How Accidents Affect Auto Insurance Rates

Accidents will have an impact on your auto insurance rates, but a good record can help you avoid being hit by higher rates. There are several different options available for dealing with at-fault accidents. In some states, you can even sue your insurer if you are at fault for an accident.

Unacceptably bad driving record

When you have an unacceptably bad driving record, it’s going to affect your insurance rates. Speeding tickets, accidents, blown stop signs, and fender benders can all add up to a higher monthly rate. Depending on your carrier’s policies, a bad driving record could lead to increased premiums, or even cancellation of your insurance policy altogether.

Insurance companies look at driving records when determining whether you’re a high-risk or low-risk driver. Even a speeding ticket or DUI can raise the cost of your insurance by three percent or more per year. Other infractions, such as reckless driving, may also raise your monthly premiums.

At-fault accident

When an accident occurs that is your fault, you can expect your auto insurance rates to increase. These increases aren’t intended to punish you for the accident – they are simply an attempt by insurers to cover their costs. The amount of an increase in premiums will depend on factors such as your location and your claims history. In some states, age and gender also play a factor in premium increases. Young drivers may see the biggest increases after an accident. This is because they’re seen as particularly risky by insurers.

The average increase in insurance rates after an at-fault accident depends on the specifics of the accident and your previous driving history. In many cases, the increase will be temporary as long as you don’t file more claims and maintain a clean driving record. In addition, it’s crucial to keep your credit and driving record clean to avoid being charged higher insurance rates.

Suiting insurer

Many insurers focus on the past three years of a driver’s driving record when calculating rates. However, accidents can affect rates for longer than three years. Some insurers consider at-fault accidents for up to five years and may raise rates even when the driver is not at fault. Insurers report this information in their filings and perform a variety of analyses.

Most insurers will increase rates if you have an accident, but there are ways to reduce the impact. One way is to increase your deductible. While this option increases your out-of-pocket expenses, it can also lower your insurance premium. If you choose to reduce your coverage, you should keep in mind that state laws will also affect the amount of coverage you must have. Another way to reduce premiums is to improve your credit score.

Repaying claim out of pocket

One of the most important factors that affect insurance rates is whether you file a claim. Experts advise against filing claims for minor losses as this can result in a higher monthly premium. Another factor that affects insurance rates is whether you have a high credit score or not. You can reduce your rates by improving your credit score.

When you have a car insurance policy, it’s essential to have enough money to pay the deductible. This way, if something does happen, you don’t have to worry about paying a high amount out of pocket. In addition, a higher deductible can lower your insurance rates.


It’s no secret that accidents affect your insurance rates. Even if you’re not at fault, you’re likely to pay more if you’re involved in an accident. Fortunately, there are several ways to avoid these rates hikes. First, make sure you maintain an accident-free driving record. If you have multiple accidents within three years, your insurer will charge a multiple crash premium. This higher premium is meant to compensate the insurance company for the additional risk of paying a high claim total.

Luckily, not all accidents are the same. Insurers assign points to accidents based on the severity and who was at fault. These points are then used to determine how much your rates increase. For example, a DUI-related incident can skyrocket your rates while a minor accident with only minimal damage is unlikely to raise them much.