Examples of Accidents That Impact Car Insurance Premiums
Insurance companies have specific criteria for determining what qualifies as an accident and assessing fault. Car insurance rates are calculated based on the potential costs of covering injuries and damages resulting from accidents involving you, your vehicle, and others. While insurance companies aim to provide coverage and make a profit, they also consider your driving record to gauge the likelihood of future accidents and adjust your premiums accordingly.
Fortunately, insurance companies recognize that not all accidents are avoidable and that fault cannot always be attributed to the policyholder. Although each insurance company has its own methodology for rate adjustments, accidents are generally treated similarly across the industry, with prices being adjusted based on the type of accident. Here are several common examples of accidents that may increase your car insurance rates.
- Single car accident: This refers to an accident involving only one vehicle, such as crashing into a tree or driving off the road. While single car accidents may not significantly impact your rates due to the absence of damage to another vehicle, your provider may view them as a sign of irresponsible driving, potentially resulting in increased premiums, particularly if injuries were sustained.
- Minor multiple car accident: If you were at fault in a minor car accident, such as a parking lot collision or fender bender, it may be challenging to avoid an increase in your car insurance rates. While minor accidents may not lead to significant rate hikes as long as the damage to the other vehicle is minimal, involvement in multiple minor accidents can result in higher premiums.
- Major multiple car accident: Being at fault in an accident that causes major injuries will significantly increase your car insurance premium. Insurance companies bear substantial costs when such accidents occur, and your driving history will be negatively impacted for several years. However, if you maintain a clean record for three to five years following a major accident, your rates may return to normal.
- Accidents caused by a DUI: Accidents involving driving under the influence (DUI) have the most substantial impact on insurance premiums. Even if there was no accident involved, receiving a DUI can result in increased rates. If you are involved in a car crash while under the influence, your car insurance rates will skyrocket, and it may become difficult to find coverage with multiple DUI-related accidents on your record.
- No-fault accident: A no-fault accident occurs when you are involved in an accident that you did not cause. While insurance companies acknowledge that such accidents can happen even if you are a responsible driver, some states with no-fault car insurance still increase rates regardless of fault. If you reside in one of these states, your rates may rise even if you were not responsible for the accident.
- Hit-and-run accident: A hit-and-run accident occurs when another party involved in the accident flees the scene. In most cases, you will not be held responsible for the accident, and your rates will not increase. However, you will need to provide evidence that another vehicle was involved and left the scene.
Car Insurance Prices By State Following An Accident
The following lists the potential increases in vehicle insurance rates in each state following an accident.
Keep in mind that these rates can change depending on the year and other elements.
Always get specific pricing and information from your auto insurance provider.
State | Yearly Insurance Rate | Post-Accident Rate | % Difference |
Michigan | $6,882 | $14,131 | 105 |
New Jersey | $2,387 | $4,539 | 90 |
California | $1,932 | $3,550 | 84 |
Louisiana | $3,082 | $5,226 | 70 |
Texas | $2,497 | $4,194 | 68 |
North Carolina | $1,379 | $2,309 | 67 |
Florida | $2,751 | $4,549 | 65 |
Illinois | $2,049 | $3,340 | 63 |
Indiana | $1,441 | $2,339 | 62 |
Georgia | $2,204 | $3,528 | 60 |
Arizona | $2,753 | $4,401 | 60 |
Nevada | $2,986 | $4,744 | 59 |
Oregon | $2,304 | $3,659 | 59 |
Maryland | $2,303 | $3,631 | 58 |
Maine | $1,286 | $2,011 | 56 |
New Hampshire | $1,955 | $3,038 | 55 |
Wyoming | $1,776 | $2,755 | 55 |
Minnesota | $2,099 | $3,248 | 55 |
Kentucky | $2,831 | $4,295 | 52 |
South Carolina | $1,996 | $3,023 | 51 |
Utah | $2,423 | $3,622 | 49 |
Massachusetts | $2,234 | $3,304 | 48 |
Vermont | $1,668 | $2,440 | 46 |
Missouri | $2,458 | $3,592 | 46 |
Virginia | $1,613 | $2,345 | 45 |
Wisconsin | $1,568 | $2,272 | 45 |
Mississippi | $2,215 | $3,198 | 44 |
Alabama | $2,087 | $2,984 | 43 |
Colorado | $3,255 | $4,650 | 43 |
Connecticut | $2,852 | $4,062 | 42 |
Delaware | $2,915 | $4,132 | 42 |
New York | $2,565 | $3,627 | 41 |
West Virginia | $2,108 | $2,967 | 41 |
Arkansas | $2,200 | $3,094 | 41 |
Hawaii | $1,680 | $2,358 | 40 |
Ohio | $1,576 | $2,203 | 40 |
Alaska | $1,526 | $2,132 | 40 |
Washington | $1,814 | $2,530 | 40 |
Oklahoma | $2,551 | $3,550 | 39 |
Montana | $2,370 | $3,194 | 35 |
Iowa | $1,748 | $2,337 | 34 |
North Dakota | $2,315 | $3,077 | 33 |
Rhode Island | $3,300 | $4,249 | 29 |
Tennessee | $2,045 | $2,601 | 27 |
Pennsylvania | $2,095 | $2,648 | 26 |
South Dakota | $2,561 | $3,201 | 25 |
New Mexico | $2,338 | $2,904 | 24 |
Idaho | $1,886 | $2,292 | 22 |
Nebraska | $2,674 | $3,104 | 16 |
Kansas | $2,571 | $2,767 | 8 |