What Happens With Car Insurance After an Accident?

After a car accident, you will file a claim so the responsible insurer can cover the resulting costs. Your rates may then adjust depending on which driver is found at fault.

Whether you’re shopping for car insurance with an accident on your record or wondering how a claim will affect your premium, here’s what you need to know.

Your car insurance rates are affected by accidents, especially at-fault violations.

Here’s a look at the average annual and monthly premiums for driving records with an at-fault and not-at-fault accident:

After a car accident, insurance adjusters investigate the loss and determine who is at fault.

Typically, one driver is deemed at fault and has an at-fault accident placed on their record. The other driver will have a not-at-fault accident on their record. 

In some cases, the adjusters may determine that both parties have some percentage of fault. For example, Driver #1 is assigned 80% fault, and Driver #2 is assigned 20% fault. In this situation, both drivers would have an at-fault accident on their records. 

An at-fault accident will typically raise your car insurance rates, whether you're 100% or 10% at fault, because insurers view you as a higher risk. The exact impact depends on your insurer, your state, and whether you carry accident forgiveness.

Insurers typically look back three to five years when reviewing your record for accidents and violations. After this period, those past incidents no longer affect your premium calculations.

Depending on your insurer’s specific underwriting guidelines, your rate will likely steadily decrease as tickets and violations age past the three- or five-year mark. Carriers reward sustained safe driving with lower premiums because a clean record signals a significantly lower risk of future claims.

You can switch to a different insurance company at any time, even if you have an at-fault accident on your record. You can also switch while a claim is open.

An accident or violation is a common reason to start shopping for new insurance. More than one in four drivers shopping for new car insurance reports at least one violation on their record, and those who shop after one to two years of coverage have the highest violation rate.¹

Here’s a step-by-step plan for switching your car insurance if you have an accident on your record:

1. Get quotes online or work with an agent or broker.

2. Make sure the quotes offer the same or better coverage than you currently have. 

3. Include all driving and claims activity, including traffic violations and comprehensive claims such as glass claims and hitting an animal. 

4. Apply for the policy and pay the premium. 

5. Cancel your prior policy only after the new policy has completed underwriting and the rate has been finalized.  

With Luva, you can compare quotes from multiple carriers side by side, so you can find solid coverage even with a less-than-perfect driving record.

Some companies may offer more favorable rates for drivers with violations on their records than others. The best car insurance will depend on the severity of the accident and how recently it occurred. 

To give you a better idea, we gathered the cheapest car insurance rates for drivers with an at-fault accident on their record:

While it can be harder to find the right insurance company when you have an accident on your record, you can compare rates from multiple insurers with Luva to find which ones offer the best coverage with your history.

Every insurance company offers different features and discounts. By exploring all your options, you can get the best coverage for the best rate. 

The following tips will help you identify the best car insurance policy for your needs:

• Compare multiple quotes

• Take a defensive driving course

• Get quotes with higher deductibles

• Sign up for accident forgiveness

You can also look for companies that use a shorter, three-year look-back period for accidents. Even if your at-fault accident falls within the three-year window, it will no longer affect your rates after the third year. 

Car insurance is your safety net if you ever get into an accident. While an accident may raise your insurance rates, you’ll have the option of staying with your current company or insuring with a different company.