You swerved for a skunk and wrecked your ride; now your car insurance is going to double, right? Not necessarily. With the right insurer---or some clever maneuvering---you can still save money on car insurance after an accident.

If you’re reading this article, you may have gotten into a car accident recently—or you know someone who did. First, we hope no one was seriously hurt.

Second—and we hate to give you more bad news—there’s a chance that even if you weren’t injured at the scene, you may feel some pain in your pocket the next time your car insurance is up for renewal.

That’s because car insurance companies often raise premiums for drivers who have recently been in an accident. (Your premium is the amount you periodically pay to an insurer for coverage.)

Then again, there’s a chance your premium will stay exactly the same.

If the accident is not your fault, it’s the first in which you’ve been involved, and your driving history is free of moving violations and/or insurance claims, you may have no premium increase at all,

says Loretta Worters, Vice President of the Insurance Information Institute, a non-profit dedicated to helping the public understand how insurance works.

But if you’re to blame, or your insurance company feels that you’ve just been in too many accidents (even if none have been your fault), your premium will likely increase.

Exactly how much more you’ll have to pay varies from company to company and depends on the severity of the accident.

If you are at fault and someone is injured, you will most likely lose your good driver discount and could see a 20 to 25% premium increase…These increases generally stay on your premium for three years.

But don’t panic. Here’s some advice on how you can put the brakes on any premium increases after you’ve been involved in a car accident.

How much does car insurance go up after an accident?

Repair costs and medical bills aren’t the only financial blows that can come after you are involved in an accident. You may find that your car insurance rates increase as well, as much as 32%, even if you weren’t found at fault. This could add hundreds of dollars to your expenses each year, leaving you with less money to put towards your financial goals.

Since individual car insurance rates vary, based on factors like driving history and age, it is hard to say exactly how much more you can expect to pay. If you have been involved in other accidents, you can almost bet that your insurance will go up more than someone who has never had an accident before. 

I recommend following up with your insurance agent after any kind of accident, no matter how small, to see how it will affect your premium. This eliminates the stress of getting an unexpectedly high bill in the mail and gives you, and your budget, time to adjust.

1. Tell your insurer about the accident, no matter how small it was

If you caused a minor accident in which no one was hurt, or you weren’t at fault, you may be tempted to just not tell your insurance company about it. If they don’t know about it, they can’t increase your premium later, right?

Wrong. “If the other driver sues you weeks or months later, your failure to report the accident immediately might cause your insurer to refuse to the honor the policy,” says Worters. That means you’ll be stuck with all the legal bills and any potential judgments in the plaintiff’s favor. Those bills will likely be far higher than any premium increase.

Even if your insurer does still honor the policy, you will have deprived them of valuable time—time in which they could have investigated the accident and prepared your defense. In other words, by withholding the information, you’ll have decreased their odds of winning your case. If they do end up paying a claim, they’ll likely increase your premium.

2.  Ask if your policy includes an accident forgiveness clause

Statistics show most drivers will get into one car accident every 17.9 years. Because some insurers have accepted that accidents are simply a part of life, they’re willing to ignore your first mishap and not raise your premium.

“The details vary by company,” says Worters. “Some may give you accident forgiveness immediately, while others will only do so after you’ve been an accident-free policyholder for as many as three to five years. They also may require no moving violations for three years.”

3. Shop around for a new policy

If you’re still not happy with your renewal rate, use our resources to shop for a new car insurance policy.

Although you’ll still pay more than if you had a clean driving record, an insurer like Liberty Mutual can help you pay less. With Liberty Mutual, you pay only for the insurance you need, so you can eliminate some extras that you’ll never use. You can sign up for Right Track and save up to 30% on premiums for good driving behavior moving forward.

Below you can also easily find the best car insurance providers operating in your area.

4. Increase your deductible

If your insurance company does raise your premium, you can still lower the amount by increasing your deductible (the amount you’ll pay after you file a claim and your insurance kicks in).

For example, according to the I.I.I., increasing your deductible from $200 to $500 could reduce your car insurance coverage cost by 15% to 30%. Going to a $1,000 deductible can save you 40% or more.

But before you do this, ask yourself if you’ll have the $500-$1,000 to spend if you get into another accident. (This is just another good reason to build up your emergency fund).

5. Take advantage of other discounts

Now may be the time to consider some other ways to save on premiums:

  • Drop collision and/or comprehensive coverages if you have an older car.
  • If you drive less than 10,000 miles per year (the average number of miles insurance companies assume people drive), you could qualify for a discount.
  • Your insurance provider may lower your rate if you’ve been a long-term customer.

6. Take a driving class

You probably thought you saw the last of driver’s ed when you were 16. But if you dust off your old notebooks and take a refresher driving course, your insurance company may see this as a sign that you’re looking to improve your driving skills—and they may show mercy on you come renewal time.

“It won’t help if you were caught driving recklessly or under the influence,” says Worters. “But otherwise, it might help reduce rates. Don’t wait for your insurance company to ask you to do this. Do it on your own and tell them about it.”

You can find a driver’s ed refresher course in your state here.

Premiums vary substantially from company to company. If you have home insurance through another provider, include it on your list of potential car insurers. When you “bundle” your home and car insurance with the same company, you’ll get a discount.

Potential insurers will ask you to report any accidents and moving violations you’ve received over the last few years. Don’t lie. They’ll discover all reported accidents or tickets in their databases.

Keep in mind that money shouldn’t be the only factor when making your final decision.

Select an insurance company that has a reputation for good customer service and is financially stable… Check consumer publications and your state insurance department for customer satisfaction surveys and find out if they are financially stable through rating companies such as A.M. Best.

Here’s hoping you don’t get into another car accident for at least 17.9 more years!

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About the author

Total Articles: 39
Patty Lamberti is a freelance writer and Professional-in-Residence at Loyola University Chicago, where she teaches journalism and oversees the graduate program in digital media storytelling. If she doesn't know something about money, you can trust she'll track down the right people to find out. You can learn more about her at And if you have any story ideas, or questions about money etiquette that you'd like her or an expert to answer, email her at [email protected]