Being involved in a car accident can be stressful, especially if you’re found at fault and worried about how it may affect your car insurance rates. Beyond dealing with vehicle repairs and potential injuries, many drivers worry about what will happen to their car insurance. In most cases, an at-fault accident can increase your premiums and affect your driving record for years.

Understanding how insurance companies handle at-fault accidents can help you prepare for what comes next and avoid paying more than necessary.

Here’s what to know about how an at-fault accident may affect your auto insurance.

On average, car insurance rates can increase after an at-fault accident, though the exact amount depends on your insurer, driving history, and the severity of the accident. Auto insurance claims can also be expensive.

In fact, research has shown that the average collision claim can be around $6,554, which helps explain why insurers often raise premiums after accidents.

Many insurance policies include discounts for drivers who maintain a clean record.

After an at-fault accident, you may lose benefits such as safe-driver or claim-free discounts. Losing these discounts can further increase the cost of your policy.

If you have multiple accidents or a history of risky driving, your insurance company may choose not to renew your policy.

This usually doesn’t happen after a single accident, but repeated claims can make insurers view you as too risky to insure. Maintaining safe driving habits can help reduce the risk of your insurance policy being canceled or non-renewed.

Some insurers offer accident forgiveness programs. With this benefit, your first at-fault accident may not increase your insurance rates.
However, these programs usually require that you:

 

Understanding how an at-fault accident affects your car insurance can help you make informed decisions moving forward. While premiums may increase temporarily, maintaining safe driving habits and avoiding future claims can help improve your rates over time.

If your insurance rates have increased after an accident, comparing quotes can help you find better coverage at a lower price. Get a personalized quote today and discover the coverage you deserve!