How Much Does Car Insurance Go Up After An Accident?

What Factors Determine an Increase in Car Insurance After an Accident?

Nobody likes to think about being in a car accident, but it’s important to understand how your car insurance rates may be impacted in the event of one. Each car insurance company weighs a variety of factors when determining how much your rates may go up after an accident. Knowing what they look at can help you better prepare for and manage the cost of your car insurance after an accident.

The first factor that plays into whether your car insurance rates will increase is the severity of the accident. The more serious the accident, the more likely your rates are to go up. This makes sense, as a more severe accident is more likely to result in costly claims. Depending on the severity of the accident, your rates could go up anywhere from a few percent to nearly 100%. Knowing the severity of the accident is important in understanding the potential increase in rates.

The second factor that affects your car insurance rates is the age and experience of the driver. Car insurance companies view drivers under the age of 25 as riskier and thus, may raise rates more for those drivers. Drivers over the age of 25 who have a proven track record of good driving (no tickets or accidents) are typically seen as more responsible, and may receive lower rate increases.

What Can You Do to Minimize the Increase in Car Insurance Rates?

While you cannot control the severity of the accident or the age of the driver, there are some things you can do to minimize the increase in rates. Having a good driving record is essential for keeping car insurance rates low. The less tickets and accidents you have, the less of an impact an accident will have on your rates. Additionally, having a good credit score can also help to minimize the increase in your car insurance rates. Most car insurance companies weigh credit scores when determining rates, and having good credit can help you to get the lowest rates possible.

It is also important to shop around and compare car insurance rates. Different car insurance companies weigh different factors when determining rates, and you may find that one company offers a better rate than another. Additionally, some companies offer discounts for drivers who have experienced an accident, so shopping around can help you to find the lowest rates available.

How Long Does an Accident Stay on Your Record?

The length of time an accident will stay on your record varies from state to state and from company to company. Generally, an accident will stay on your record for 3-5 years, but it is important to check with your car insurance company to determine exactly how long an accident will stay on your record. It is also important to remember that even if an accident does not stay on your record for an extended period of time, your rates may still go up after an accident.

Conclusion

Car insurance rates can go up after an accident, and the increase depends on multiple factors, such as the severity of the accident, the age and experience of the driver, and the car insurance company you are with. However, by maintaining a good driving record, having a good credit score, and shopping around for the best car insurance rates, you can minimize the increase in your car insurance rates after an accident.