How Much Will My Auto Insurance Go Up After an Accident?

Dec 17, 2025

Auto Insurance

If you’ve recently been in a car accident or are simply curious about how accidents impact your auto insurance, understanding the potential increase in your premiums is essential. Your auto insurance rates may rise after an accident based on several factors including fault, severity, and your driving history. Knowing what to expect can help you better manage your coverage and finances.

Average Rate Increases After an Accident

On average, drivers who are deemed at fault in an accident can expect their auto insurance premiums to increase by roughly 20% to 50% following a claim. For minor accidents, such as a small fender bender, the increase tends to be on the lower end of that spectrum, typically around 20–30%. However, in more serious accidents involving injuries or extensive property damage, increases can soar to 50% or even higher.

Drivers with multiple recent accidents or a poor driving record may see increases closer to 100%, and in some cases, insurers may even refuse to renew coverage due to high risk.

Factors Influencing Premium Changes

Several key factors determine how much your insurance will increase after an accident:

Fault: Being found at fault in an accident almost always results in higher premiums. Even accidents that are not your fault could impact rates in some states, as insurers consider anyone involved in accidents to carry a higher risk.
Severity of the Accident: The cost of repair, medical bills, or legal claims tied to the accident influence how much rates rise. A minor collision may lead to a smaller increase compared to a more costly or injurious accident.
State Laws and Regulations: Some states limit how much insurers can raise rates after certain types of claims or require notification periods before increases take effect.
Insurance Company Policies: Different insurers have varying algorithms and risk models, leading to considerable variation in how much your rates might increase. Some offer accident forgiveness programs that can prevent rate hikes after a first accident.
Driver Profile: Younger drivers, those with previous claims, or owners of expensive vehicles tend to face steeper increases.

How Long Does the Increase Last?

After an accident, your auto insurance rates can remain elevated for three to five years. This period depends on your state and insurer. Maintaining a clean driving record during this time is crucial to seeing your rates gradually return to normal levels.

Ways to Mitigate Insurance Increases

Accident Forgiveness: Some insurers offer accident forgiveness which prevents your first at-fault accident from affecting your premium. This usually requires adding a rider and may increase your base rate slightly.
Defensive Driving Courses: Completing a defensive driving class can sometimes earn you discounts and help offset rate hikes.
Adjust Coverage and Deductibles: Increasing your deductibles or modifying your coverage levels can lower your premiums and reduce the overall cost after an accident-related increase.

Protect Your Wallet with a Smart Auto Insurance Review!

Don’t let an accident catch you off guard with high insurance premiums. Contact CF&P Insurance Brokers today at (925) 956-7700 for a personalized auto insurance policy review. Our experts will help you understand your current coverage, explore available discounts, and develop strategies to minimize rate increases after an accident. Safeguard your budget and get the best protection for your needs, contact us today!

Frequently Asked Questions (FAQs)

How much will my auto insurance go up after my first accident?

Typically, rates increase between 20% and 30% for minor at-fault accidents but can be higher depending on severity and insurer policies.
Do rates go up even if the accident isn’t my fault?

Yes, in some states and with some insurers, rates may increase after not-at-fault accidents due to perceived higher risk.
What is accident forgiveness and how does it work?

Accident forgiveness is a program some insurers offer to prevent your first at-fault accident from raising your premium, often available as a policy add-on.
How long will my rates stay high after an accident?

Premiums typically stay elevated for three to five years before potentially returning to previous levels, assuming no further incidents.

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CF&P Insurance Brokers is a third generation, family owned, independent insurance agency. We pride ourselves on thoroughly understanding your needs and creating long term relationships with our clients by consistently delivering exceptional service and value. Our expertise will help you stay on top of changes affecting the property and casualty insurance industry and your risk management program.