How Much Does Insurance Increase After An Accident?

How It's Calculated

There’s no one way your insurance company will figure out how much money your rates will increase following an accident, but there are different factors taken into account regarding how it's calculated. The most important factor is fault. As mentioned, in states that recognize fault, you’re going to pay more if you caused the accident. Another important factor your insurance company considers is your driving history. If you have a history of making claims whether you are at-fault or not, you’re going to see your premium increase more. Other factors include where you live, the crime rate in your area, your age, and other factors that play into the risk you take each time you get into the car you drive. Finally, your specific insurance policy will often play a role, so check it to see what the standard rate increase is. Most companies put the amount in the paperwork, called a “policy surcharge following an accident,” but many individuals don’t see it when they sign.

Continue reading to discover how long insurance increases last.