If you’ve recently been involved in a car accident, you’re likely wondering: How much will my auto insurance premium increase? At Jack Stone Insurance Agency, we understand that accidents are stressful enough without the added worry of rising costs. Here we will break down what you can expect after a claim, the factors that influence your rate, and steps you can take to minimize the impact on your wallet.
Auto insurance is designed to protect you financially in the event of an accident, but filing a claim often leads to higher premiums. Insurance companies calculate your rates based on risk, and statistically, drivers who have been in an accident are more likely to be involved in another. This increased risk is reflected in your premium.
Average Increase: After an at-fault accident, your auto insurance premium can go up by an average of $872 per year, according to industry research. Some sources report increases ranging from 20% to 50% or more, depending on the severity of the accident and your insurer’s policies.
Minor vs. Severe Accidents: Minor accidents may result in a 20–30% premium hike, while more serious incidents can lead to even higher increases.
No-Fault Accidents: Even if the accident wasn’t your fault, your premium might still rise, though typically less than after an at-fault accident.
Insurance companies use your driving history to assess risk. An accident, especially one you caused, signals a higher likelihood of future claims. To offset this risk, insurers adjust your premium accordingly. Multiple claims or accidents within a short period can compound this effect, leading to even steeper rate hikes.
Most insurers review your driving record for the past three to five years when calculating your premium. After this period, if you maintain a clean record, your rates may decrease. Some companies offer accident forgiveness programs, which prevent your premium from increasing after your first qualifying accident.
Fault: At-fault accidents generally result in higher premium increases than no-fault accidents.
Severity: More serious accidents with higher payouts lead to larger rate hikes.
Driving Record: A history of safe driving can help mitigate the impact of a single accident.
Location: State regulations and local accident rates also affect how much your premium increases.
Maintain a Clean Record: Avoid additional accidents or violations to help your premium decrease over time.
Ask About Discounts: Some insurers offer discounts for safe driving courses or installing safety devices in your vehicle.
Consider Accident Forgiveness: If available, this feature can protect you from a rate increase after your first qualifying accident.
For more information on your rights and regulations surrounding auto insurance, consider these official resources:
California Department of Insurance: Consumer Guide to Auto Insurance (Jack Stone Insurance Agency serves California, but similar guides exist for other states.)
National Association of Insurance Commissioners (NAIC): Consumer Information Source
U.S. Department of Transportation National Highway Traffic Safety Administration (NHTSA): NHTSA Crash Stats
At Jack Stone Insurance Agency, we’re dedicated to helping you strike the perfect balance between robust protection and real affordability. Every driver’s journey is unique—that’s why we work closely with each client, carefully assessing your risks and recommending auto insurance options tailored just for you. Our mission is to give you peace of mind, so you can drive confidently, knowing you’re protected no matter what comes your way.
Accidents happen, and when they do, you shouldn’t have to worry about skyrocketing insurance costs on your own. That’s where Jack Stone Insurance Agency steps in. Contact us today to review your coverage and discover solutions that fit both your needs and your budget. We can be your trusted partner for comprehensive auto insurance every mile of the way. You can also call us directly at (925) 392-8365.
Most insurers treat hit-and-run claims as not-at-fault, but your premium may still be affected depending on your policy and state regulations.
Accidents generally remain on your driving record for several years and cannot be removed unless there is an error. However, maintaining a clean record over time can help reduce the impact.
Your personal auto insurance may extend to rental cars, but coverage limits and deductibles apply. Always check with your insurer before renting.
Comprehensive claims typically have less impact on your premium than collision claims, but multiple claims of any type can still lead to rate increases.
