Your insurance company treats accidents as predictive indicators. Actuarial data shows that drivers who cause one accident are significantly more likely to cause another within the next five years. This statistical reality drives the premium increases - insurers aren't punishing you, they're adjusting your rate to match your newly assessed risk profile.
The typical rate increase for an at-fault accident ranges from 20-40%, with the exact amount depending on the severity. A minor fender bender might add $300-$500 annually to your premium. A serious accident with injuries can double or triple your rates. These increases typically last for 3-5 years depending on your state and insurer, costing you thousands in total additional premiums.
Shopping around after an accident is crucial. Your current insurer knows your history and may not offer competitive rates to high-risk drivers. Other insurers might specialize in accident forgiveness or weigh different risk factors more favorably. Get quotes from at least five companies - the difference between the highest and lowest quote can easily exceed $1,000 annually.
Some situations don't count against you. Not-at-fault accidents typically won't raise your rates, though insurers vary on this. Comprehensive claims like hitting a deer or hail damage usually have minimal impact compared to collision claims. Understanding which claims affect your rates helps you make strategic decisions about whether to file or pay out of pocket.
Time heals rate increases. As the accident ages, its impact on your premium decreases. Most insurers look back 3-5 years, meaning your rates start dropping after year three and fully reset after year five. Maintaining a clean record during this period is critical - a second accident restarts the clock and can make you nearly uninsurable at standard rates.