When Does Car Insurance Go Down After an Accident?

Even if you didn't file a claim, your insurance premium can increase after an accident. When will your rate go back down?

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How long does it take for car insurance get cheaper after an accident?


One of the unfortunate consequences of a car crash is the impact on your car insurance premium. After an auto collision that results in an insurance claim, you can expect your rates to rise. Even if you don’t file a claim, your insurance company can raise your rates for as long as five years after an accident. Let’s examine why this is, by how much rates typically increase after an accident, and how long rates take to decrease after a collision.


Car insurance rates after an accident
  1. By how much does car insurance go up after an accident?
  2. Why do car insurance companies raise rates after an accident?
  3. When do rates decrease after an accident?
  4. Additional resources




By how much do car insurance rates go up after an accident?


Most insurance companies charge extra for three to five years after an at-fault accident in which damages to your vehicle exceed $2,000. To demonstrate the financial ramifications of a collision, we gathered car insurance quotes from some of America's most popular insurance companies (methodology). See below how much an accident costs over a three-year period.


AVERAGE INSURANCE RATE INCREASE AFTER AN AT-FAULT ACCIDENT: YEAR ONE
Insurance ProviderYear 1 IncreaseInsurance Premium
Allstate$9$3,015
Farmers$301$2,636
GEICO$457$2,314
Liberty Mutual$605$2,776
Nationwide$374$1,836
Progressive$30$2,720
State Farm$973$2,849
USAA$221$1,304


AVERAGE AUTO INSURANCE PRICE INCREASE AFTER AN AT-FAULT ACCIDENT: YEAR TWO
Insurance ProviderYear 2 IncreaseInsurance Premium
Allstate$17$3,032
Farmers$602$3,238
GEICO$913$3,227
Liberty Mutual$1,210$3,985
Nationwide$749$2,584
Progressive$61$2,781
State Farm$1,945$4,794
USAA$442$1,747


AVERAGE INSURANCE RATE INCREASE AFTER AN AT-FAULT ACCIDENT: YEAR THREE
Insurance ProviderYear 3 IncreaseInsurance Premium
Allstate$26$3,041
Farmers$903$3,539
GEICO$1,370$3,684
Liberty Mutual$1,815$4,590
Nationwide$1,123$2,958
Progressive$91$2,812
State Farm$2,918$5,767
USAA$664$1,968


State Farm is typically the most expensive car insurance company after an at-fault accident. Allstate is the cheapest.



AVERAGE INSURANCE PREMIUM INCREASE AFTER AN AT-FAULT COLLISION
Insurance ProviderAverage Increase After an Accident
Allstate$52
Farmers$1,806
GEICO$2,740
Liberty Mutual$3,630
Nationwide$2,246
Progressive$182
State Farm$5,835
USAA$1,327




Why do insurance rates go up after an accident?


Auto insurance rates commonly increase after an accident for a few reasons:


1. The fees associated with filing a claim

Surcharges triggered by an at-fault accident include the cost of the claim adjuster's time, fees related to the claims representatives, and the cost of parts and labor. These fees usually aren’t accounted for in your monthly premium, and thus increase if you utilize them.

2. The added risk

Historical data show drivers who have been in a crash are more likely to get into another accident. These drivers present more risk — and potentially more expense — to insurance companies than do clients with clean driving histories. An insurance company accounts for this added risk by increasing premiums for drivers involved in collisions.





When do insurance rates decrease after a car crash?


While timing may vary based on location and the circumstances surrounding the incident, most insurance companies will drop rates three to five years after the incident. If the collision occurs long before your policy renewal date, this penalty period can stretch beyond the typical three-to-five-year window.

If the penalty period for an accident is set to expire in January but your policy ends in June, the accident will not be removed from your insurance bill until your policy renews — or you specifically ask. If you have an accident on your insurance record, keep track of the date and chargeable time. Your insurance company will not do this for you. This can help you avoid a longer-than-necessary surcharge period.

Three years is a common penalty period following a property damage or collision claim. You may be penalized longer for the below violations:

  • DUI/DWI
  • Bodily injury claim
  • Reckless driving
  • Multiple — or excessive — violations within a certain time
  • An accident resulting in serious bodily harm or death




How to find cheap car insurance after an accident


The amount by which car insurance premiums rise after an accident depends on many variables. The specifics of the accident, your vehicle, you, and most importantly, your insurance company.

If you’re being charged a significant amount for an accident, enter your zip code below to see estimates from other companies across the US.




Find an affordable car insurance policy!

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