How Much Does Car Insurance Go Up After an Accident?

You’ve been in an accident – what now? Beyond the stress of repairs and recovery, one question looms large: How much will your car insurance increase?

At The Personal Injury Lawyers™, we’ve seen the financial fallout of crashes firsthand. In this article, we’ll break down what happens to your premiums after an accident, the factors at play, and legal strategies to protect your rights and wallet.

How Car Insurance Rates Typically Change After an Accident

An accident on your record often leads to higher car insurance premiums, but the increase depends on the crash’s severity and fault. Here’s what you can expect:

• Minor accident (e.g., fender bender, property damage only): ~20–30% increase
• Major accident (e.g., significant damage, injuries): ~50–100% increase
• Not-at-fault accident: 0–10% increase (varies by state and insurer)

To put this in perspective, let’s look at average annual premiums before and after a minor accident in select states (based on 2025 data estimates from insure.com and valuepenguin):

Note that these are averages. Your increase depends on your insurer and circumstances.

Key Factors That Influence Rate Increases

Several factors determine how much your premium spikes after an accident:

• Who was at fault: If you’re deemed responsible, expect a steeper hike. Not-at-fault drivers may see minimal or no increase, depending on state laws.
• Type of accident: Accidents involving bodily injury or DUI convictions lead to larger premium jumps than property damage alone.
• Your driving history: A clean record before the accident may soften the blow, while prior violations amplify the increase.
• Your state’s insurance laws: States like Michigan and Florida have no-fault systems, meaning your premiums may rise regardless of fault.
• Your insurance provider’s policies: Some insurers are more lenient, while others impose strict surcharges.

In no-fault states like Florida or Michigan, your premiums may rise even if you weren’t responsible. Check your policy and state laws to understand your risk.

How Long Will the Increase Last?

Most premium increases last 3–5 years, depending on your insurer and state regulations.

Insurance companies use a “points” system to track accidents and violations, with each incident adding points to your record. These points gradually fall over time, typically after three years for minor accidents or five for major ones.

Safe driving during this period can help your rates return to normal faster.

What to Do If You’re Not at Fault

If you weren’t at fault, you shouldn’t bear the burden of skyrocketing premiums, but insurers may still try to raise your rates. Here’s how to protect yourself:

• Prove fault: Gather evidence like police reports, witness statements, and photos to establish the other driver’s liability. This can prevent unwarranted rate hikes.
• Contact a personal injury lawyer: A lawyer can ensure the at-fault party’s insurance covers your damages, shielding your premiums from increases. They’ll also fight if your insurer unfairly raises your rates.

Don’t let insurers quietly raise your rates, especially when you weren’t at fault. A car accident lawyer can protect both your rights and your financial future.

Special Cases: Accidents Involving Rideshare, Rental, or Company Vehicles

Not all car accidents affect personal insurance the same way. If you were driving a rideshare service, a rental car, or a company vehicle at the time of the crash, your auto policy may not even be the primary source of coverage.

If You Were Driving for Uber, Lyft, or Another Rideshare Service

Most personal auto insurance policies exclude coverage when you’re driving for commercial purposes, such as picking up passengers for Uber or Lyft. However, both companies provide limited liability and collision coverage while you’re working, depending on your status during the ride:

• App on, no passenger: Limited liability coverage from the rideshare company, but usually no collision.
• Passenger en route or on board: Full commercial coverage applies through the rideshare company.
• App off: Your personal insurance is fully responsible.

If the accident occurs while rideshare coverage is in effect, your personal premiums usually won’t be affected. However, if you didn’t disclose to your insurer that you drive for a rideshare service, they could deny future coverage or drop you entirely.

Consider purchasing rideshare-specific insurance to fill in coverage gaps and avoid unexpected premium hikes.

If You Were Driving a Rental Car

When driving a rental, whose insurance applies depends on several factors:

• You declined rental insurance: Your personal policy may cover rental insurance, but it depends on your coverage.
• You accepted rental insurance (CDW): The rental company’s insurance may absorb the costs, potentially shielding your personal policy from involvement.
• You used a credit card with rental coverage: Some credit cards offer secondary coverage, which may reduce your out-of-pocket expenses.

If your personal insurer ends up covering the damages (even if it’s just reimbursed later), the accident can appear on your record and may raise your rates. On the other hand, if the rental company’s or credit card’s policy pays everything, your insurer may never get involved.

Always check whether your credit card or personal policy includes rental car coverage before declining the rental company’s insurance.

If You Were in a Company Vehicle or on Work Time

When you’re driving a company car or driving for work-related purposes, your employer’s commercial auto policy is usually the primary insurance. This includes sales calls, deliveries, and traveling between job sites.

In most cases, your personal insurance won’t be involved and, therefore, your personal premium should remain unchanged. However, if you were using your vehicle for work and your employer lacks adequate coverage, your insurer might be pulled in as a secondary provider, potentially affecting your rates.

Ask your employer whether you’re covered under their commercial auto policy, especially if you frequently drive for work. If not, consider a business-use endorsement on your personal policy.

Can You Prevent or Reduce an Increase?

While you can’t always avoid a rate hike after an accident, there are several effective ways to minimize the financial impact. Insurers consider many factors, and it is possible to convince them to take your side and reduce your premium.

Take Advantage of Accident Forgiveness Programs

Some insurance companies offer accident forgiveness to eligible drivers. This means your first at-fault accident won’t raise your premiums, as long as you meet certain conditions, like being a long-time customer or having a clean driving history.

However, note that insurers will rarely advertise this benefit even if they offer it. Ask your provider directly if they can provide it or if it can be added to your policy.

Complete a Defensive Driving Course

In some cases, enrolling in a state-approved defensive driving course can help offset insurance points or earn a discount on your premium. These courses demonstrate lower risk to insurers while granting the practical benefit of improving driving skills and habits.

Some states may even remove points from your record when you complete such courses, which can lead to faster premium recovery.

Compare and Switch Insurance Providers

Your current insurer isn’t your only option. After an accident, it’s smart to shop around and compare quotes.

Some companies are more lenient with accident history or offer better policies for post-accident drivers. Use a comparison tool or speak to a broker who can find providers more sympathetic to your driving record.

Consider Raising Your Deductible

Another way to bring down your premium is to increase your deductible—the amount you pay out of pocket before insurance kicks in. A higher deductible usually means a lower monthly premium.

Be careful, however: only do this if you can comfortably afford the higher out-of-pocket expense in case of another accident.

When Should You Pursue a Claim?

Many drivers hesitate to file a claim after an accident, fearing premium increases. However, avoiding a claim could mean missing out on compensation for injuries or damages, especially if the other party was at fault.

Here’s what you need to know:

• Rate hikes and legal claims: Filing a claim doesn’t automatically raise your rates, especially if you’re not at fault. A personal injury lawyer can help ensure the at-fault party’s insurance covers your costs, minimizing the impact on your premiums.
• Don’t avoid filing out of fear: If you’re injured, pursuing a claim is critical to cover medical bills, lost wages, and other losses. The fear of higher premiums shouldn’t stop you from seeking justice.
• Bad faith by insurers: If your insurer unfairly raises your rates or denies a valid claim, they may be acting in bad faith. A lawyer can hold them accountable, potentially recovering additional damages.

We’ve seen insurers exploit drivers’ fears of rate hikes to discourage legitimate claims. Don’t let this happen to you; consult a lawyer from The Personal Injury Lawyers™ to protect your rights.

Need to Make a Car Accident Insurance Claim? Call The Personal Injury Lawyers™

Navigating the aftermath of a car accident can be overwhelming, and understanding its impact on your car insurance premiums is just one piece of the puzzle. If you’ve been in an accident and are concerned about rising rates, or if you believe your insurer is acting unfairly, don’t face it alone.

The Personal Injury Lawyers™ are here to help. We offer expert legal guidance to protect your rights, minimize financial fallout, and ensure you receive the compensation you deserve.
Contact us today at (312) 999-9990 for a free consultation and let us help you navigate your claim with confidence.