What Happens to Your Car Insurance After an Accident
An accident is stressful enough without worrying about your insurance. Knowing what to do at the scene—and what happens to your policy afterward—helps you protect both your finances and your coverage. Here's the full picture.
At the scene: what to do first
Your actions in the first minutes matter for safety and for your claim.
- Check for injuries and get to safety. Move to a safe spot if the vehicles are drivable and it's safe to do so.
- Call for help if anyone is hurt or the damage is significant.
- Exchange information with the other driver: name, contact, insurer, policy number, license plate, and vehicle details.
- Document everything. Photograph all vehicles, damage, the road, signs, and the overall scene from several angles.
- Get witness contacts if anyone saw what happened.
- Don't admit fault. Stick to facts. Fault is determined later by the insurers and, if needed, the authorities.
Filing a claim
Report the accident to your insurer promptly, even if you're not at fault—many policies require timely notice. You'll provide your documentation and account of events, and an adjuster will assess damage and assign fault.
Whether you should file depends on the situation:
- Injuries or another party involved: always file. The potential costs are too high to absorb alone.
- Minor, single-car damage near your deductible: paying out of pocket may be cheaper than the premium increase a claim can trigger. Do the math first.
For more on how claims interact with your rate, see our car insurance hub.
How your rate changes
The impact on your premium hinges mainly on fault and severity.
At-fault accidents
An at-fault accident typically raises your premium, often significantly—especially when there are injuries or expensive repairs. The increase, called a surcharge, is applied at your next renewal.
Not-at-fault accidents
If the other driver is clearly at fault, your rate is usually affected much less, and in many states it shouldn't rise at all for an accident that wasn't your fault. Still, some insurers factor in any claim, so results vary.
Severity matters
A minor fender-bender has a smaller effect than a serious crash with injuries. Multiple accidents in a short span compound the increase and can even affect your renewal eligibility.
How long the increase lasts
An accident generally stays on your insurance record for three to five years, depending on your insurer and state. The surcharge is heaviest in the first year or two and gradually fades, disappearing entirely once the accident ages off—provided you stay incident-free in the meantime.
Ways to soften the blow
Even after an at-fault accident, you have options:
Accident forgiveness
Some insurers offer accident forgiveness, which waives the surcharge for your first at-fault accident if you qualify. Check whether you have it, or whether adding it (before any accident) makes sense for you.
Shop around at renewal
Insurers weight accidents differently. When your premium jumps, get quotes elsewhere—another company may view the same accident far more leniently. This is often the single most effective way to recover a lower rate.
Take a defensive driving course
Some states and insurers reduce premiums for completing an approved course, which can partially offset a surcharge.
Review your discounts and coverage
Confirm you're getting every discount you qualify for—bundling, telematics, low mileage—and revisit your deductible. Raising it lowers your premium, though it means paying more out of pocket next time.
Keep a clean record going forward
Time is your ally. Each incident-free year moves you closer to the surcharge falling off. Avoiding further accidents and tickets is the surest path back to a lower rate.
Diminished value and other considerations
If your car was repaired after a not-at-fault accident, it may be worth less than before because of its accident history. In some states you can pursue a diminished-value claim against the at-fault driver's insurer. Keep all repair records, since they support both future claims and the car's resale story.
Bottom line
After an accident, act carefully at the scene, document thoroughly, and don't admit fault. Whether your rate rises depends mostly on fault and severity, and a surcharge typically lasts three to five years before fading. If your premium jumps, check for accident forgiveness, re-shop the market aggressively, and keep your record clean—those steps put you back on the road to a lower rate.
FAQ
How much does car insurance go up after an at-fault accident?
It varies by insurer, state, and severity, but an at-fault accident often raises premiums substantially—commonly a large percentage increase—especially if there were injuries or high damage costs. A not-at-fault accident usually affects your rate much less or not at all.
How long does an accident stay on your insurance record?
Typically three to five years, depending on your insurer and state. The surcharge usually fades over that period as long as you avoid further incidents, and the biggest impact is in the first year or two.
Should I file a claim for a minor accident?
If the damage is small and close to your deductible with no injuries or other parties involved, paying out of pocket may cost less than the premium increase a claim can trigger. For anything involving injuries or another driver, file the claim.