Key Takeaways
- Car insurance after an accident can increase your full coverage rates by $911 per year or around $76 per month
- All car accidents can raise your car insurance rates, regardless of whether you’re at fault or not.
- Accident forgiveness is available through some providers and prevents insurance rates from increasing after a driver’s first accident.
In this article, we at the MarketWatch Guides team show how insurance rates increase after an accident. We’ll cover how an accident changes rates for motorists with a clean driving record and those who get a recent speeding ticket or have a prior accident. You’ll also learn average rate increases by state, including the most affordable provider in each state.
Unless otherwise noted, cost averages in this article come from quotes for a 35-year-old driver with good credit and a clean driving record. Insurance rates may vary by driver profile.
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Insurance Increases: Before and After an Accident
On average, rates for a 35-year-old driver with good credit and a clean driving record could increase by 45% or more after an at-fault accident. State Farm members pay the lowest average rates after an accident ($1,953 per year), while American Family policyholders receive the lowest rate hike at just 17%.
| No Accident (Clean Record) | One Recent Accident | % Increase | |
|---|---|---|---|
| American Family Insurance | $1,851 | $2,169 | 17% |
| State Farm | $1,657 | $1,953 | 18% |
| Auto-Owners Insurance | $1,619 | $2,095 | 29% |
| Travelers | $1,595 | $2,110 | 32% |
| Erie Insurance | $1,458 | $1,962 | 35% |
| USAA | $1,512 | $2,187 | 45% |
| Progressive | $2,030 | $3,052 | 50% |
| Farmers | $3,169 | $4,917 | 55% |
| Allstate | $2,598 | $4,094 | 58% |
| Nationwide | $1,433 | $2,368 | 65% |
| Geico | $1,596 | $2,694 | 69% |
| Market Average | $2,008 | $2,919 | 45% |
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Insurance Increases After a Recent Speeding Ticket and an Accident
In 2022, drivers with a recent speeding ticket could pay as much as 54% more for full-coverage car insurance after being involved in an accident. Drivers with the same profile pay the lowest average rates through Erie Insurance at $1,894 per year or $158 monthly — a 22% premium increase. Rates may vary based on location, age, additional traffic violations, vehicle and other factors.
| Recent Speeding Ticket | Ticket and One Recent Accident | % Increase | |
|---|---|---|---|
| American Family Insurance | $2,061 | $2,259 | 10% |
| State Farm | $1,794 | $2,077 | 16% |
| Erie Insurance | $1,549 | $1,894 | 22% |
| Auto-Owners Insurance | $2,119 | $2,708 | 28% |
| USAA | $1,413 | $1,903 | 35% |
| Farmers | $3,071 | $4,193 | 37% |
| Nationwide | $1,656 | $2,366 | 43% |
| Travelers | $2,023 | $2,612 | 44% |
| Progressive | $2,311 | $3,329 | 44% |
| Allstate | $2,746 | $4,173 | 52% |
| Geico | $1,856 | $2,836 | 54% |
| Market Average | $2,313 | $3,212 | 39% |
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Insurance Increases After Multiple Accidents
A second at-fault accident drives up insurance rates even more. It can mean drivers pay as much as 56% more for full-coverage car insurance. For drivers with two at-fault accidents, State Farm offers the lowest annual rates at $2,084 per year or $174 per month.
| One Recent Accident | Two Recent Accidents | % Increase | |
|---|---|---|---|
| State Farm | $1,882 | $2,084 | 11% |
| American Family Insurance | $1,935 | $2,408 | 24% |
| Auto-Owners Insurance | $1,995 | $2,777 | 29% |
| Allstate | $3,598 | $4,724 | 31% |
| Erie Insurance | $1,832 | $2,417 | 32% |
| Travelers | $2,193 | $2,939 | 34% |
| Nationwide | $2,063 | $2,797 | 36% |
| Progressive | $2,822 | $3,977 | 41% |
| Farmers | $3,567 | $5,243 | 47% |
| Geico | $2,364 | $3,509 | 48% |
| USAA | $1,647 | $2,565 | 56% |
| Market Average | $2,689 | $3,761 | 40% |
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Insurance Increases After an Accident: Rates by State
Drivers in all states pay higher rates after an at-fault car accident. Massachusetts residents get hit by the biggest rate hike, an average increase of 101%. Maine residents pay just $1,491 per year or $125 per month after an accident, while Michigan drivers could end up paying as much as $6,032 annually or $503 per month.
| Clean Driving Record | One Recent Accident | % Increase | |
|---|---|---|---|
| Alaska | $1,685 | $2,248 | 33% |
| Alabama | $1,775 | $2,498 | 41% |
| Arkansas | $2,038 | $3,001 | 47% |
| Arizona | $2,008 | $2,938 | 46% |
| California | $2,313 | $4,085 | 77% |
| Colorado | $2,173 | $3,040 | 40% |
| Connecticut | $1,919 | $2,699 | 41% |
| Washington, D.C. | $2,218 | $3,235 | 46% |
| Delaware | $2,881 | $3,893 | 35% |
| Florida | $3,244 | $4,608 | 42% |
| Georgia | $1,973 | $2,931 | 49% |
| Hawaii | $1,656 | $2,306 | 39% |
| Idaho | $1,402 | $2,057 | 47% |
| Illinois | $1,541 | $2,193 | 42% |
| Indiana | $1,587 | $2,333 | 47% |
| Iowa | $1,563 | $2,086 | 33% |
| Kansas | $1,918 | $2,924 | 52% |
| Kentucky | $2,522 | $3,655 | 45% |
| Louisiana | $3,040 | $4,423 | 45% |
| Massachusetts | $2,430 | $4,043 | 66% |
| Maryland | $1,833 | $2,958 | 61% |
| Maine | $1,238 | $1,796 | 45% |
| Michigan | $3,643 | $5,204 | 43% |
| Minnesota | $1,766 | $2,528 | 43% |
| Missouri | $2,104 | $2,992 | 42% |
| Mississippi | $1,658 | $2,603 | 57% |
| Montana | $1,979 | $2,848 | 44% |
| Nebraska | $1,871 | $2,679 | 43% |
| Nevada | $2,788 | $4,112 | 47% |
| New Hampshire | $1,362 | $2,088 | 53% |
| New Jersey | $2,513 | $4,127 | 64% |
| New Mexico | $1,943 | $2,720 | 40% |
| New York | $2,088 | $2,863 | 37% |
| North Carolina | $1,627 | $2,756 | 69% |
| North Dakota | $1,916 | $2,431 | 27% |
| Ohio | $1,599 | $2,341 | 46% |
| Oklahoma | $2,278 | $3,066 | 35% |
| Oregon | $1,925 | $2,945 | 53% |
| Pennsylvania | $1,981 | $2,820 | 42% |
| Rhode Island | $2,357 | $2,605 | 11% |
| South Carolina | $1,845 | $2,496 | 35% |
| South Dakota | $2,291 | $3,300 | 44% |
| Tennessee | $1,524 | $2,227 | 46% |
| Texas | $2,205 | $3,365 | 53% |
| Utah | $1,928 | $2,855 | 48% |
| Vermont | $1,199 | $1,722 | 44% |
| Virginia | $1,781 | $2,636 | 48% |
| Washington | $1,616 | $2,320 | 44% |
| Wisconsin | $1,694 | $2,516 | 49% |
| West Virginia | $2,177 | $3,195 | 47% |
| Wyoming | $1,702 | $2,305 | 35% |
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Insurance After an Accident: Cheapest Providers by State
For 35-year-old drivers with good credit and one at-fault, single-vehicle accident, USAA offers the lowest rates in 16 states. For non-military members, State Farm, Progressive and Geico also offer low rates in multiple states.
| Provider | One Recent Accident | |
|---|---|---|
| Alabama | Travelers | $1,815 |
| Alaska | Geico | $1,672 |
| Arizona | Geico | $1,912 |
| Arkansas | State Farm | $1,526 |
| California | USAA | $2,991 |
| Colorado | State Farm | $1,849 |
| Connecticut | Geico | $1,462 |
| Delaware | Travelers | $1,617 |
| Florida | State Farm | $2,075 |
| Georgia | Country Insurance & Financial | $2,006 |
| Hawaii | USAA | $1,444 |
| Idaho | USAA | $1307 |
| Illinois | Pekin Insurance Group | $1,013 |
| Indiana | USAA | $1,360 |
| Iowa | Pekin Insurance Group | $1,027 |
| Kansas | State Farm | $1,862 |
| Kentucky | State Farm | $2,105 |
| Louisiana | Southern Farm Bureau | $2,419 |
| Maine | Auto-Owners Insurance | $1,133 |
| Maryland | Geico | $1,996 |
| Massachusetts | Progressive | $2,627 |
| Michigan | USAA | $2,706 |
| Minnesota | American Family | $1,407 |
| Mississippi | State Farm | $1,715 |
| Missouri | USAA | $1,731 |
| Montana | USAA | $1,434 |
| Nebraska | Auto Owners | $1,937 |
| Nevada | State Farm | $1,596 |
| New Hampshire | Auto Owners | $1,202 |
| New Jersey | New Jersey Manufacturers Group | $1,714 |
| New Mexico | State Farm | $1,600 |
| New York | Progressive | $2,256 |
| North Carolina | Erie Insurance | $1,683 |
| North Dakota | American Family | $1,401 |
| Ohio | Erie Insurance | $1,376 |
| Oklahoma | State Farm | $1,663 |
| Oregon | State Farm | $1,523 |
| Pennsylvania | Travelers | $1,198 |
| Rhode Island | USAA | $1,417 |
| South Carolina | American National Finance Group | $1,028 |
| South Dakota | State Farm | $1,980 |
| Tennessee | Tennessee Farmers | $1,332 |
| Texas | State Farm | $1,568 |
| Utah | State Farm | $1,918 |
| Vermont | Union Mutual | $901 |
| Virginia | Erie Insurance | $1,341 |
| Washington | USAA | $1,446 |
| Washington D.C. | State Farm | $2,088 |
| West Virginia | State Farm | $1,561 |
| Wisconsin | State Farm | $1,373 |
| Wyoming | USAA | $1,470 |
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Why Do Car Insurance Rates Increase After an Accident?
Accidents, even ones in which the driver is not at fault, indicate a heightened risk for insurance companies. The driver may live or drive in an area where a higher number of accidents happen, practice high-risk driving habits or face other risk-increasing factors.
When drivers are involved in accidents, receive traffic tickets or commit moving violations, they’re more likely to require an insurance payout, regardless of coverage type. Insurance companies use a driver’s risk profile to calculate premium rates — and will raise rates if a driver’s risk profile increases.
How Long Does an At-Fault Accident Stay on Your Driving Record?
Most auto accidents remain on a driver’s car insurance record for three to five years. While some accidents may stay on a driver’s record for longer, many insurance companies don’t consider an accident as part of that driver’s insurance report after a certain number of years have passed. The length of time varies by location, accident type and insurer. Speak to your insurance agent to learn more about your state’s traffic laws.
Other Factors That Impact Car Insurance Rates
Outside of driving history, insurance companies look at several data points to determine insurance premiums.
These factors include a driver’s:
- Age: In most states, young drivers will pay higher insurance premiums with or without at-fault accidents or other violations.
- Gender: At certain ages, male drivers pay higher insurance rates than female drivers.
- Credit score: Insurers in many states consider credit history when determining premiums.
- Coverage type: A full-coverage insurance policy has higher rates and coverage levels than minimum (liability) coverage.
- Vehicle: Newer cars, especially those equipped with a variety of safety features, often qualify drivers for reduced car insurance costs.
How To Prevent Rate Increases After an Accident
Accident forgiveness is an insurance company program to help drivers avoid rate increases after their first at-fault or chargeable accident. Accident forgiveness functions as extra coverage, and you would have to buy it on a policy before an accident happens. Some insurance providers allow drivers to earn accident forgiveness through loyalty and safe driving, while others offer it as a policy add-on.
Insurance providers that offer accident forgiveness include:
- Allstate
- Geico
- Liberty Mutual
- Nationwide
- Progressive
- Travelers
- USAA
How To Lower Insurance Rates After an Accident
Drivers with one or more accidents, speeding tickets or other violations on their driving record are likely to be considered high-risk drivers, so they often pay higher rates on average compared to others. However, even high-risk drivers can:
- Take advantage of discount opportunities, such as for students, military members and car owners who set up autopay or pay their premiums in full
- Raise their deductible, which will mean a bigger out-of-pocket cost after an accident but a lower premium cost for the rest of the time
- Bundle their auto insurance with homeowners, renters insurance or another policy under the same company
- Choose less coverage, which will lower their premium cost but means they’ll be less financially protected in the event of an accident
- Compare quotes from three or more providers when shopping car insurance to find the best deals
Check Out Usage-Based Insurance
Usage-based insurance (UBI) is a program offered by car insurance companies that monitor’s a car owner’s driving habits and bases their premium discount on those habits. UBI programs usually use a plug-in device or a company’s app to monitor a driver’s actions behind the wheel and scores based on how safely a person drives.
Actions often monitored by these programs are a driver’s:
- Speed
- Acceleration
- Amount of time and miles driven in a day
- Times of day driven (morning, midnight, for example)
- Phone use while driving
If a driver scores well enough in a UBI program, they can get a significant discount at renewal or after the program is over. Depending on the UBI program and company, a driver may get up to 40% off their premium. However, some programs can also raise rates if a person drives poorly. Some UBI programs we recommend looking into are:
- State Farm:
- Geico: DriveEasy
- Progressive: Snapshot®
- Allstate: Drivewise®
Also, drivers who have had accidents and other violations can benefit from shopping for high-risk car insurance. While increasing your deductible and choosing less coverage can lower your premium costs, you could end up paying more out of pocket if you get into an accident with these insurance choices.
How Much Does Insurance Increase After an Accident?: The Bottom Line
For an average driver with a clean record and good credit, an accident can raise insurance rates by as much as 45% or more. Nationally, USAA offers the lowest rates for drivers with one accident, while State Farm and Progressive make excellent choices for non-military members.
Many factors contribute to a driver’s out-of-pocket car insurance costs. Whether you’re looking for cheap car insurance or want comprehensive coverage with add-ons, it pays to compare quotes. Take a look at our provider reviews below to find the best car insurance for your needs and budget.
How Much Does Insurance Increase After an Accident FAQs
Below are frequently asked questions about how much insurance increases after an accident.
State Farm does not offer accident forgiveness. However, the insurer has some of the lowest rates for both basic bodily injury liability and collision coverages.
Even a no-fault accident will become part of your insurance history once the accident gets reported. Your rates are likely to rise, but the increase is usually smaller than from at-fault accident claims.
Your insurance adjuster may use a number of factors to determine your rate increase, including driving history, severity of a recent accident and other contributing factors, such as driving under the influence of drugs or alcohol.
Our Methodology
Because consumers rely on us to provide objective and accurate information, we created a comprehensive rating system to formulate our rankings of the best car insurance companies. We collected data on dozens of auto insurance providers to grade the companies on a wide range of ranking factors. The end result was an overall rating for each provider, with the insurers that scored the most points topping the list.
Here are the factors our ratings take into account:
- Cost: Auto insurance rate estimates generated by Quadrant Information Services and discount opportunities were both taken into consideration.
- Coverage: Companies that offer a variety of choices for insurance coverage are more likely to meet consumer needs.
- Reputation and experience: Our research team considered market share, ratings from industry experts and years in business when giving this score.
- Availability: Auto insurance companies with greater state availability and few eligibility requirements scored highest in this category.
- Customer experience: This score is based on volume of complaints reported by the NAIC and customer satisfaction ratings reported by J.D. Power. We also considered the responsiveness, friendliness and helpfulness of each insurance company’s customer service team based on our own shopper analysis.
Our credentials:
- 800 hours researched
- 45 companies reviewed
- 8,500+ consumers surveyed
*Data accurate at time of publication.
If you have feedback or questions about this article, please email the MarketWatch Guides team at [email protected].
