After an at-fault car accident, you’re probably worried about how your insurance rates will be impacted. It’s not uncommon to see insurance premiums increase, but luckily there are a few ways to get lower car insurance after an accident.
Car accidents are not only emotionally and physically taxing, they can also put a dent in your wallet. In this article, we describe seven simple ways you can save yourself money by lowering car insurance expenses after an at-fault accident. We’ve also taken the time to review the top auto insurance companies if you are considering a new provider in the aftermath of a collision.
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How Does a Car Accident Affect Car Insurance Rates?
When shopping for car insurance, it’s good to keep in mind how a car accident will affect insurance rates. We looked at rate estimates for 35-year-old male drivers. In the table below, you can see how much the average annual premium for a full-coverage insurance policy may cost after an auto accident.
| State | First Accident | Second Accident | Third Accident |
|---|---|---|---|
| AK | $2,074 | $2,713 | $4,007 |
| AL | $2,301 | $3,225 | $4,936 |
| AR | $2,627 | $3,722 | $5,320 |
| AZ | $2,605 | $3,709 | $5,461 |
| CA | $3,867 | $5,867 | $8,018 |
| CO | $2,742 | $3,687 | $5,072 |
| CT | $2,960 | $4,339 | $7,536 |
| DC | $3,005 | $4,113 | $6,198 |
| DE | $2,973 | $4,346 | $6,054 |
| FL | $4,480 | $6,163 | $8,834 |
| GA | $2,485 | $3,453 | $4,871 |
| HI | $2,610 | $3,696 | $5,457 |
| IA | $1,783 | $2,259 | $3,202 |
| ID | $1,606 | $2,080 | $2,798 |
| IL | $2,184 | $3,000 | $4,549 |
| IN | $2,162 | $3,069 | $4,826 |
| KS | $2,346 | $3,210 | $4,348 |
| KY | $2,967 | $3,984 | $5,224 |
| LA | $4,401 | $6,260 | $8,617 |
| MA | $4,637 | $6,574 | $8,763 |
| MD | $2,905 | $3,923 | $5,322 |
| ME | $1,491 | $2,218 | $4,000 |
| MI | $6,032 | $10,444 | $16,930 |
| MN | $2,452 | $3,409 | $4,784 |
| MO | $2,531 | $3,462 | $4,930 |
| MS | $2,413 | $3,247 | $4,394 |
| MT | $3,194 | $4,082 | $5,800 |
| NC | $2,558 | $3,079 | $4,457 |
| ND | $2,020 | $2,800 | $3,672 |
| NE | $2,653 | $3,641 | $4,903 |
| NH | $2,509 | $3,538 | $5,185 |
| NJ | $4,148 | $6,733 | $11,782 |
| NM | $2,172 | $2,849 | $3,773 |
| NV | $3,356 | $5,154 | $7,368 |
| NY | $4,047 | $5,402 | $7,449 |
| OH | $1,708 | $2,321 | $3,418 |
| OK | $2,549 | $3,488 | $4,758 |
| OR | $2,099 | $2,875 | $4,100 |
| PA | $2,548 | $3,328 | $4,543 |
| RI | $2,080 | $2,132 | $2,849 |
| SC | $2,291 | $3,000 | $4,135 |
| SD | $2,616 | $3,358 | $4,333 |
| TN | $2,065 | $2,869 | $4,375 |
| TX | $2,969 | $4,072 | $5,839 |
| UT | $2,296 | $3,368 | $4,772 |
| VA | $1,754 | $2,669 | $3,651 |
| VT | $1,573 | $2,153 | $3,193 |
| WA | $2,310 | $3,062 | $4,340 |
| WI | $2,032 | $2,817 | $4,107 |
| WV | $2,342 | $3,279 | $5,238 |
| WY | $2,496 | $3,230 | $4,409 |
1. Tell Your Car Insurance Provider About Your Accident
You may be tempted to not tell your car insurance company about an accident if it is minor, but telling your insurance representative is a wise decision. The owner of the vehicle you hit can sue you for the damage you caused, even weeks after its occurrence.
If a driver sues you and you haven’t reported the accident to your insurance company, the insurance provider can refuse to pay your legal bills and potential payments to the other driver. So, while an insurance company may raise your rates if you report an accident, it is much safer to report it than not.
2. Ask Your Auto Insurer About Accident Forgiveness
Accidents are a part of life, and some auto insurance companies recognize that by offering accident forgiveness insurance. The conditions required by each insurance company for accident forgiveness coverage are different, so it is best to give your provider a call and ask what their requirements are for eligibility. If the coverage isn’t an added perk with the purchase of an auto insurance policy, you may be able to add it for a one-time rate increase.
Some insurance companies forgive your first at-fault accident, and others forgive an accident after carrying insurance with them for three to five years.
Companies that offer accident forgiveness include:
What Are the Benefits of Accident Forgiveness?
Accident forgiveness works to give you more peace of mind after the stress of a collision. If you have the coverage, you won’t have to worry about premium increases and you’ll be able to keep any good driver discounts you’ve qualified for.
3. Find A Car Insurance Provider With A Lower Premium
Providers vary in their average car insurance rates for drivers with at-fault accidents. In comparison to other leading providers, Geico and State Farm generally offer lower car insurance after an accident.
Our review team wrote an article on the top cheap auto insurance providers, and these were our top five picks:
- USAA
- Geico
- State Farm
- American Family Insurance
- Erie Insurance
Whenever you shop for car insurance, we recommend getting quotes from multiple providers so you can compare insurance coverage and choose the company that can offer the lowest rates. In addition to the insurance company you choose, factors such as your age, vehicle make and model, and driving history can affect your premium, so what’s best for your neighbor might not be best for you.
Use our tool below to start comparing cheap car insurance providers.
4. Improve Your Credit Score
Many drivers know that car insurance companies consider a driver’s accident history and whether they have a clean driving record when determining rates, but did you know that a driver’s credit score can also affect car insurance premiums?
According to Investopedia, many insurers look at a driver’s credit history to determine the insurance rates they will offer. Insurance companies believe that those with higher credit scores are less likely to file a claim. Therefore, it’s a good idea to try to improve your credit.
Once your credit score is raised, you may be able to get a more affordable car insurance policy from a different provider or the one that you already work with.
5. Look Into Insurance Discounts
Several auto insurance companies offer substantial discounts to their customers. Most providers offer savings to policyholders that bundle insurance products like home, renters, and auto.
As you can see, many of the discounts vary based on the specific individual applying for a discount, so it is best to call the insurance company to find out what your specific discounts would be.
In addition to the discounts listed below, some insurance companies offer a discount for an anti-theft device. Geico offers a potential savings of 25 percent if you have an anti-theft system for your vehicle. Your insurance company should be able to tell you whether it offers this discount and which devices may qualify for it.
Auto Insurance Discounts
Below is a table with some of the most common car insurance discounts and the companies that provide them.
| Insurance Provider | Geico | AAA | Erie |
|---|---|---|---|
| Student Discount | 15% | 14% | Varies |
| Multiple Car Discount | 25% | 27% | 25% |
| Bundle Home and Auto Insurance Discount | Varies | Varies | 25% |
| New Driver Discount | Varies | Varies | 20% |
| Military Discount | 15% | Varies | None |
| Senior Discount | Varies | Varies | None |
| Defensive Driving Course | 20% | Varies | None |
6. Consider Dropping Your Comprehensive Coverage
Comprehensive car insurance covers non-collision damage that is out of your control, such as damage from a storm, fire, or theft. Since this type of insurance is optional, you might consider stopping this coverage to lower car insurance after an accident.
Of course, stopping comprehensive coverage could expose you to heavy costs if a natural disaster or vandalism impacted your vehicle. If you have a very old car with low value that you hope to replace soon, it might be worth dropping this coverage. If you have a relatively new car that you would like to drive for many more years, then dropping this coverage is not recommended.
7. Join A Usage-Based Car Insurance Program
Drivers who average less than 10,000 miles a year might consider joining a usage-based insurance program. When you sign up for one of these programs, a telemetric device will be installed in your car to calculate possible discounts based on how much, how well, and/or when you drive.
Popular usage-based programs include State Farm’s Drive Safe & SaveTM, Progressive’s Snapshot®, and Allstate’s Drivewise®. You could also consider purchasing Metromile insurance, which charges you exclusively by the mile.
Best Car Insurance Companies After An Accident
The aftermath of an accident is a great time to compare your current auto insurance provider’s offerings to those of other leading providers. Below, learn why we trust State Farm and Geico insurance policies to help lower car insurance after an accident.
Or start comparing car insurance quotes right away by entering your zip code here:
State Farm Insurance: Best Overall
Maintaining an accident-free driving record and making efforts to continually educate yourself on safe driving habits are rewarded by State Farm. Discounts are available for good students, safe drivers, customers who bundle multiple policies, and more. For drivers that are new to the road and worried about an at-fault collision, State Farm is a good option because it has programs to help teen drivers stay safe throughout their first years of driving.
Read more: State Farm insurance review
Geico Insurance: Best Discount Availability
If you’re shopping around for new auto insurance, Geico offers some of the lowest insurance rates in the industry after at-fault collisions. Geico has a user-friendly mobile app that allows you to manage your account settings and quickly file a claim at the site of a collision. This insurer also has good discounts to help you lower your premium, like having certain safety features installed on your car.
Read more: Geico Insurance review.