How To Lower Car Insurance After An Accident (original) (raw)
Key Points:
- Shopping around is one of the best ways to find a lower rate after an accident.
- If you’re a young driver or senior, you can save a good amount by taking a driver education course.
- Usage-based insurance can provide big discounts based on your driving habits, not your past record.
After an at-fault car accident, you’re probably worried about how your insurance rates will be impacted. It’s not uncommon to see insurance premiums increase, but luckily there are a few ways to get lower car insurance after an accident.
Car accidents are not only emotionally and physically taxing, they can also put a dent in your wallet. In this article, we describe a few simple ways you can save yourself money by lowering car insurance expenses after an at-fault accident. We’ve also taken the time to review the top auto insurance companies if you are considering a new provider in the aftermath of a collision.
1. Find A Car Insurance Provider With A Lower Premium
The cheapest car insurance company for your situation might change after you get into an accident. Providers vary in their average car insurance rates for drivers with at-fault accidents. Below, you can see a variety of major providers ranked by their average cost for a 30-year-old male driver with one at-fault accident.
| Provider | Annual Cost After Accident | Monthly Cost After Accident |
|---|---|---|
| Auto-Owners | 1,937∣1,937 | 1,937∣161 |
| State Farm | 1,997∣1,997 | 1,997∣166 |
| USAA | 2,078∣2,078 | 2,078∣173 |
| Travelers | 2,142∣2,142 | 2,142∣179 |
| Erie | 2,327∣2,327 | 2,327∣194 |
| Nationwide | 2,594∣2,594 | 2,594∣216 |
| Progressive | 2,742∣2,742 | 2,742∣228 |
| Geico | 2,748∣2,748 | 2,748∣229 |
| American Family | 3,002∣3,002 | 3,002∣250 |
| Allstate | 3,844∣3,844 | 3,844∣320 |
| Farmers | 4,035∣4,035 | 4,035∣336 |
Whenever you shop for car insurance, we recommend getting quotes from multiple providers so you can compare insurance coverage and choose the company that can offer you the lowest rates. In addition to the insurance company you choose, factors such as your age, vehicle make and model, and driving history can affect your premium, so what’s best for your neighbor might not be best for you.
2. Change Your Coverage
Comprehensive car insurance covers non-collision damage that is out of your control, such as damage from a storm, fire, or theft. Collision insurance covers your vehicle damage when you get into an accident.
Both of these are mandatory when you have an auto loan, but you can choose to go without them if you own your vehicle outright. Generally speaking, comprehensive and collision coverage aren’t worth it if your car’s value is under $5,000.
Of course, stopping comprehensive coverage could expose you to heavy costs if a natural disaster or vandalism impacted your vehicle. If you have a very old car with low value that you hope to replace soon, it might be worth dropping this coverage. If you have a relatively new car that you would like to drive for many more years, then dropping this coverage is not recommended.
You can also change your deductible amounts for these coverages. Choosing a higher deductible will lower your car insurance premium.
3. Join A Usage-Based Car Insurance Program
If you drive infrequently and avoid night-time trips, you might save quite a bit with a usage-based program. When you sign up for one of these programs, an app or telemetric device will track your driving habits. It may track things like time of day, average miles, braking, and acceleration. After an evaluation period, the insurance company will award you a discount based on your driving.
Popular usage-based programs include State Farm’s Drive Safe & Save™, Progressive’s Snapshot®, and Allstate’s Drivewise®. You could also consider purchasing Allstate Milewise®, which charges you exclusively by the mile.
4. Work On Your Credit Score
Many drivers know that car insurance companies consider a driver’s accident history and driving record when determining rates, but did you know that a driver’s credit score can also affect car insurance premiums?
Credit history has been correlated with the likelihood someone will file a claim, so insurance companies can use credit-based scoring systems in most states to calculate rates. If you live in one of these states, improving your credit can lower your rates. (All states except California, Hawaii, Massachusetts, and Michigan allow credit-based insurance scores.)
5. Take A Driver’s Ed Or Defensive Driving Course
Another way to lower your insurance rates after an accident is to take a driving education course. Many companies offer discounts for an approved driver’s course, which usually applies to younger drivers, and defensive driving courses, which apply to older drivers. Check with your insurance company to see what discounts it offers. You can also look for driver’s education discounts when you compare companies for cheaper coverage.
Can Accident Forgiveness Help?
Accidents are a part of life, and some auto insurance companies offer accident forgiveness insurance to recognize that. The conditions required by each insurance company for accident forgiveness coverage are different.
If the coverage isn’t an added perk with the purchase of an auto insurance policy, you may be able to add it for a one-time rate increase. Some insurance companies forgive your first at-fault accident, and others forgive an accident after carrying insurance with it for three to five years.
If you already had accident forgiveness, it should keep your rates from rising (unless you’ve had more than one accident). However, you can’t buy accident forgiveness to apply to an accident that already happened. It will only apply to the next accident after you purchase the add-on.
Companies that offer accident forgiveness include:
How Does a Car Accident Affect Car Insurance Rates?
When shopping for car insurance, it’s good to keep in mind how a car accident will affect insurance rates. We looked at rate estimates for 30-year-old male drivers. In the table below, you can see how much the average annual premium for a full-coverage insurance policy may cost after an auto accident.
| State | Cost Before Accident | Cost After Accident | Difference |
|---|---|---|---|
| Alabama | 1,693∣1,693 | 1,693∣2,343 | 38% |
| Alaska | 1,637∣1,637 | 1,637∣2,181 | 33% |
| Arizona | 1,767∣1,767 | 1,767∣2,555 | 45% |
| Arkansas | 1,832∣1,832 | 1,832∣2,759 | 51% |
| California | 2,049∣2,049 | 2,049∣3,730 | 82% |
| Colorado | 2,020∣2,020 | 2,020∣2,886 | 43% |
| Connecticut | 2,221∣2,221 | 2,221∣3,149 | 42% |
| Delaware | 2,960∣2,960 | 2,960∣4,118 | 39% |
| District of Columbia | 1,773∣1,773 | 1,773∣2,554 | 44% |
| Florida | 3,802∣3,802 | 3,802∣5,397 | 42% |
| Georgia | 1,943∣1,943 | 1,943∣2,961 | 52% |
| Hawaii | 1,186∣1,186 | 1,186∣1,667 | 41% |
| Idaho | 1,087∣1,087 | 1,087∣1,622 | 49% |
| Illinois | 1,970∣1,970 | 1,970∣2,892 | 47% |
| Indiana | 1,407∣1,407 | 1,407∣2,064 | 47% |
| Iowa | 1,332∣1,332 | 1,332∣1,853 | 39% |
| Kansas | 1,800∣1,800 | 1,800∣2,701 | 50% |
| Kentucky | 1,828∣1,828 | 1,828∣2,769 | 51% |
| Louisiana | 3,260∣3,260 | 3,260∣4,641 | 42% |
| Maine | 1,047∣1,047 | 1,047∣1,507 | 44% |
| Maryland | 2,776∣2,776 | 2,776∣4,393 | 58% |
| Massachusetts | 2,830∣2,830 | 2,830∣4,521 | 60% |
| Michigan | 3,384∣3,384 | 3,384∣4,851 | 43% |
| Minnesota | 2,115∣2,115 | 2,115∣3,235 | 53% |
| Mississippi | 1,674∣1,674 | 1,674∣2,542 | 52% |
| Missouri | 1,760∣1,760 | 1,760∣2,549 | 45% |
| Montana | 1,826∣1,826 | 1,826∣2,633 | 44% |
| Nebraska | 1,524∣1,524 | 1,524∣2,192 | 44% |
| Nevada | 3,009∣3,009 | 3,009∣4,620 | 54% |
| New Hampshire | 1,262∣1,262 | 1,262∣1,921 | 52% |
| New Jersey | 2,380∣2,380 | 2,380∣3,934 | 65% |
| New Mexico | 2,189∣2,189 | 2,189∣3,054 | 40% |
| New York | 3,205∣3,205 | 3,205∣4,354 | 36% |
| North Carolina | 1,310∣1,310 | 1,310∣2,220 | 69% |
| North Dakota | 1,238∣1,238 | 1,238∣1,703 | 38% |
| Ohio | 1,349∣1,349 | 1,349∣1,912 | 42% |
| Oklahoma | 2,061∣2,061 | 2,061∣2,844 | 38% |
| Oregon | 1,521∣1,521 | 1,521∣2,310 | 52% |
| Pennsylvania | 3,402∣3,402 | 3,402∣5,024 | 48% |
| Rhode Island | 2,469∣2,469 | 2,469∣2,552 | 3% |
| South Carolina | 1,960∣1,960 | 1,960∣2,583 | 32% |
| South Dakota | 2,069∣2,069 | 2,069∣3,037 | 47% |
| Tennessee | 1,503∣1,503 | 1,503∣2,166 | 44% |
| Texas | 2,331∣2,331 | 2,331∣3,618 | 55% |
| Utah | 1,950∣1,950 | 1,950∣2,894 | 48% |
| Vermont | 993∣993 | 993∣1,421 | 43% |
| Virginia | 1,482∣1,482 | 1,482∣2,219 | 50% |
| Washington | 1,471∣1,471 | 1,471∣2,152 | 46% |
| West Virginia | 1,570∣1,570 | 1,570∣2,136 | 36% |
| Wisconsin | 1,836∣1,836 | 1,836∣2,792 | 52% |
| Wyoming | 1,248∣1,248 | 1,248∣1,653 | 32% |
How To Lower Car Insurance After An Accident: Our Take
Don’t lose hope if your rates skyrocket after an accident. You can lower your car insurance after an accident by shopping around for another provider, trying a usage-based program, working on your credit score, taking a driver’s ed course, or changing your coverage amounts.
Best Car Insurance Companies After An Accident
The aftermath of an accident is a great time to compare your current auto insurance provider’s offerings to those of other leading providers. Below, learn why we trust State Farm and Geico insurance policies to help lower car insurance after an accident.
State Farm: Best Overall Provider
State Farm’s Drive Safe & Save™ is a great way to lower your rate if you’re a good driver. You can save up to 30 percent depending on your driving habits. The company also offers a program called Steer Clear®, which awards discounts to young drivers after they complete an educational course and practice sessions. State Farm offers discounts for good students, safe drivers, customers who bundle multiple policies, and more.
Read more: State Farm insurance review
Geico: Best For Basic Coverage
If you’re shopping around for new auto insurance, Geico might offer great rates. The company has a user-friendly mobile app that allows you to manage your account settings and quickly file a claim at the site of a collision. This insurer also has good discounts to help you lower your premium, like having certain safety features installed on your car.
Read more: Geico Insurance review
How To Lower Car Insurance After An Accident: FAQ
Below are a few frequently asked questions on lowering car insurance after an accident.
How can I lower my car insurance fast?
You can reduce your car insurance costs in a variety of ways. Most commonly people will increase their deductible, look for discount opportunities, or compare quotes from other insurers. In the long term, you can maintain good credit and good driving habits. Some companies offer discounts with usage-based programs or after the completion of a defensive driving course.
How long does it take to lower your car insurance?
Speeding tickets and at-fault accidents usually fall off of your insurance record after three years. At that point, you’ll likely see a reduction in insurance rates. More serious issues like a DUI conviction might stay on your record for longer.
How long does an insurance claim stay on your record?
Depending on the severity of the damage, a car insurance claim can stay on your driving record for anywhere between three and seven years.
How We Rate Auto Insurers
Our review team extensively researches auto insurance providers to deliver informed and unbiased assessments of leading companies. We evaluate several key rating factors that are important to consumers to determine which providers are the best in the industry:
- Reliability: It’s important that an auto insurer is able to meet its claims obligations. Companies with a strong financial strength rating from AM Best score best in this category. Established insurers with a long history of reliable service also receive positive marks.
- Availability: Insurance companies that offer wider availability to consumers in terms of state availability and few eligibility requirements are more likely to meet consumer needs.
- Coverage: To determine our coverage score, we look at the number of coverage options available as well as coverage limits and deductible options. Our ratings also take into account additional services and benefits like roadside assistance.
- Pricing: Cost can be difficult to compare between insurers because so many factors impact annual premiums. The cheapest insurer for one driver may not be the cheapest for another. To determine our cost score, we look at insurance rate estimates generated by Quadrant Information Services, discount opportunities, and consumer reports.
- Service: We comb through customer reviews on sites like the Better Business Bureau (BBB) to learn about customer experiences. Insurers with a low volume of complaints score well in this area. We also consider the claims process, giving higher ratings to car insurance providers that offer a smooth experience.
- Technology: Providers with an online quote tool, easy-to-use claims app and a usage-based insurance app score best in this category.
*Data accurate at time of publication.