No one wants to have an accident. You can get hurt, you can ruin your beloved vehicle, you may have to miss work and lose money and worse of all- your insurance rates will go up! No one wants their insurance rates to go up! Everyone already thinks they are paying too much, so why would you want to pay more? Also, many people wonder why their insurance rates would increase due to an accident when they’ve never been in a accident before. You’ve paid tens of thousands of dollars over the years to insurance companies and you’ve never used your insurance. Now, with one little accident, the insurance company wants to raise your rates.
It doesn’t seem fair, but there’s not much we can do about it. If we can’t change it, we can at least educate ourselves and know what will happen when we have an accident. Below is a list of common questions and our answers to those questions. Our hope is to clarify and answer your questions so that you know what to expect in the case you ever have a car accident.
How Much Will My Insurance Go Up After An Accident?
Your insurance will go up an average of 41% after an accident. It’s important to note that there are a number of different factors that will determine how much your insurance increases. Things like age of the driver, the severity of the accident, if you have any other accidents and many more.
How much does insurance go up after an accident for a teenager? If your teenage driver gets into an accident, get ready for huge rate increases. Insurance companies know that teenage drivers are already risky drivers and more prone to get in accidents. Teenage drivers insurance rates are already going to be high. Add an accident to their record and this shows the insurance company that they are very risky drivers and much more likely to get into another accident. Car insurance companies know they will most likely be paying out money for more accidents in the very near future. Because of this fact, you can expect a substantial increase rate.
More paid out the more rates go up
Many insurance companies will calculate the rate increase of your car insurance based on the amount they paid out for your accident. In other words, a big accident equals a big rate increase. If they pay out $100,000 for your accident they are going to want to get back some of that money, so they’ll raise your rates a great deal to help them do that.
Varies depending on the type of accident
The type of accident you had can also affect how much your rates go up. Was it an accident with no other vehicles or property involved? Was it an accident were lots of people were injured? Did it involve many different vehicles? All these things can affect how much the insurance company decides to raise your rate.
Varies from company to company
There are some companies that don’t like accidents at all. If you have an accident with them they decide they don’t like you and they will punish you accordingly. There are other companies, like Progressive insurance, that are priced very well for people that have had accidents. It’s never a bad idea to shop around after an accident to make sure you have the best rate. Click here to start a new auto insurance quote.
Get more than one and the price really goes up
How much does insurance go up for more than 1 accident? If you think your insurance rate is high after one accident, just wait and see what happens when you have 2 accidents on your record. Car insurance companies will significantly increase your insurance rate when you have 2 or more accidents on your record. With 2 accidents on your record, you’re basically telling your insurance company that you are going to keep costing them lots of money as they keep paying out money for all your accidents. If they are going to be paying out lots of money for you, then they are going to try to collect lots of money from you.
How Much Does Insurance Go Up After A Minor Accident?
Your insurance will not increase a great deal for a minor accident. Many insurance companies automatically offer accident forgiveness for minor accidents. The ones that don’t offer accident forgiveness usually will not increase your insurance premium a significant amount due to a minor accident. While shopping for insurance, check to see which companies offer accident forgiveness. With some companies it will come automatically, with others you’ll have to pay extra to have this feature.
Which car insurance companies offer accident forgiveness?
- State Farm
Will a Not At-Fault Accident Raise My Rates?
Surprising to many people, yes, not at-fault accidents can raise your rates. Even more, some companies will not even take you if you have more than 2 not at-fault accidents. There are a number of different reasons for this. A primary reason for this is that research shows that those with many not at-fault accidents are more likely to get in at-fault accidents. Remember, a good driver not only knows how to not get in accidents themselves, but a good driver also is a defensive driver. A driver that is very aware of their surroundings and will get out of a bad situation, even ones they didn’t cause.
For this reason, it’s encouraged to file a claim through the other parties insurance should they hit you in an accident. By doing so, this accident will not show up on your insurance record and will not be around to hurt your insurance rates.
When Does Car Insurance Go Down After an Accident?
The number 1 question we get after someone gets in an accident is “when do accidents fall off insurance?”.
It takes 3 to 5 years for your car insurance to go down after an accident. Some companies are 3 years and some are 5. Many companies are trending to the 5 year mark and those that used to be 3 are now moving to 5 years.
How Much Does My Insurance Go Up After An Accident?
Some companies, like Progressive, will allow you to remove your accident from your record exactly at the 3 year mark, even if your policy is mid-term. However, most companies will not remove an accident mid-way through a policy term. They will make you wait until your policy renews (even if that’s 9 months after your accident should fall off) to remove your accident and lower your rates.
Should I Even File A Claim?
You should not file a car insurance claim for every little thing that happens to your car. Visit this page to get more information on this topic. Don’t get claim happy and file claim after claim, even if they aren’t your fault. Obviously, your car insurance is there to help you in the even your car is damaged, but you need to be smart and realize that the payout you get from the insurance company can sometimes end up costing you a lot more money in the long run.
Work with an experienced insurance agent that can help consult you in these matters.
Your insurance company will not raise your rates because of an accident until your policy renews. So if your policy runs from January to January each year and you have an accident in March; your rate wont go up until the next January.
Most companies will not drop you for 1 accident. Many people become concerned after an accident. Thinking their insurance company is going to drop them. It is extremely rare for any car insurance company to drop you after 1 accident.
Not at-fault accidents can still raise your rates– As discussed above, these types of accidents can still raise your rates. Be careful and thoughtful when filing any type of claim.