Insurance After an Accident Cost: Average Rates & What Drives Them

After an at-fault accident, most drivers see their premium rise at the next renewal. How much depends on who was at fault, how bad the claim was, which insurer you have, and where you live. A surcharge normally stays on the policy for several years and tends to shrink as time passes.

Published estimates disagree more than you might expect. Some measure full coverage, others liability only, and each uses its own sample of drivers. This guide lays out each source on its own terms so you can see why a single number can mislead.

NerdWallet compared a full-coverage policy for a driver with a clean record and the same driver after one at-fault accident.

The clean-record driver pays $2,361/yr, and the driver with an accident pays $3,524/yr. The difference is the $1,163/yr in the headline. NerdWallet's accident was a single at-fault crash with a moderate amount of property damage and no injuries, so a more serious claim could cost more.

Insurers raise rates by very different amounts. NerdWallet's insurer comparison lists the annual premium for a driver with one at-fault accident at several large companies.

Allstate is the highest of the four listed, at $5,018/yr, and State Farm is the lowest, at $2,565/yr. These are dollar totals, so they mix two things: what the company charged before the accident and how much it added.

MoneyGeek measures only the added part, as a percentage.

State Farm raised rates by 24.3% in MoneyGeek's analysis, and Progressive by 58.1%. The spread between the lowest and highest insurer is wide. A big percentage at a cheap company can still end up below a small percentage at an expensive one, so look at the final price, not only the increase.

Insurify publishes average monthly liability quotes after an at-fault accident, by state. These are liability-only figures, so they are lower than full-coverage totals.

Texas is the lowest of the five at $62/mo, and Maryland the highest at $151/mo. State law shapes the result. Some states limit or prohibit rate increases after accidents that were not your fault, and states differ in how long an accident stays on your record.

Four publishers give four annual estimates of the added cost.

The range runs from $396/yr to $1,163/yr. Insurify's figure is liability only, so it is the lowest. NerdWallet's is for full coverage, which includes collision and comprehensive. Full-coverage premiums are larger to begin with, so the dollar increase may be larger too. MoneyGeek and AutoInsurance.com sit between them. Each uses its own drivers, vehicles, and ZIP codes. None of them is a quote for you.

• Fault. At-fault accidents usually raise rates more than not-at-fault ones, though not-at-fault claims can also affect a renewal.
• Claim size. More damage or injuries generally means a larger surcharge.
• Insurer. As the tables show, companies diverge sharply.
• State. Rules on surcharges and on how long they last differ.
• Driving history. A prior violation or claim can make the increase bigger.
• Coverage level. The same percentage on a full-coverage policy produces a larger dollar increase.

Compare quotes from several insurers soon after the accident, since companies treat the same crash differently. Ask about accident forgiveness, which is optional cover that can prevent a surcharge after a first at-fault accident, and note that it generally has to be in place before the accident happens. Raising a deductible can lower the premium. A defensive driving course may earn a discount in some states. Ask your insurer what it counts as a surchargeable accident, because rules on small claims differ.

Your policy may require you to report an accident even if you plan to pay for the damage yourself, and failing to report can create problems later. A licensed insurance agent or broker can explain your policy's reporting rules.

The surcharge usually lasts several years, though the exact period depends on the insurer and the state. Some insurers look back further than others. Premiums tend to ease as the accident ages, and a clean record afterward helps. Ask your insurer when your accident will drop off its rating.