How Can I Lower My Car Insurance Rates After An Accident?


How Can I Lower My Car Insurance Rates After An Accident?

Policy Scout
Policy Scout

If you’re like most people, then you’ve probably been involved in some type of car accident. From fender-benders to more extreme collisions, these all can cause injury and pain that can last for years. However, while a lot of that pain can be physical, the majority of pain stems from what happens to your wallet. While getting past small injuries is usually easy for many, the financial burden that comes after an accident can be as painful as it gets. Those without insurance are likely to be hit with insane bills after an accident, but even those with reliable car insurance can see rates go through the roof. This is a common realization that many have experienced for years, but recently, there have been numerous ways in which drivers are keeping their rates low after an accident.

Policy Scout

Find the right plan for you!

Compare insurance carriers in your area. It's 100% free.

To first understand how to keep these premiums to a minimum, it’s important to first understand how your insurance is affected after an accident. In this post, we’ll discuss what causes these insurance premiums to rise and what can be done to keep these rates to a minimum.

How Rates Are Affected

While it’s common belief that insurance rates will surely rise after an accident, that’s not always the case. There are many factors to consider regarding the rise of insurance rates, and to the surprise of many, sometimes rates don’t go up at all. Take a look at some key points regarding how rates are affected after an accident:

Yes, They Usually Go Up

The sad truth is that insurance rates usually go up after an accident. However, there are multiple factors that lead to a slight increase in your premium or actually no increase at all.

They Can Stay the Same

If you’re one of the lucky drivers that doesn’t see a rise in their premium after an accident, consider yourself a good driver with good insurance. However, there are usually more factors that go into this decision for your insurance company. Your rates may stay the same if:

  • It was your first accident

  • You have a good driving history

  • You have no recent insurance claims

While these factors don’t necessarily mean that you won’t have an increase at all in your premium, they can definitely help your cause.

Why They Rise (Sometimes By A Lot)

Like we mentioned previously, insurance rates usually go up after an accident. But how much you might be asking? Well, there’s a lot that goes into it. Here are some common reasons that an insurance premium might skyrocket after an accident:

  • The accident was your fault

  • You have too many recent claims

  • You’ve had too many accidents, even if not at-fault

  • Passengers were hurt in your at-fault accident

If one or multiple of these has happened to you, you shouldn’t be surprised to see a significant rise in your rates. However, the amount does depend on your insurance company and the policy you have.

How to Keep Rates Low After an Accident

While there is mostly bad news after an accident no matter who was at fault, there is a slight chance that your rates might not even go up at all. But while most rates will be on the rise, there are some ways to help limit the blow. Check out these suggestions below:

Tell Your Insurance About Every Accident

When we’re involved in small accidents, many people tend to not tell their insurance due to the fact that their rates may go up. While it may seem smart to do this, it could end up being very devastating. Let’s say that you’re involved in a small accident and you choose not to tell your insurance. If the other driver decides to sue you weeks down the road, your insurance company wouldn’t be very happy with you. In fact, it’s common for an insurance company to not honor your coverage at all if you never inform them of the accident. But even if they still honor your coverage, they’ve lost all that time where they’ve couldn’t been investigating the case, and now they might end up losing the battle, which means more money for you.

Take a Driving Class

While driving classes can be boring and time-consuming, they can do wonders for your insurance rates. Especially if you were recently involved in an accident, attending a driving class can show your insurance company that you’re working towards being a better driver. While it doesn’t mean that your insurance rates will not be on the rise, it will definitely help your cause come renewal time.

Increase Your Deductible

Another option to keep costs low after an accident is to increase your deductible. In fact, increasing your deductible to $1,000 can save drivers 40% or more on their premiums. However, if you’re involved in many accidents, you’ll have to consider if you can afford to pay the extra cash if you get into another accident. While you’ll start saving on your monthly premium, you’ll have to fork up a lot of change if you're involved in another crash.

Keep Costs Low with Save Driving!

While there are some tactics when it comes to keeping costs low after an accident, the most beneficial solution is to practice safe driving. In fact, some insurance companies even offer lower premiums and other incentives for driving safe, which can be very beneficial to both your health and your wallet. If you continue to see a rise with your insurance premiums and you’ve followed many of the steps mentioned above, you might want to try another insurance company. Take advantage of the suggestions in this post to keep your rates low for many years to come!


Recommended Medicare Provider

Best For Customer Service

Additional Information & Tips

Auto Insurance Rates By State

Scout My Best Option

Policy Scout
Health Insurance
Policy Scout
Policy Scout
Life Insurance
Policy Scout
Auto Insurance
Policy Scout
Home Insurance
Policy Scout
Pet Insurance

Article Comments

Throughout the years, PolicyScout™ has developed relationships with leading insurance companies to provide the best rates for consumers. We pride ourselves on putting the consumers first and delivering a new way to shop for insurance online. With our platform, consumers can compare all types of insurance types. From Medicare, Health Insurance, Life Insurance, Auto Insurance, Home Insurance and more. By using our platform, we’ll protect your data, find you savings and even help you enroll for insurance online. We didn’t invent comparing insurance. We just perfected it.

All Rights Reserved by PolicyScout © 2020

Footer Shadow Background
Footer Background