How Much Does Car Insurance Go Up After an Accident?

Auto Insurance

Car accidents are stressful, and the aftermath can be overwhelming, especially when considering the financial implications. We’ve all heard the horror stories of outrageous monthly insurance premiums after an accident. How much of an increase can you expect? Let’s get into it.

Understanding the Impact of an Accident on Your Premiums

When you’re involved in an accident, your car insurance premiums are likely to increase. This is because insurers view you as a higher risk, which translates to higher costs for them. The exact increase in your premiums varies based on a few different factors. This includes:

  • Severity of the Accident: One minor fender-bender may result in little to no increase, while major accidents can lead to substantial hikes.
  • Fault: If you are found at fault for the accident, the increase in your premium will generally be more significant.
  • Claim History: If you have a history of multiple claims, your premiums are likely to rise more than if this is your first accident.
  • Insurance Provider: Different insurers have different policies regarding rate increases after an accident.
  • Location: The states have different laws about whether or not an insurer can raise your premium if the accident wasn’t your fault. For example, if you live in California, insurers are legally not allowed to increase your premiums for a no-fault accident.

Average Increase in Car Insurance Premiums

On average, drivers in Pennsylvania can expect their car insurance premiums to increase by approximately 30-50% after an accident. However, this is a very general estimate, and the actual increase can be lower or higher depending on your individual circumstances. In some cases, you could even be at fault in an accident and not see an increase.

How to Mitigate the Impact

While you can’t entirely avoid the increase in premiums after an accident, there are steps you can take to mitigate the impact:

  1. Drive Safe: This is by far the best and cheapest way to keep your insurance premiums low. There are simply no downsides to driving safely. It not only keeps your monthly costs stable, but might even make you eligible for safe driving discounts.
  2. Accident Forgiveness: Some insurers offer accident forgiveness programs, which prevent your first at-fault accident from affecting your premiums. Check with your provider to see if this is an option for you.
  3. Shop Around: Not all insurers increase rates in the same way. Shopping around for new quotes can help you find a more competitive rate.
  4. Increase Deductibles: Opting for a higher deductible can lower your premiums. However, be sure you can afford the out-of-pocket cost if another accident occurs.
  5. Bundle Policies: Many insurers offer discounts for bundling multiple policies, such as home and auto insurance. This can help reduce your overall costs.

What We Do at The Kind Insurance

First and foremost, we found our services on compassion. We understand that car accidents are scary and dealing with the aftermath is overwhelming. Our goal is to help you navigate these changes and find the most affordable car insurance options available. We are committed to working with you to ensure you have the coverage you need at a price that fits your budget. Whether you’re exploring accident forgiveness options, looking for safe driving discounts, or considering switching providers, we’re here to assist you every step of the way.

Give us a call to get answers to more of your insurance questions or find the ideal policy for you.

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