What happens to your rate after you file a claim
Your insurance company will raise your rate after an accident, but the amount depends on who was at fault, your current policy terms, and your insurer's specific pricing rules. If you caused the accident, expect a rate increase that typically lasts three to five years on your policy. If the other driver was at fault and you filed a claim against their insurance instead of yours, your rate usually stays the same.
The increase is not automatic or uniform. Two people with identical accidents at the same company can see different rate hikes because insurers weigh factors like your driving history, the cost of the claim, and whether this is your first accident. Some companies raise rates more aggressively than others, and some offer accident forgiveness programs that prevent or delay the increase if you meet certain conditions.
Filing a claim is different from reporting an accident to your insurer. You can report an accident without filing a claim, which means you are telling the company what happened but not asking them to pay for repairs. Reporting alone typically does not raise your rate, but filing a claim does.
Key Takeaways
- Rate increases after an at-fault accident typically range from 15 to 40 percent, but the exact amount varies by insurer and your driving history.
- If the other driver was at fault and you filed a claim against their insurance, your own rate should not increase.
- The increase usually stays on your record for three to five years, though some companies remove it sooner if you have no further incidents.
- Accident forgiveness programs can prevent a rate increase if you have been claim-free for a set period, though you may pay a higher premium to add this coverage.
- Shopping for a new quote after an accident can reveal whether your current company is raising your rate more than competitors would.
How much rates typically increase
Most insurers raise rates between 15 and 40 percent after an at-fault accident, but this range is not a may provide for your specific situation. A minor fender-bender with low repair costs may trigger a smaller increase than a collision that totaled a vehicle. Your insurer's own data on accident claims in your area and age group also affects the number.
Some companies publish their rate-increase schedules publicly, while others keep them internal. You can call your agent or log into your online account to see what your new rate will be before you decide whether to file the claim. This matters because sometimes paying for minor repairs out of pocket costs less than filing a claim and absorbing the rate increase over several years.
The increase is not a one-time charge. It affects your premium every time your policy renews, usually annually. A 25 percent increase on a $1,200 annual premium means an extra $300 per year for three to five years, which adds up to $900 to $1,500 in total additional cost.
When the accident was not your fault
If you were not at fault and you file a claim against the other driver's liability insurance, your own rate should not increase. The other driver's insurance company pays for the damage, and your insurer has no reason to penalize you. This is called a not-at-fault claim.
The complication arises when the other driver is uninsured or underinsured, or when liability is unclear. If you file a claim under your own collision or comprehensive coverage because the other driver cannot pay, your insurer may treat it as an at-fault claim and raise your rate. This is why uninsured motorist coverage and underinsured motorist coverage exist — they protect you without triggering a rate increase the way a collision claim would.
Even in a not-at-fault situation, your insurer may still contact you to gather information about the accident. This does not mean they will raise your rate; they are simply documenting what happened for their records.
Accident forgiveness and how it works
Accident forgiveness is an optional add-on that prevents your rate from increasing after your first accident, or sometimes your first accident within a set time period. You typically pay a small extra premium to have this coverage — often $10 to $30 per year — and if you have an accident, the forgiveness kicks in and your rate does not rise.
The catch is that accident forgiveness usually applies only if you have been claim-free for a certain number of years before the accident. Common thresholds are three to five years with no accidents or violations. If you already have an accident on your record, you may not be able to add accident forgiveness, or the program may reset the clock on when you can use it.
Accident forgiveness covers only the accident itself. If you also receive a traffic ticket for the accident — for example, a citation for failure to yield — that ticket can still raise your rate separately. The forgiveness applies to the claim, not to the violation.
How long the increase stays on your record
Most insurers keep an at-fault accident on your record for three to five years. After that period, the accident no longer affects your rate calculation, even though it may still appear in your driving history if someone requests it.
The exact timeline depends on your insurer's policy. Some companies use three years, others use five. A few use different timelines depending on the severity of the accident. You can ask your agent how long your specific accident will affect your rate.
During those years, your rate stays elevated at each renewal. If you have no further accidents or violations, some insurers will lower your rate gradually each year, even before the accident falls off completely. Others keep the rate flat until the accident ages off, then drop it back down.
Whether to file a claim or pay out of pocket
Before you file a claim, compare the cost of repairs against the cost of the rate increase over time. If repairs cost $500 and your rate will increase by $300 per year for three years, paying out of pocket saves you $400. If repairs cost $3,000, filing the claim and accepting the rate increase is usually the better choice.
Your deductible also matters. If you have a $1,000 deductible and repairs cost $1,200, you pay $1,000 out of pocket anyway, so filing the claim only saves you $200 in immediate costs. Add the rate increase on top, and paying out of pocket may be smarter.
One exception: if you are worried about future accidents or if you have accident forgiveness, filing the claim now may be worth it because you can use your forgiveness benefit. After you use it, you cannot use it again for a set period, so timing matters.
Shopping for insurance after an accident
After an accident, your current insurer is not the only option. Other companies may rate you differently based on the same accident. Some insurers are more forgiving of accidents than others, and some specialize in drivers with accident history.
Get quotes from at least three other insurers before your policy renews. Tell them about the accident upfront so the quotes reflect your actual rate. You may find that switching saves you money even after the accident, especially if your current company is raising your rate more aggressively than competitors.
Be aware that switching companies does not erase the accident from your record. The new insurer will see it in your driving history and will factor it into their rate. What changes is how much weight they give it compared to your current company.
Frequently Asked Questions
Will my insurance go up if I just report the accident but do not file a claim?
No. Reporting an accident to your insurer is informational and does not trigger a rate increase. You only see a rate increase when you actually file a claim and ask your insurer to pay for damages. If you decide to pay for repairs yourself, you can report the accident without filing a claim and your rate will not change.
Can I get a rate decrease after a few years of no accidents?
Yes, but it depends on your insurer. Some companies offer accident-free discounts or will lower your rate gradually after the accident ages off your record. Others keep your rate flat until the accident falls off completely, then adjust it. Ask your agent whether your company offers any discounts for a clean driving record after the accident period ends.
What if I was partially at fault for the accident?
Partial fault varies by state and insurer. In some states, you can still file a claim against the other driver's insurance even if you were partially responsible. In others, your own insurer handles it. Either way, if you are found to be any percentage at fault, your rate will likely increase, though possibly less than if you were fully at fault. Ask your agent how your state handles shared fault.
Does a minor accident raise my rate less than a major one?
Usually yes, but not always. A minor accident with low repair costs typically results in a smaller rate increase than a major collision. However, some insurers also consider the type of accident — a rear-end collision you caused may be treated differently than a parking lot bump. The best way to know is to ask your insurer for a quote on your new rate before you file.
If I switch insurance companies, do I have to tell them about an old accident?
Yes. When you apply for a new policy, you must disclose all accidents from the past three to five years. The new insurer will check your driving record anyway, so hiding an accident will not work and can void your policy if discovered. Be upfront about it and get quotes that reflect your actual history.