Do Car Insurance Costs Increase After a Claim?

After an accident, you may need to file a claim to help pay for damages or injuries. But before filing a claim, it’s important to know that your auto insurance rates may increase with your current insurer or the next time you shop rates. When determining rates, insurers often look at your claims history, plus other factors like your age, location, driving history, vehicle type, and more.

Here’s a closer look at how insurance claims affect your premiums.

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How do claims affect your insurance premium?

Insurers typically see you as a more high-risk driver after you file a claim — especially if the claim is for an at-fault accident. And they may raise your rates to counteract this risk. Filing a claim can raise premiums by as much as 35%, Insurify data shows.

For example, a full-coverage car insurance policy costs an average of $187 per month for a driver with a claims-free history. But drivers with one or more incidents on their record often pay upward of $227 per month for full coverage.

Claim severity, frequency, and quantity

During the underwriting process, car insurance companies analyze various data points to assess risk factors that affect rates. Insurers pay close attention to your claims history.

Insurers typically evaluate your claims history based on three key factors:

• Quantity: The total number of claims you’ve filed

• Frequency: How often you file claims within a specific time period

• Severity: The cost of each claim

These factors help insurers assess your risk and calculate your premiums. When the number, frequency, and severity of your claims increase, you’ll likely pay more for insurance.^[1]

Types of claims

Some claim types have a greater effect on your policy rates than others — particularly when you’re at fault. A minor fender bender will likely raise your premiums less than a multi-car accident with extensive car damage. Meanwhile, a claim for a broken windshield may have little to no effect on your rate.

In short, the more your insurer pays out during a claim, the more your premiums will increase.

At-fault vs. no-fault claims

Some states are tort (or at-fault) states, while others are no-fault states. In tort states, each person’s insurer works together to evaluate the incident and assign fault. The at-fault driver’s insurance company must cover the affected people’s injuries.

In a no-fault state, your insurance company covers you and your passengers’ medical costs — regardless of fault. Since no-fault claim payouts are usually higher, insurers often charge higher premiums in no-fault states than in tort states.^[2]

Average car insurance rates for drivers with an incident

Drivers with past incidents generally pay higher rates than people with a clean driving record. The table below shows the average monthly cost of a full-coverage and a liability-only auto policy for various driving profiles.

Driving History	Average Quote: Full Coverage	Average Quote: Liability Only
Clean record	$187	$98
At-fault accident	$251	$131
Speeding ticket	$242	$127
DUI	$268	$140

Disclaimer: Table data sourced from real-time quotes from Insurify's 500+ partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer's unique driver profile.

Other factors that affect auto insurance premiums

Besides claims, other factors that influence your auto insurance cost include your:^[3]

• Age and gender: Because women and older drivers get into fewer accidents than men and younger drivers, they typically pay lower insurance rates.

• Driving history: Insurance companies consider people with more DUIs, speeding tickets, at-fault car accidents, and claims filed as higher-risk drivers. These drivers tend to have higher car insurance rates.

• Vehicle: Characteristics such as your vehicle’s make and model, age, and safety features influence your costs. Safer vehicles and cars with lower repair costs generally have cheaper premiums.

• Coverages: If you purchase more car insurance protection, you’ll pay higher premiums. Also, a lower deductible (what you pay before receiving your claim payout) leads to higher premiums, and vice versa.

• Location: ZIP codes with increased claim risks have higher premiums. Insurers assess urban versus rural and weather risks — as well as the cost of living — to calculate your rates. 

• Credit history: In some states, insurance companies can use your credit-based insurance score to predict your likelihood of filing a claim. Good credit indicates you may have a lower probability of filing a claim, which leads to cheaper premiums.^[4]

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How can you lower your premium after an accident?

Seeing your rates increase after an auto accident can be frustrating. The good news is that you can take action to reduce your policy costs.

Here are some things you can do to reduce rates:

• 

  Improve your driving record

  One of the best ways to lower your rates is by staying violation- and claims-free. Taking a defensive driving course can help you become a safer driver and may even result in a discount.

• 

  Shop around for a better price

  Companies calculate premiums differently, so switching to a different insurer may help you find more competitive rates. A quote-comparison tool generates multiple quotes at once to find the best deal on the coverages you need.

• 

  Increase your deductible

  A higher deductible can keep insurance premiums low after an accident. Before boosting your deductible, be sure you can afford the increase if you need to file a claim.

• 

  Get accident forgiveness

  Many companies offer this optional coverage to keep your premium from increasing after your first accident. But you must have purchased it before the incident to qualify.

• 

  Reduce your coverage

  Consider removing comprehensive and collision coverage if you can pay for your vehicle repairs out of pocket or you own an older car worth less than its repair cost. This can help reduce your monthly rate.

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