How Much Does Insurance Increase After An Accident? Have you ever wondered what happens to your car insurance rates after a crash?
It’s a common concern, but don’t worry—we’ve got the scoop. Yes, rates tend to go up, but what most people do not know is that the increase is different for everyone.
Think of your insurance costs like a recipe: car type, age, insurance score, and where you live are the ingredients. They also peek at your driving history. Now, how much are we talking about? On average, it’s about $2,212 per year, but it varies by insurance company.
But the good news is that you can do something about it. Some insurers give discounts if you make your car safer to prevent future accidents.
We get it—accidents are already stressful, and worrying about insurance doesn’t help. Brace yourself, though; if it’s your fault, the increase is usually a bit more.
Stick with us as we check out ways to ease that stress and maybe save some cash on your post-accident car insurance.
How Long Does An Accident Stay On Your Driving Record?
Experiencing multiple accidents and receiving convictions for several traffic violations will inevitably lead to an increase in your insurance rates.
A driver with a record reflecting more than one traffic violation or accident is perceived as high-risk, indicating a greater likelihood of filing future insurance claims.
Why Do Insurance Rates Go Up After An Accident?
Insurance rates go up after an accident because a rate increase protects insurance companies from losing money. You need to understand that car insurance is calculated based on risk.
Drivers who are continually involved in an accident are likely to be involved in another traffic violation. For this reason, the insurance company will increase your premium to review the higher risk taken to insure you.
What Is The Average Cost Of A Car Insurance After An Accident?
As mentioned earlier, the average cost of car insurance after an accident depends on your insurance company. However, the national average cost of car insurance is $1548 a year, and a driver’s car insurance rate can increase by 50 percent.
Also, bear in mind that an accident can remain on your record for three to five years. Also, your car insurance rate might increase depending on who caused the accident, how severe the accident is, and how long ago the accident occurred.
When Does Insurance Rate Go Down After An Accident?
After your insurance rate goes up due to an accident, you can expect it to go down over the next three to five years. For example, the average cost drops from $316 a month to $261 a month during this time. How long your rates stay high also depends on how much damage happened and how serious the accident was.
How To Reduce Your Car Insurance Rates After An Accident
There are steps you can take to reduce your insurance rates, and they include.
Reduce Your Coverage
To bring down your monthly insurance cost, begin by cutting back on your coverage. You can do this by removing some parts of your auto insurance policy, like collision coverage and comprehensive coverage.
Take A Defensive Driving Course
When you take a defensive driving course, you learn how to drive safely and avoid accidents. Many insurance companies give discounts to drivers who complete these courses.
Shop Around For A Better Price
Consider switching to a different insurance company for a more favorable price. While insurers have their methods for setting your monthly premium, exploring a new insurer may help you find a rate that suits your budget.
Keep in mind, though, that not all insurance companies accept high-risk drivers.
Increase Your Deductible
Think of deductibles as the money you pay from your pocket before insurance starts helping with a claim. If you choose a higher deductible, your monthly payment (premium) will be lower.
So, if you increase your deductible, it can help keep your insurance costs lower after an accident.
Frequently Asked Questions
How Much Does Insurance Go Up After A First Accident?
This depends on your precious driving record, how much damage the accident caused, who caused the accident, and the state you reside in.
Can I Switch Car Insurance After An Accident?
Yes, you can change your car insurance even after an accident. It’s all about finding an insurance company that suits you better. If you find one that fits your needs, feel free to make the switch.
Does The Type Of Injury In An Accident Impact The Rate Increase?
If your accident caused injuries, expect your insurance costs to go up.
Will My Rates Increase If The Accident Was Not My Fault?
Yes, your insurance will still increase even if the accident was not your fault. But the price increase will be smaller compared to when the accident is your fault.