you’re more likely to see a rate increase after an accident, no matter who was at fault. However, some states, including Oklahoma and California, don’t allow insurers to increase your rates if a crash was not your fault.
What happens if you get insurance after an accident?
A car insurance policy only covers accidents that happen after the policy start date. If you’ve recently been in an accident and are shopping for a new policy, or renewing your old one, you’ll likely see higher rates compared to what you were paying before the accident. Be sure to compare car insurance quotes from several insurers to make sure you’re getting the best deal.
Will a hit-and-run claim raise my insurance?
Most likely, yes. Car insurance costs typically increase after a claim, so if you file a claim for a hit-and-run, you’ll probably see your premium increase.
