How Long Does an Accident Stay on Your Insurance? (And How Much Rates Go Up)
An at-fault car accident stays on your insurance record for three to five years in most states, and it raises your premiums by an average of 48 to 50 percent according to 2026 data from NerdWallet and WalletHub. On a typical full-coverage policy costing $2,300 a year, that translates to roughly $1,100 extra per year — or about $3,300 to $5,500 over the three-to-five-year surcharge period. Some insurers hit harder than others. GEICO raises rates by an average of 73 percent after an at-fault accident. State Farm raises them by just 14 percent.
Those are averages. Your actual increase depends on your insurer, your state, who was at fault, the severity of the crash, and your driving history before the accident. A fender bender with $800 in damage plays out very differently than a multi-vehicle collision with injuries. And a first-time accident with 15 years of clean driving behind it gets treated differently than a second accident in three years.
Key Takeaways
- At-fault accidents raise premiums by 48-50% on average (range: 0% to 73%+ depending on insurer)
- Accidents stay on your record for 3-5 years in most states (up to 10 years in some)
- Not-at-fault accidents raise rates by about 4% on average — some insurers don’t raise them at all
- Accident forgiveness prevents a rate increase on your first at-fault accident (available from most major carriers)
- Shopping around after an accident is the single most effective way to lower your post-accident rate
- Cheapest insurers after an accident: State Farm (14% increase), AAA, USAA (military only), NJM (5 states)
How Much Does Insurance Go Up After an Accident?
The national average rate increase after an at-fault accident is 48 to 50 percent, but that number hides enormous variation by insurer. Here is what the major carriers actually charge after a single at-fault accident, based on 2026 rate data.
| Insurance Company | Avg. Rate Increase After At-Fault Accident | Notes |
|---|---|---|
| State Farm | 14% | Consistently the lowest surcharge among major carriers |
| USAA | 18% | Military members and families only |
| AAA | 22% | Varies by regional AAA club |
| Progressive | 34% | Small-accident forgiveness included on most policies (claims under $500) |
| Allstate | 43% | Accident forgiveness available as paid add-on |
| Nationwide | 55% | One of the highest surcharges among major carriers |
| GEICO | 73% | Highest average increase of any major insurer |
The gap between State Farm’s 14 percent increase and GEICO’s 73 percent increase on the same accident is not a typo. Insurance companies use completely different rating algorithms, and the weight they assign to accident history varies dramatically. This is exactly why shopping around after an accident matters more than at any other time — the company that was cheapest before your accident may not be cheapest after it.
How Long Does an Accident Stay on Your Insurance Record?
Most insurers consider at-fault accidents for three years when calculating your premium. Some states and companies extend that window to five years, and a few look back as far as seven to ten years for severe accidents (particularly those involving DUI or injuries).
The three-to-five-year window means the surcharge is not permanent. Once the accident ages off your record, your rate should return to what a clean-record driver would pay — assuming no new incidents in the meantime. Some insurers reduce the surcharge gradually each year rather than removing it all at once. So a 50 percent increase in year one might drop to 35 percent in year two, 20 percent in year three, and zero in year four.
Your driving record — maintained by your state’s DMV — and your claims history — tracked by the Comprehensive Loss Underwriting Exchange (CLUE) and LexisNexis — are separate reports. An accident stays on your DMV record based on state law (typically three to five years). On your CLUE report, claims stay for five to seven years regardless of state. Insurers check both.
At-Fault vs. Not-at-Fault: Does It Matter?
It matters enormously. A not-at-fault accident raises rates by an average of just 4 percent, compared to 48 to 50 percent for an at-fault accident. Many insurers do not raise rates at all for accidents where you were not the responsible party.
Here is where it gets complicated. In no-fault states (Florida, Michigan, New York, and nine others), your own insurance pays for your injuries regardless of who caused the accident. Filing a claim under your own policy — even if you did not cause the accident — can trigger a surcharge in some no-fault states because the claim shows up on your CLUE report. Check with your insurer before filing if you are in a no-fault state and the damage is minor enough to consider paying out of pocket.
Some states have specific protections against not-at-fault surcharges. California, Oklahoma, and several others prohibit insurers from raising rates solely because of a not-at-fault accident. Your state’s insurance department website is the definitive source for what your state allows.
How to Lower Your Insurance Rate After an Accident
Shop Around — This Is the Biggest Lever
The single most effective way to lower your post-accident rate is to get quotes from at least five to seven insurers. The 59-percentage-point spread between State Farm (14%) and GEICO (73%) shows that the same accident can cost you an extra $300 per year or an extra $1,700 per year depending entirely on which company you are with. Comparison tools like The Zebra, NerdWallet, and ValuePenguin let you compare quotes from dozens of carriers in one session.
Take a Defensive Driving Course
Most states allow insurers to offer a discount — typically 5 to 15 percent — for completing an approved defensive driving or accident prevention course. In New York, completing the Point and Insurance Reduction Program (PIRP) reduces premiums by 10 percent for three years. Courses run $20 to $50 online and take four to six hours. The premium savings usually exceed the course cost within the first month.
Add Accident Forgiveness Before You Need It
Accident forgiveness is a policy endorsement that prevents your rate from increasing after your first at-fault accident. Some carriers include it automatically (Progressive includes small-accident forgiveness on most policies). Others sell it as a paid add-on for $50 to $150 per year. If you have a clean record, adding accident forgiveness now protects you against a potential $1,100-per-year surcharge later. The math strongly favors buying it proactively.
Raise Your Deductible
Increasing your collision and comprehensive deductible from $500 to $1,000 typically lowers your premium by 15 to 30 percent. After an accident, when your base rate is already elevated, this percentage reduction applies to a larger number — which makes the dollar savings bigger. Just make sure you can afford the higher deductible if you need to file another claim.
Bundle Your Policies
If you have homeowners or renters insurance with a different company, bundling auto and home with one carrier usually saves 10 to 25 percent. After an accident, when your auto rate has jumped, that bundling discount offsets a meaningful chunk of the surcharge. Get bundled quotes alongside standalone auto quotes when you are comparison shopping.
Ask About Usage-Based or Telematics Programs
Programs like Progressive’s Snapshot, Allstate’s Drivewise, and State Farm’s Drive Safe & Save track your actual driving behavior — speed, braking, mileage, time of day — and adjust your rate accordingly. If you are a safe driver who happened to have one accident, telematics data can demonstrate that to your insurer and earn discounts of 10 to 40 percent. These programs are especially valuable for drivers whose accident record does not reflect their overall driving habits.
State-by-State Differences That Matter
Where you live affects how much an accident costs you on your insurance. California has some of the largest rate increases after an at-fault accident — premiums nearly double on average. Pennsylvania has one of the smallest increases at about 13 percent. The variation comes from differences in state insurance regulation, no-fault laws, claims costs, and local competition among insurers.
Some states restrict how insurers can use accident history. California prohibits surcharges for not-at-fault accidents. Massachusetts assigns accident surcharges through a centralized state system rather than leaving it to individual insurers. Michigan’s no-fault system creates unique dynamics because PIP claims are paid regardless of fault. Your state insurance department’s website — searchable through the National Association of Insurance Commissioners directory — is the authoritative source for what rules apply in your state.
When It Makes Sense to Pay Out of Pocket Instead of Filing a Claim
Not every accident needs to become an insurance claim. If the damage is minor — under $1,000 to $2,000 — and you were at fault, paying for repairs yourself may cost less over three to five years than the premium increase from filing a claim. Here is the rough math.
Say the repair costs $1,200. Filing a claim triggers a 48 percent surcharge on your $2,300 annual premium, adding $1,100 per year for three years — $3,300 total in extra premiums. Paying the $1,200 repair out of pocket saves you $2,100 over three years. The breakeven point depends on your premium, your insurer’s surcharge rate, and how long the surcharge lasts, but the general rule is: if the damage is less than twice your annual surcharge, paying cash is cheaper.
This calculus does not apply to accidents involving injuries or damage to other people’s property. If anyone is hurt or another driver’s vehicle is damaged, file the claim. That is what liability insurance exists for, and the financial exposure from an uninsured injury claim dwarfs any premium increase.
Frequently Asked Questions
How long does a car accident stay on your insurance record?+
Most insurers consider at-fault accidents for three to five years when setting your premium. The surcharge typically decreases each year and drops off entirely once the lookback window closes. Your CLUE claims report retains accident data for five to seven years, and your state DMV record keeps it for three to five years depending on state law. Severe accidents involving DUI or serious injury may be considered for up to ten years by some insurers.
Does insurance go up after a not-at-fault accident?+
On average, rates increase by about 4 percent after a not-at-fault accident. Many insurers do not raise rates at all when you were not responsible for the crash. However, filing any claim creates a record on your CLUE report, and some companies factor claim frequency into pricing regardless of fault. Several states — including California and Oklahoma — prohibit insurers from surcharging drivers for not-at-fault accidents.
What is accident forgiveness and is it worth it?+
Accident forgiveness is a policy endorsement that prevents your rate from increasing after your first at-fault accident. Some carriers include it automatically, while others charge $50 to $150 per year as an add-on. Given that the average at-fault accident surcharge is $1,100 per year lasting three to five years ($3,300 to $5,500 total), paying $50 to $150 per year for accident forgiveness is a strong financial bet for most drivers.
Should I file a claim for a minor accident?+
It depends on the damage amount. If the repair costs less than roughly $1,500 to $2,000 and you were at fault, paying out of pocket often costs less over three to five years than the resulting premium increase. But if anyone was injured, if another driver’s property was damaged, or if the repair cost exceeds your savings, file the claim — that is what insurance is designed for. Never avoid filing a claim involving injuries.
Can I switch insurance companies after an accident?+
Yes, you can switch at any time — and after an accident is often the best time to do so. Different insurers weigh accident history very differently, so the company that was cheapest before your accident may not be cheapest after. Compare quotes from at least five carriers. Just make sure any open claim with your current insurer is not affected by switching — your current insurer is obligated to pay valid claims regardless of whether you renew the policy.
Disclaimer: This article is for informational purposes only and does not constitute insurance or legal advice. Rate increases vary by insurer, state, and individual circumstances. Contact your insurance company or a licensed agent for specific guidance about your policy.