How to Compare Insurance Rates After an Accident
Getting into a car accident can be stressful, especially when you're worried that your car insurance rates will increase. If your insurer raises your premium after an accident, you may wonder whether switching companies could help you find a better rate.
The good news is that you don't have to automatically accept your new premium. Comparing car insurance quotes after an accident can help you understand what other insurers may charge for similar coverage.
Here's how to compare insurance rates after an accident and what to look for before switching policies.
Does Your Car Insurance Go Up After an Accident?
An accident can cause your auto insurance premium to increase, particularly if you were found at fault. However, the amount of the increase varies between insurance companies and depends on several factors.
Insurers may consider:
Whether you were at fault
The severity of the accident
The cost of the claim
Your previous driving record
Your claims history
Where you live
Your insurance coverage
Whether you qualify for accident forgiveness
Some accidents may have little or no effect on your premium, while a serious at-fault accident can result in a significant increase.
Before shopping for another policy, ask your current insurer how the accident will affect your premium at your next renewal.
1. Review Your Current Auto Insurance Policy
Before comparing insurance rates, understand exactly what you're paying for now.
Look at your declarations page and write down your:
Current premium
Liability coverage limits
Collision coverage
Comprehensive coverage
Deductibles
Uninsured and underinsured motorist coverage
Rental car coverage
Roadside assistance
Available discounts
This information gives you a baseline for comparing quotes from other insurance companies.
2. Get Multiple Car Insurance Quotes
One of the best ways to find competitive car insurance rates after an accident is to compare quotes from multiple insurers.
Don't assume that one company will always be cheaper than another. Insurance companies use different formulas to calculate risk, meaning an accident may affect your rate differently depending on the insurer.
When requesting quotes, provide the same information to each company, including your accident history, vehicle details, ZIP code, mileage, and desired coverage.
Being honest about your accident is important because insurers may verify your driving and claims history.
3. Compare the Same Coverage Limits
A common mistake is choosing the cheapest quote without checking whether the policies provide comparable protection.
For example, one insurer might quote $130 per month while another charges $160. The cheaper policy isn't necessarily the better value if it has lower liability limits or higher deductibles.
When comparing auto insurance quotes, check the same:
Liability limits
Collision coverage
Comprehensive coverage
Deductibles
Uninsured/underinsured motorist coverage
Medical payments or personal injury protection, where applicable
Try to compare apples to apples rather than simply choosing the lowest monthly premium.
4. Ask About Accident Forgiveness
Accident forgiveness is an optional feature offered by some insurance companies that may prevent a qualifying accident from causing your premium to increase.
Eligibility requirements vary by insurer. Some companies require drivers to have a clean record for a certain period before an accident.
If you're shopping for car insurance after an accident, ask each insurer whether accident forgiveness is available and whether you qualify.
5. Look for Car Insurance Discounts
An accident doesn't necessarily mean you've lost access to every insurance discount.
Depending on the insurer, you may qualify for discounts for:
Bundling auto and home insurance
Insuring multiple vehicles
Completing an approved defensive driving course
Installing certain safety or anti-theft devices
Using automatic payments
Paying your premium in full
Participating in a usage-based or telematics program
Ask each insurer to identify every discount you may qualify for before comparing the final price.
6. Consider Changing Your Deductible
Your deductible is the amount you generally pay out of pocket before your insurer pays a covered claim.
For example, increasing a collision deductible from $500 to $1,000 could lower your premium.
However, make sure you can afford the higher deductible if you need to file another claim. Saving money each month may not be worthwhile if the deductible would create a financial problem after an accident.
7. Don't Choose Insurance Based on Price Alone
Price is important, but it shouldn't be the only factor.
When comparing insurers, consider:
Coverage limits
Deductibles
Claims handling
Customer service
Financial strength
Available discounts
Policy exclusions
Additional benefits
A policy that costs slightly more may provide coverage that better fits your circumstances.
8. Shop Around Before Your Policy Renews
You don't have to wait until your insurance policy expires to start comparing rates.
Begin shopping several weeks before your renewal date. This gives you time to obtain quotes, review coverage, ask questions, and decide whether changing insurers makes sense.
If you switch companies, make sure the new policy is active before canceling your existing coverage. A lapse in auto insurance can create additional problems and may affect future rates.
How Long Does an Accident Affect Car Insurance Rates?
The length of time an accident affects your insurance rate varies by state, insurer, and the type of accident.
An accident may remain on your driving or claims history for several years, but that doesn't necessarily mean your premium will remain elevated for the entire period.
Ask your insurer how long the accident is expected to affect your premium and when you may become eligible for lower rates again.
Frequently Asked Questions
Can I switch car insurance after an accident?
Yes. In general, you can shop for another insurer after an accident. However, you should disclose the accident when requesting a quote because insurers may review your driving and claims history.
How much does insurance increase after an accident?
There isn't one fixed increase for every driver. The impact depends on factors such as fault, claim severity, driving history, location, insurer, and the type of coverage involved.
Should I switch insurance companies after an accident?
Comparing quotes can help you determine whether another insurer offers different pricing for similar coverage. Before switching, compare both the price and the protection provided.
Does accident forgiveness prevent an insurance increase?
It can, but only when the accident and driver meet the insurer's eligibility requirements. Accident forgiveness rules vary between companies and states.
How can I lower my car insurance after an accident?
You can compare quotes from multiple insurers, ask about discounts, review your coverage, consider your deductible, and maintain a clean driving record going forward.
Final Thoughts
An accident can make car insurance more expensive, but your current premium isn't necessarily the only price available to you.
Take the time to compare multiple car insurance quotes after an accident, using the same coverage limits and deductibles for each quote. Look beyond the monthly price and consider the overall value of the policy.
By shopping around before your next renewal, you may find coverage that fits your needs and budget more closely.
