đź“Š The At-Fault Accident Impact
Average Rate Increase
+42%
national average
Dollar Impact
+$700-1,200
per year
Duration on Record
3-5 years
varies by state
How Insurers Rate Accidents
Not all accidents affect rates equally. Insurers consider fault percentage, claim size, and severity:
| Accident Type | Typical Increase | Duration |
|---|---|---|
| Minor fender bender (under $2,000) | +15-25% | 3 years |
| Moderate accident ($2,000-10,000) | +30-50% | 3-5 years |
| Major accident ($10,000+) | +50-100% | 5 years |
| Accident with injuries | +75-150% | 5+ years |
Rate Increases by State
| State | Avg Increase | Notes |
|---|---|---|
| California | +61% | Highest penalties |
| Massachusetts | +54% | High penalties |
| National Average | +42% | — |
| Texas | +34% | Below average |
| Maryland | +22% | Lowest penalties |
🛡️ Accident Forgiveness Programs
Several insurers offer accident forgiveness—your first at-fault accident won't raise rates:
Allstate Accident Forgiveness
Purchase as add-on. First at-fault accident forgiven. Included in some premium packages.
State Farm
Earned after 9 years of incident-free driving. Automatic—no additional purchase required.
Farmers Accident Forgiveness
One accident forgiven for every 3 years of accident-free driving. Earned, not purchased.
Progressive
Small accident forgiveness included in some states. First small claim doesn't raise rates.
Important: Accident forgiveness only applies with your current insurer. If you switch companies after an accident, the new insurer will see it and rate you accordingly.
⏱️ How Long Accidents Affect Your Rates
Maximum rate increase. Full surcharge applied.
Some insurers begin to reduce surcharge. Still significant.
Surcharge decreasing. Many insurers drop minor accidents.
Most accidents drop from rating. Rates normalize.
Recovery Strategies
🔍 Shop Immediately
Different insurers weight accidents differently. Get 5+ quotes—rates vary dramatically.
📱 Use Telematics
Prove you're driving safely NOW. Snapshot and similar programs can offset accident surcharge.
đź“š Take Defensive Driving
Many insurers offer discounts for completing courses. Shows you're taking responsibility.
đź’ł Improve Credit
Better credit can partially offset accident impact. Two-pronged improvement strategy.
⏰ Re-Shop at Year 3
After 3 years, many more insurers will quote competitively. Major shopping opportunity.
📦 Bundle Everything
Multi-policy discounts help offset accident surcharge. Maximize bundling savings.
What About Not-At-Fault Accidents?
Good news: most states prohibit rate increases for not-at-fault accidents. However...
Protected States
Most states: can't raise rates if you're 0% at fault. Some require written proof of no-fault.
Watch Out For
Some insurers raise rates anyway and hope you don't notice. Challenge any not-at-fault surcharges.
Arizona: ARS § 20-263 explicitly prohibits rate increases when you're 0% at fault.
The Bottom Line
An at-fault accident typically raises rates 42% for 3-5 years. That's $700-1,200/year in extra premiums, or $2,100-6,000 total. Shop immediately—different insurers weight accidents very differently. Consider accident forgiveness coverage for the future (Allstate, Farmers). Use telematics to prove you're driving safely now. And re-shop aggressively at year 3 when more insurers will quote you competitively.