Sun. Jun 23rd, 2024

Generally, the rate of your car insurance would increase after an accident for which you are logically at fault. This is because the issuers will consider you as a high-risk driver and because of this you are most likely to file other claims in the future.

(How Much Will My Car Insurance Go Up After an Accident?)

The amount that would top up your premium after an at-fault accident is determined by some factors, such as your auto insurance provider, driving record, the history of your claims, and your geographical location. If your age falls on or under age 25, you should expect a higher rate of increase.

In this article, I will cover how much increase will happen to your premium and also some other related useful information.

Read on!

Why Do Insurance Rates Go Up After An Accident?

The insurance company does not just increase rates just to make it tough for the service users, but they increase the premium rate based on some factors such as if you have an at-fault accident. After an at-fault accident, they consider you as a riskier driver and also expect you to come in subsequent times for claims. Apart from involving in an accident for which you are at fault, some other factors are likewise responsible for causing an increase in the rate. An example is if, within a short time, you have piled a high frequency of filing claims.

The bottom line is if your insurance company considers you as being highly risky to insure, they would doge the risk by giving you high premiums.

If after the accident, your premium rate got increased, do not fret; after you continue using the car without at-fault accidents or moving violations, the premiums would go down. This is true for most auto insurance companies 

After seeing your auto insurance policy rate increase after an accident, you may desire to try to find another insurance provider and see their quotes. With this initiative, you could reduce the cost of the premiums.

Though different auto insurance charges differently, you will see lesser premiums from new companies. But you must know that you will still need to provide your details about your previous claims and they would capitalize on that to determine quotes for you, which could cause an increase in premium rates as well. However, despite this quotes can never be the same with all auto insurance companies and some would have lesser premium rates than others.

How Much Will My Rate Go Up Based On My Car Insurance Company?

Generally, all auto insurance companies would increase their rates after you got in an accident for which you are at fault. However, the amount charged is not the same in all insurance companies, and some are lesser than others.

Following is the account of the average auto insurance rate from top auto insurance providers in the US, covering quotes for before and after an accident.

AUTO INSURANCE COMPANYAVERAGE ANNUAL PREMIUM BEFORE AN AT-FAULT ACCIDENTAVERAGE ANNUAL PREMIUM AFTER AN AT-FAULT ACCIDENT
AAA$2,389$3,453
Allstate$2,438$3,149
American Family$1,627$2,301
Erie$1,321$1,562
Farmers$1,524$2,144
Geico$1,297$1,900
Nationwide$1,383$1,802
Progressive$1,561$2,507
State Farm$1,397$1,769
Travelers$1,447$1,975
USA$1,209$1,742

By Manali