2026-04-11 · personal, auto
Updated: 2026-08-15
By InsuraFAQ Editorial Team · Reviewed for accuracy
How a Car Accident Affects Your Insurance
Key Takeaways
- An accident can affect your premium; the result depends on fault, your state, and your insurer.
- The size and duration of any accident-related surcharge depend on the insurer and applicable state rules.
- Accident forgiveness may prevent an accident-related surcharge, but terms, eligibility, and fees differ by insurer.
- Ask your insurer how a comprehensive claim could affect your premium.
- 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?
An at-fault accident can raise your rate, but the outcome depends on your insurer and state. The longer answer depends on the type of claim.
At-Fault Accidents
If you caused the accident, your insurer may apply a surcharge at renewal. Your driving history is one of the factors an insurer may use in rating your policy. 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
Comprehensive coverage can cover events such as hail, theft, vandalism, and animal strikes, subject to policy terms. Ask your insurer whether a claim, including a glass claim, may affect your premium.
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. The NAIC explains that insurers use their own rating systems and may consider driving records. An accident’s effect on a particular renewal is not a fixed percentage. 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.
Ask your insurer how long an accident-related surcharge applies under its rating rules and your state’s requirements. 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 is one factor that may affect how an accident influences your insurance premium.
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 may prevent an eligible accident from triggering an accident-related surcharge. Other rating factors can still change your premium. 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?
The period considered for insurance pricing depends on the insurer and applicable state rules. Your state motor vehicle department may retain records for a different period. Ask your insurer how long a surcharge applies.
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, ask your insurer how it will rate the accident. For very minor damage, drivers sometimes choose to handle repairs out of pocket instead of 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. A new insurer may consider the accident in its rating, 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.