Car insurance rates can be a significant expense for drivers, and one factor that can cause rates to increase is getting into an accident. For drivers with a clean driving record and good credit, one accident can lead to a substantial increase in full-coverage car insurance rates. On average, rates can climb by 45% or more after an at-fault accident. This increase can vary depending on the insurance provider and the driver’s profile.
Among major providers, State Farm offers the lowest rate for drivers after a recent car accident, with an average of $1,953 per year. American Family Insurance, State Farm, Auto-Owners Insurance, and Travelers are among the companies that have the lowest rate increases after an accident. It’s important to note that all car accidents can raise insurance rates, regardless of fault. However, some insurance companies offer accident forgiveness for a driver’s first accident, which can prevent rates from increasing.
In addition to accidents, speeding tickets can also impact insurance rates. Drivers with a recent speeding ticket could see their rates increase by as much as 54% after being involved in an accident. The average rate increase after a speeding ticket and an accident is 39%. Again, rates may vary based on location, age, additional traffic violations, and other factors.
For drivers with multiple accidents, the rate increase can be even higher. A second at-fault accident can lead to insurance rates being raised by as much as 56%. State Farm offers the lowest annual rates for drivers with two recent accidents, at $2,084 per year.
Insurance rates after an accident also vary by state. Massachusetts residents experience the biggest rate hike after an accident, with an average increase of 101%. On the other hand, Maine residents pay the lowest rates after an accident, at $1,491 per year. Michigan drivers could end up paying as much as $6,032 annually after an accident.
To prevent rate increases after an accident, some insurance companies offer accident forgiveness programs. These programs can help drivers avoid rate hikes after their first at-fault accident. Additionally, drivers can take advantage of discount opportunities, raise their deductible, bundle their insurance policies, choose less coverage, or compare quotes from multiple providers to find the best deals.
Usage-based insurance (UBI) is another option for drivers looking to lower their rates after an accident. UBI programs monitor a driver’s habits behind the wheel and offer premium discounts based on safe driving behavior. By participating in a UBI program, drivers can potentially save up to 40% on their premiums.
In conclusion, getting into an accident can lead to a significant increase in car insurance rates. However, there are ways for drivers to prevent rate hikes and lower their premiums after an accident. By exploring options such as accident forgiveness, discount opportunities, and usage-based insurance programs, drivers can find ways to save on their car insurance costs.