How Much Does Car Insurance Go Up After an Accident?

Okay, real talk: I used to think car insurance was just a boring grown-up thing you signed up for, paid once a month, and forgot about—until I got into an accident. That’s when I found out just how real it can get. And yeah, it definitely made my insurance rates take a hit.

But here’s the thing no one tells you: how much your car insurance goes up after an accident isn’t a flat number. It depends on a bunch of stuff—like who was at fault, how bad the accident was, and even which state you’re in.

Let me take you back to that day.

I was on my way to work, running late (classic), and trying to sip coffee while navigating morning traffic. You already know where this is going. I misjudged how fast the guy in front of me was stopping and—bam—rear-ended him. Not hard, but enough to leave a dent and exchange insurance info. My first accident ever. I was shook.

Now, what I didn’t know? Even a relatively minor accident like that can jack up your rates big time. Mine? Shot up nearly 40%. No joke. And I’ve got decent coverage with a well-known insurance company.

How Much Does Car Insurance Really Go Up After an Accident?

Most people see a rate increase of 20% to 50% after an at-fault accident.

Some data from industry sources like the Insurance Information Institute shows that on average, premiums rise by about $400 to $800 per year depending on your insurer and location. That’s no small chunk of change, especially if you're already trying to keep your monthly bills under control.

If you’re not at fault? Your rates might still go up. I know. It’s messed up. But some insurers see you as a higher risk even if you didn’t cause the accident.

Factors That Affect How Much Your Car Insurance Increases

1. Who’s at Fault?

If you’re at fault, your insurance rates will almost definitely go up. Most companies hit you hardest for that first one. If it’s a not-at-fault accident, it might not affect your premium, but don’t assume. Always ask.

2. Severity of the Accident

Fender benders are one thing. But if there are injuries, major property damage, or multiple cars involved, the price hike can be brutal. We're talking 50%+ increases, and some folks even get dropped by their insurance carrier.

3. Your Driving History

Had a clean record before the accident? You might get a bit of grace. Some insurers offer accident forgiveness, which can keep your first incident from affecting your premium.

But if this is your second or third oopsie? Yeah… expect that premium to blow up.

4. Your Location

Some states regulate rate hikes more strictly than others. I live in a state where insurers are pretty much allowed to go wild after an at-fault accident, so I felt the full force. States like California and Massachusetts have more protections in place, though.

5. Your Insurance Provider’s Policy

Some insurers are just more lenient than others. I called around after my rates went up, and a few quotes came in way lower than what I was suddenly paying. So yeah, shopping around after an accident? Highly recommend.

What Is Accident Forgiveness and Is It Worth It?

Yes. And I wish I’d had it.

Some insurers offer accident forgiveness for your first at-fault accident. You usually have to be with the company for a while or pay extra for the feature. But it can save you hundreds—maybe even thousands—over time.

For example, a friend of mine had a similar accident, but he had forgiveness built into his policy. His rates stayed the same. I was both impressed and jealous.

How Long Do Higher Insurance Rates Last After an Accident?

Typically, 3 to 5 years.

That’s right—you don’t just pay more for a few months. That higher premium sticks around for a while. And it’s not like it automatically disappears at the 3-year mark. You have to stay claim-free and shop around to lower it again.

Some insurers drop surcharges after 3 years if you maintain a clean record. Others keep that higher rate baked into your premium until you change providers.

What I’d Do Differently Next Time

If I could rewind, here’s what I would’ve done:

• Ask my insurer about accident forgiveness BEFORE anything happened.
• Take photos and document everything at the scene.
• Get a few quotes after filing a claim.
• Raise my deductible (if you’re comfortable with the risk).
• Consider usage-based insurance programs (they actually helped me save later).

Bonus Tip: Bundle Your Insurance Policies

One of the only silver linings after my accident? I called my provider and bundled in my renters insurance. That gave me a small discount—like 10%. Not huge, but when your rates jump 40%, every little bit helps.

Final Thoughts

Look, accidents happen. No one’s perfect. And yeah, your insurance will probably go up if you're at fault. But it’s not the end of the world—and you can take steps to soften the blow.

Do your research. Ask questions. Shop around. And for the love of all things caffeinated, don’t sip hot coffee while driving through morning traffic.