How to Lower Your Car Insurance After an Accident
An at-fault accident can increase your insurance by 40-50% or more. But there are concrete steps you can take to minimize the damage and get your rates back down.
How Much Do Rates Increase?
Average rate increases by accident severity:
Rate increases typically last 3-5 years.
Immediate Steps After Rate Increase
1. Shop Around Aggressively
After an accident is exactly when you should compare quotes:
2. Ask About Accident Forgiveness
If you had it before the accident:
To get it for the future:
3. Take a Defensive Driving Course
Benefits include:
4. Increase Your Deductible
Trade higher out-of-pocket costs for lower premiums:
| Deductible | Typical Savings |
|------------|-----------------|
| $500 → $1,000 | 10-15% |
| $1,000 → $2,000 | 8-12% |
| $2,000 → $2,500 | 5-8% |
Make sure you can afford the higher deductible if needed.
Longer-Term Strategies
5. Bundle Your Policies
Combine auto with:
Bundling can offset your rate increase significantly.
6. Install Telematics Device
Usage-based insurance programs:
These track your driving and reward safe behavior.
7. Improve Your Credit Score
In most states, credit affects your rates:
8. Reduce Your Coverage (Carefully)
Consider adjusting:
9. Ask About All Discounts
Commonly missed discounts:
Timeline: When Will Rates Drop?
| Time Since Accident | Rate Impact |
|--------------------|-------------|
| Year 1 | Full increase |
| Year 2 | Full increase |
| Year 3 | Often begins declining |
| Year 4-5 | May return to normal |
| Year 6+ | Usually no impact |
Note: Serious accidents (DUI, injury) may impact rates longer.
What NOT to Do
The Bottom Line
One accident doesn't mean high rates forever. Shop around, take advantage of every discount, and prove you're a safe driver. In most cases, your rates will recover within 3-5 years—faster if you're proactive.