How Much Does Insurance Go Up After An Accident?
*Please note: We cannot tell you if your car insurance will go up after an accident or if you will lose your license. Only your insurance company can advise you of any increases to your personal insurance policy and only your local authorities or state DMV can offer advice on your driver’s license.
How much will this driver’s insurance go up?
How much does insurance go up after an accident?
It depends. Largely on the nature of the accident and how your insurance company views it.
Sometimes your rates are unchanged. In another situation, your policy will be dropped from the company – a bad situation. Oftentimes, the answer is somewhere in between. That’s why it’s often hard to answer how much insurance goes up after an accident.
Before delving into specifics on whether post-accident insurance increases, you should understand one of the immutable laws of auto insurance:
Drivers with Incidents (Accidents/Tickets) Pay More
In general, people who have tickets pay more than people who don’t have tickets. In addition, people who make claims pay more as well. On the other hand, safe drivers with no tickets or accidents pay the lowest premiums.
That’s just how it works in Insurance Land.
How Insurance Companies Rate An Accident
So if you have an at-fault accident and there’s a large claim, the rule is you will pay more for your insurance premium. If the accident involves gross negligence (think DWI), your insurance policy could even be canceled. Ultimately, that means you will pay more for your insurance since you’ll need high risk insurance.
So how much more will you pay?
Assuming you don’t get canceled, you may get a surcharge on your policy. These surcharges can be 10% or more. They’re also stackable – meaning you can have more than one surcharge if you have more than one accident.
Surcharges are also different from company to company and usually last 3 years. If you get one, plan to pay an increased rate for awhile. Bottom line, if you have an at-fault accident with a big claim, your insurance will go up.
But there are exceptions to the rule of increased premiums after an accident.
Some companies overlook a minor accident. If the company pays out a small claim, (a few hundred dollars) rates may be unchanged. In addition, claims under the comprehensive (i.e. “other than collision”) portion of your insurance generally do not affect your rates either, regardless of how large or frequent they are. In other words, fixing the ding in your windshield should not affect your insurance premiums.
It’s also possible to have a bad accident and not have your insurance rates go up at all. The important factors are if you got a ticket and if your insurance company had to pay a claim. For instance, if you’re in an accident, are not found at fault and don’t make a collision claim, chances are your insurance company won’t even know it happened. In that case, your rates will be unchanged.
Your At-Fault Accidents Will (Probably) Be Discovered
If you’re concerned about increased premiums after an accident, you may be thinking about trying to hide the incident. Bear in mind, it’s hard to hide accidents – especially if you’re shopping for a new auto policy.
While writing new business auto insurance companies check your record against a shared database which includes your motor vehicle and auto insurance claim record. If the agent doesn’t do it, the underwriter at the main office will. Don’t be afraid to ask for a copy of this report as errors can and do occur.
In addition, your current company will sometimes run internal audits on existing customers. It’s best to be up front with your agent or broker so they know what’s going on.
Accidents Are Usually Forgotten – In Time
One nice thing about accidents they don’t stay on your record forever. For underwriting purposes, most companies disregard anything that happened more than five years ago, no matter how serious.
Some companies overlook accidents at the three-year mark. Rates can also go down at renewal on existing policies as accidents drop off in time. Keeping track of when your accidents drop off can save you money, especially if you’re currently in a high-risk company and can qualify to go back to lower standard company rates.
When Will Rates Increase After An Accident?
Another thing to consider is that an insurance company cannot change your rates mid-term for any reason. Any rate increase must come at your next renewal. Therefore several months may pass between an accident and any corresponding rate increase.
This can give you time to find a less expensive insurance company. However, that company will see your accident and rate you accordingly right away – they sometimes even change your rate later if you hid an incident during underwriting. Just be honest with the new company if you’re shopping because of a pending cancellation.
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Reviews (109)
Chris Adarna
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I’m 18 and only been driving for 7 months and I just got into my first accident it was my fault as I hit the person in front of me. The womans car I hit wasn’t hers as it was her mom’s and she was out of state. She barely got any damage but I have a busted up radiator, bumper and hood etc. I did not get a police report as the woman left before the cops came so I just filed a claim so the rates will go up? I’ve never had a ticket and I have a good gpa
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Michele Wilmonen
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With your age, more than likely you will see an increase in your premium.
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Kelly
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I was in an accident November 2013. It was my fault. I am now being told two years later that my policy is going up due to that accident. How is this possible?
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Michele Wilmonen
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More than likely your insurance company is just now finding it on your CLUE report or DMV record. These records are not pulled at every renewal. If they paid for it, I am not sure why it took this long.
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Anthony johnson
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Hello, I got into a minor fender bender leaving a gas station that I consider not my fault. I was making a right turn and a car side swipe my while waiting for traffic to pass so they can turn ahead of me. We didn’t call t he police. Just made claims to the insurance. I was later told I was at fault because I didn’t see the vehicle while making the turn even though they were the one to run into me. My insurance agent then later told me that I have a deductible that will be waived and i will not have to pay for repairs because we are both from the same insurance company, and was told I can bring my car to a shop for repairs at any time. I was then told liability will be discussed and he’ll keep in contact. What is expected to happen next?
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Michele Wilmonen
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You need to ask your insurance company this question. Each company has their own schedule o how things happen.
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Andrea
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Good morning!
I recently just changed insurance companies and I’ve had my license for over a year. I’ve never received any tickets. However, tonight I got my first one. I was cited for running a red light while I was trying to make a right hand turn. I didn’t come to a complete stop, but I did slow down to almost a complete stop. The cop pulled me over and ran a red light himself to pull me over. Since this is my first ticket, will my parents insurance and mine be affected? I’m a 21 year old female.
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Michele Wilmonen
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More than likely you will see a small increase in your premium since this is only your first ticket. The exact amount, if any, will show on the next renewal after they pull your DMV report again.
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L.O.
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Hi, I was in an accident today. This was my FIRST. I was coming out of my parking spot in a lot and ended up hitting another car who “came out of nowhere.” Luckily, I was only going a few miles per hour. My car is fine, however, some of the paint was taken off the other ladies car.
We did not call police, BUT, we did report to the insurance company. (We both have Geico.)
I am only 20 & I do have a few tickets on my record… last one happened a year & a half ago. (Just speeding tickets)
Any guess on how bad this will be? I hope this isn’t enough for me to be put on high risk. Any feedback is super helpful; thank you in advance.
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Michele Wilmonen
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It sounds like such a minor accident, but when you add it in with your speeding tickets it could increase your rates. As to the amount of any premium increase? Have no idea. Will just have to wait until the insurance company processes your renewal with the new information.
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Juan
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Hi, just got into a fender bender last night. I’m at fault (was changing songs on the radio). Rear ended the vehicle in front of me. The car I hit had a few minor scratches and the trunk has a small dent. My car has barely any visible damage besides a very small crack on the front grill. Unfortunately, my driver’s side airbag deployed. I would’ve covered those other damages out of pocket but an airbag replacement is too costly so I’m going go make a claim with my insurance (Geico). This was my 1st accident in the 10 years I’ve had my license and I’m hoping this does make my premium skyrocket when it’s time to renew. Any thoughts on whether I’ll have to pay an arm and a leg when renewal season comes back around?
thanks for your time
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Michele Wilmonen
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If its your first car accident in 10 years and there were no injuries, more than likely you are not going to see a huge increase in your premiums at renewal time.
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arturo ortiz
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Hi I hit some one today with my cousins new dodge dart no damgae was done I hit a lady rear ended her just a small hit like I said no damage but she got my info and said to expect a letter in the mail she left immidiately should I have to worry about a hit and run I do no have a liscense so she let me go but will my cousins insurance go up hea very mad and I feel bad about it
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Michele Wilmonen
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Really couldn’t say if it will go up or not. There are a number of different factors that go into rating an insurance policy and it will depend on how much the insurance companies pays out. Your cousin will have to wait until his policy renews to find out if it will go up.
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Paul
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Hi.My daughter was making a left out of a parking lot entering the median when a green car turned left at last minute into the plaza giving no turn signal cooliding into her. She was left with no ticket, and damage was minimal with a small dent and a few scraps to the other older car. This is her first accident, no previous tickets, and she is still a teen. It was reported to both police and USAA. Will this affect her rates? If so approximately how much?
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Michele Wilmonen
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With it being reported to the police and also USAA it depends on the actions from there. If it is on her motor vehicle report as a not-at-fault accident and there was no claimed paid by USAA, then no it would not affect her rates. However, if there is a claim paid out it will go into C.L.U.E. which is a claims database that insurance companies use when they create premiums for policies. So this scenario could affect her premiums.
As to how much…no one can really tell you that until the renewal with that accident on it has been processed by the computer.
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Shannon Kirchhoff
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I live in a home with my sister and two parents – Im on my own policy – my sister got DWI – now they want my insurance info – are all of our insurances going to go up because of her???
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Michele Wilmonen
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No, you shouldn’t have to worry about your insurance going up if your sister is not on your insurance policy. As much as it is none of their business, it would be a good idea to give their your insurance information so they don’t try to add you as a driver on her policy because you live in the same house.
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Ann R.
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My 17.5 year old son backed one of our cars into another of our cars in our driveway. The repair estimate for one car is almost $1200 and $1400 hundred for the other. We have AAA insurance.
Our son has no other accidents, tickets, etc.
I am unsure unsure whether to file a claim with the inurance provider; since he is a tenn male driver, I’m not sure if the deductable is per car or per accident, and am concerned that our premiums will go up if we make a claim. Any advice?
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Michele Wilmonen
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Actually I can’t advise you either way, this is something you have to decide based on the information you have. What I can tell you is the following:
1) Yes, more than likely your insurance premiums will be going up if you file a claim because of your teen son.
2) Normally the deductible is per accident, because rarely do you hit your own vehicle. For the insurance company I worked for they would waive the deductible completely if you hit your own car, but that is something you would need to talk to your insurance company about.
3)Because there was no police report filed, if you pay for it out of pocket your insurance company will not know and won’t be able to use it when they decide how much to charge you for your policy.
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Tommy
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Hey Todd, I have had my insurance and car for a month before I unfortunately got into an accident. I was in the middle of a big intersection waiting to make a left turn. When the light turned red and the cars have all stopped, I started my turn. It was then that a speeding jeep that ran a red light slammed my passenger side. We both spoke to our adjusters and i told them my story, which was he ran a red light, and I heard the other party is saying they had a green light. From what my adjuster is saying, without actual proof, chances are it will be 85% my fault and 15% their fault, This seems totally unfair because isin’t it the adjusters job to investigate the conflicting statements? And also because I was 22 when I first started my insurance and I was in a minor accident, am I looking at my insurance to sky rocket? Thanks.
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Michele Wilmonen
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Because of your age, yes it is most likely that your rates are going to go up because of this second accident.
Unfortunately, if the adjuster has nothing to go on other than one person’s word against another’s there is nothing they can investigate. With no police report or witnesses there is nothing much they can do.
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Keandra
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My daughter was driving my car ilegally (she does not have a licence) and caused a very minor fender bender. Can my insurance go up.
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Michele Wilmonen
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Yes it sure can.
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Gabby
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Hi, I just got my license and I’m 16. I am on my moms policy for USAA. I accidentally reversed into someone but the damage was minor. Will the insurance increase..?
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Michele Wilmonen
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More than likely. But, nothing is for certain until the insurance company processes the renewal with the new accident on it.
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Gina
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On Memorial Day I got into a small accident. The car infront of me basically made a u-turn to park, he didn’t measure the distance well, so he stopped. Mistakenly, I continued thinking that he was letting me go past him, while I was going past he was backing up. Thinking I was going to make it past, I ended up scraping the corner of his bumper with my car. He got the insurance info and my license info; there was no police report. I was too nervous, all I got was his name & his drivers license number. I am 18 and not on my parents insurance. If he reports this to Allstate (my parents’ insurer). What will be the end result? Will the rates go up?
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Michele Wilmonen
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As far as the accident we can’t really say who is going to be deemed at fault and how much it would raise the insurance premiums of your parents insurance if you are found at fault. However, your parent’s insurance company is going to put you on their policy and they are definitely going to see increased rates.
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Brian
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I recently backed into a short pole in parking lot and dented my back bumper, broke my tail light, and slightly bend my quarter panel. I’ve had 1 speeding ticket in the past 5 years and no accidents. Is my insurance likely to go up?
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Michele Wilmonen
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Hard to say if your premiums will go up. However, because you have already had a speeding ticket, this at-fault accident is going to be another hit against you as far as your insurance company seeing you as a safe driver.
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molly
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Hi I just got a reckless driving ticket and was wondering if I took a save driving class…would my insurance still go up??…
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Michele Wilmonen
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It really depends on the insurance company that you are with and how many other tickets and accidents you have. The best thing to do is to ask your insurance agent or insurance company to see if they even offer a discount for a safe driving course.
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Kaitlin
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Hello, I am 18 years old and am currently on my parent’s insurance. I was recently in a accident where I was at fault because I rear ended another woman’s car in bumper to bumper traffic. Her car wasn’t that damaged, but it still needed work. My car was slightly worse off but was still in good driving condition.
When I was 16 (almost 2 years ago) I hit a car in a parking lot, my insurance did not go up or if it did it went up a small amount.
My question is: Will my insurance go up? If so how much?
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Michele Wilmonen
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Unfortunately, your insurance is most likely going to go up. As far as the amount, no one will be able to tell you the exact amount of any increase until your renewal is processed.
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Kandle
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My mother was using our vehicle to pick up our kids from school and rear ended another driver. There car got the most damage as ours is a suburban. What can I expect from my insurance company?
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Michele Wilmonen
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Actually, unless you or the other person filed a claim with your insurance company you won’t hear from them at all. If a claim does get filed, expect to be contacted for a statement. They are also going to want to talk to your mother since she was the one that was driving.
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Lee
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My 18 year old daughter scratched the rear bumper of a parked Cadillac Escalade. The owner did not call the police but would like his bumper fixed. He took it to a shop and they estimated $750.00.
Question – I have USAA, 10 years, not 1 claim. Should I file a claim or not? I just wanted to piece of mind of having insurance review the damage, etc.
BTW…daughter is paying for damage, she’s bummed but i am sure she will be much more careful next time.
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Michele Wilmonen
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Sorry, we can’t advise you to file a claim or not. What we can say, however, is that you do pay for insurance coverage to take care of things like this so that you don’t have to. But, even a $750 claim can end up raising your premium down the line.
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Alex
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Hi I was recently in an accident inside of a parking lot. I was driving on the “main” road inside of the lot and another vehicle cam out of one of the aisles and the two vehicles collided. My insurance company, GEICO, said that I am being held 10% responsible and the other drive 90%. GEICO said they cannot tell me if my premiums will go up or not. I am waiting on a response from the other drivers provider. In your opinion, will they go up if I use my own company? Should I wait for a response from their provider?
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Michele Wilmonen
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Honestly, unless there is something super important that you just have to have your insurance company pay for, I would wait to hear from the other insurance company.
As for your other question, no one can tell you if your premiums will go up. That is all calculated by a rating program that takes a ton of information into account to create your personalized premium.
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Philip
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What’s the threshold for rate increase with Mercury for an at-fault claim? I heard $2800 is the magic number for the 20% increase?
I had two auto body quotes, one $3000 and one $2600. If the rate increase is tied in w/ the $2800 threshold then I’ll go with the $2600 shop.
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Michele Wilmonen
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Sorry, we don’t keep track of those types of numbers.
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Brandi
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I had a small accident about a week ago, where I was at fault. I rear ended a guy, and I was going about five miles an hour. We pulled over, everyone was fine, my car definitely got the worse end of the stick. The man I hit was very ‘nice’, stating that he would have his car looked at, but he didn’t think anything needed to be done. He even admitted mine got the worse end of the stick, as well. We exchanged information, I took a picture of the accident, my damages as well as his, and then we went on our way.
I called him later that day to see maybe what he had in mind for damages, just to see and check on how he was doing. He never answered, so I believed that he was going to drop it. This was incredibly stupid of me, and I can wholeheartedly admit that.
I get a text from him a week to the day, stating that the damages will be $2,500. I highly doubt in any way that the damages could even come close to that amount, considering there was no visible damage to his car. He hasn’t claimed the accident yet, which makes me think it’s even more of a sketchy situation.
Last, but not least, I looked at the picture I took of his insurance card, and it was expired. It expired almost a year ago to the day. I would understand if it was a few days expired, but it was almost a year ago. How would this affect the claim process? What do I tell my agent? That I rear ended some guy that just wants $2,500 for damages that aren’t even apparent, that is driving with an over a year old insurance card? I’m completely at fault, but I have no idea how he can claim this. I’m just so confused.
Thanks in advance for your help!
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Michele Wilmonen
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Send the guy a text back and tell him that you changed your mind and want your insurance company to pay for the damages instead. If he had legitimate damages then he will get your insurance information and file a claim with your insurance company. If the damages are not legit, he won’t file.
As far as I know, you don’t have to contact your insurance company. If he wants to file a claim, he can contact them and the company will contact you for a statement.
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Jed
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I Hit a car back bumper by accident while trying to pass them. It created a 3-4 inch crack on the bumper…mine turned out without a scratch. She called the police and they came, and got all our information.
This my first accident ever, Its my parents car but I’m insured under them I believe. I’m 20 and again, this is my first accident ever…will the insurance go up? I would hate for my parents to pay more money. If it does I will happily pay whatever how much it increased. Btw I have Allstate insurance
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brian berti
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hello Im 18 years old just involved in an accident it involved me pulling out into my designated lane but a car was coming down that same lane (the wrong lane the car should of been in) and we collided. They filed a minor accident report. will the insurance increase a lot ? will I lose my license ?
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carol
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Hi. I stopped at a neiborhood stop sign, checked both ways, slowly pulled out, and hit a car that came out of nowhere. His damage was rear passenger side fender. Mine was just the bumper. The passenger lied and claimed injury, which of course I can’t prove. I have full coverage. I don’t know how much I’ll pay at renewal yet. But with damage to the BMW, plus medical my insurance company said it comes to around $8000. I pay $97 a month, will it be double now?
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Michele Wilmonen
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More than likely your insurance will go up, but there is no real way of telling how much it will. In fact, even if you ask your insurance company they won’t be able to tell you until your renewal information is processed by their computer.
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Tess
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Hi, I’m 17 and I rear ended someone today. The cop at the scene said I probably have about $4000 of repairs but the other guys truck was fine. I also got a $230 ticket for hitting him. I’m going to take the defensive driving class to get the points off my record but what do you think will happen with my insurance?
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Michele Wilmonen
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Hi, Tess. Sorry to hear about your accident.
I think you are being very responsible by taking the defensive driving course, and it will help your insurance premiums by not having those points on your license. However, you are still most likely going to see somewhat of an increase in your premium if your insurance company pays for the repairs to your vehicle. Any increase though depends on how much they pay, if you have other incidents they have paid for, and how your insurance company rates your policy. So nothing is ever certain in this type of case until you actually have your renewal offer in hand.
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Tammy
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I was in a very minor fender bender where both our vehicles were backing out of parking spots directly behind each other. The result was very minor damage to the others vehicle (paint cracking on bumper). We exchanged information and I automatically contacted my insurance to report what had happened. They told me it was probably 50-50. Now a week later the other party still has not responded to the insurance company.
1. How long do they have to respond before my insurance will close the case?
2. What are the chances my insurance will go up if nothing is paid out? (Im in Ca )
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Michele Wilmonen
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Sorry to hear about your car accident.
1) You need to ask your insurance company how long they plan on keeping the claim open. There is a timeframe in which a claim has to be processed in the State of California, but I am not sure if that clock starts as soon as your file the claim or if it starts once they have all the information.
2) If nothing is paid out for your claim, it is unlikely that your insurance premium will go up. First, it was in a parking lot so more than likely there was no police report filed; meaning that there is no accident listed on our DMV record from this. Second, the accident will be placed on your CLUE report because you filed a claim from your insurance company, however it would be listed with a zero payout.
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Juan Franco
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Hi, good morning. This morning I got into a small fender bender. It was my fault, I hit a green Mini Cooper but it just got a little scratch probably like 2 inches long on the rear bumper. I’m guessing it shouldn’t be more than $1,000. I was driving my dad’s truck… Will this increase my policy? Since I have a seperate policy with a different company?
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Michele Wilmonen
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More than likely you will not see a price increase on your insurance policy with minimal damage like that, besides your dad’s policy is responsible for the damage. Your name will go on the CLUE report as the driver that caused the accident though, so your insurance company may eventually find out about it.
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cohen
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Hi if my friend that does not have his own inssurance got into at fault accident with my car . Do my inssurance will go up?
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Michele Wilmonen
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If your insurance company paid out for your friend’s claim, most likely you will see an increase in your insurance premium. However, each insurance company is different and there are a number of different factors that come into play as to whether or not you will see an increase, so there is no way to know until it is time for your renewal.
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Joan
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Hello,
I am a 24-year old woman who recently was in my first accident under my own insurance policy. Driving into my underground parking garage, the door was already open and I was distracted. I entered the garage as the garage door was closing and it closed onto the top of my car. I panicked and pressed the garage door opener, but the garage door didn’t move or go back up right away, and because of this, I kept driving for fear of it continuing to crush my vehicle. The entire roof of my car was scuffed and the antenna was damaged. Upon filing a claim, they wanted to check to see if it was the apartment complex that was liable, as the sensor didn’t respond to my car getting into the garage, and the industrial size garage door was “too heavy” to react as quickly as your typical home garage door. I ended up being liable and responsible for my $500 deductible, but the auto shop said it’d be $3000 to fix with parts/labor/etc. This was an at-fault accident, but no others were involved and no one was injured, and the garage door was not damaged, so my insurance company is only paying to fix the car. How much should I expect my insurance rates to go up after renewal in May?
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Michele Wilmonen
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Wow, sorry to hear about your accident. In the 15 years that I have worked with car insurance claims, that is the first time I have heard of one like this.
To answer your question though, there is really no way for me to tell you how much it will go up. In fact, I can’t even refer you to ask your insurance company because they are going to tell you the same thing. There are so many factors involved in deciding a person’s insurance premium and if it will raise after an accident, that the only way you will know the answer is after the rating software processes your renewal.
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Jaime
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I have been with USAA since 2001, and had no claims until just recently. I claimed on collision in early November and they paid 2500 or so on it. Just today I had another at fault fender bender (only damage to my car). I got an estimate and there is no way I can fix it out of pocket. What are the chances usaa does not renew me? I know my rate will go up, I’m more worried about non-renewal.
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Michele Wilmonen
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If you are racking up the accidents chances are that you will be facing a non-renewal from USAA soon. However, they do take more information into account than just the number of accidents you have had, so it is really difficult to say with any certainty that they are planning on dropping you. Unfortunately, even if you call and ask them the same question you will get the same answer I just gave.
When your renewal time comes up, your information will be processed by the underwriting program and it will decide if your policy will be non-renewed or not.
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!!!!
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Hi, so I am a 17 year old who just got in their first accident. It was a minor fender bender with just a scrape and a small dent. However, we are having trouble negotiating the amount to pay the other driver for his dent. He got two estimates, one was $800 and the other was almost $1500. He has my insurance card because I wasn’t sure how to go about my first accident. He is angry because my dad and him got into it about the amount we would agree to pay ( my dad ultimately asking him to get the lower estimate and him refusing). Is there any reasonable way to convince the other driver to avoid filing an insurance claim and getting him to settle for the lower estimate? And if not, do you know what will happen to my insurance? I was at- fault, at least what everyone is claiming. If we ask him to get a third estimate and its closer to the low end of the first two, would that convince him otherwise? Please help, everyone is angry at me.
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Michele Wilmonen
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Unfortunately, there is no way to convince the other driver to go with the lower estimate. If he ends up getting it fixed for the higher amount, you can always refuse and see if he ends up taking you to small claims court. If you present the case that he went with the higher amount instead of a more reasonable amount, you might get a ruling in your favor for the lower amount. Either way, I would request copies of both estimates from the person so you have them as evidence.
Ultimately, it may be best to report the claim to your insurance company. Then your insurance company can lay it out to him that they are only paying for the damages at a reasonable cost. Having your insurance company involved will also protect you from getting ripped off by this guy, as he will have to deal with the company and will no longer be in contact with you. If he does contact you and your family to try and bully you into paying the higher amount, then you can contact the police about harassment.
Because the amount of the damages are not much, I am not really sure what this is going to do to your car insurance.
I do have to say that I am impressed that you gave the other person your insurance information and you didn’t leave the scene of the accident. So many young drivers panic and don’t keep their wits about them when they get into an accident, but it sounds like you made very responsible decisions after it happened.
Everyone makes mistakes while driving and your parents won’t be mad at you forever, it will all get resolved.
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Lana
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With regards to having a policy canceled… I was in a collision a few weeks ago, where fault is still under investigation and not yet settled (I was not ticketed) but the claim for my totaled vehicle and all of that has been handled by my insurance company. Now just this morning I made the stupid mistake of backing out of the driveway and into a neighbors car parked car, causing a dent. Called the police to file a report and will assume they will file a claim to repair/replace the back left corner of their vehicle. I have no other infractions on my record and have been with this insurance company for 5yrs. I’m 34, my husband and I are on the policy with 2 cars. Do you think the close proximity of these two accidents — worse case scenario I’m technically at fault for the first one too (I was turning left on a yellow, oncoming car came flying into intersection at 70+ in a 45mph) — is grounds for them dropping my policy? Had a family member mention this possibility and now I’m concerned. If that were to occur, do I just shop for a new policy and likely pay more obviously? Thanks!
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Michele Wilmonen
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Sorry to hear about your misfortunes recently.
As far as your insurance company cancelling your policy, it really depends on the insurance company. Some companies will keep covering you, while others will drop you as soon as they can. If your insurance company does decide that they no longer want to insure you, they will not cancel your policy they will tell you at renewal that they will no longer cover you. You will be given plenty of notice if they are going to drop you, so you really don’t need to start shopping around until then.
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James
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Hello,
My 16 year old son was parking at church and contacted a parked minivan on the rear bumper. He has no prior accidents or tickets and did not receive a ticket for this accident. There is no damage to his vehicle. A police report was filed and the other driver has obtained an estimate to repair their minor damage. Unfortunately for my son, their minor damage requires replacing the entire bumper at a cost of $975.
My insurance company is aware of the accident. I have the option of paying the other driver directly or having my insurance pay for the repairs. Recognizing this will likely have an affect on my son’s insurance rates, which is the best option?
Thanks!
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Michele Wilmonen
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Wow, that is a tough decision.
On the one hand, paying for it yourself will keep it off your son’s CLUE report and save him (and you) future premium increases. On the other hand, this is exactly why you pay for car insurance. Also your car insurance company will be there to protect you in case the other person comes back and claims future damage as being related to this accident.
So, I can’t really give you a good answer to this question as you have to decide what is financially best for you.
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Melinda
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Hello,
I am trying to make an educated decision on whether or not it is worth making a claim and risking higher premiums. After talking with Geico, they could not give me any information about surcharges or increased premium amounts, or even a basic range of increase. I was wondering if you can give me an idea on what kind of percentage i can expect my premium to increase in my situation…
I backed out of a driveway that had a low rock jutting out of the side. It was not visible to me as it was so low and out of eyesight. it scraped and dented the frame of the car below the door on the driver’s side. No other cars were involved. Nobody was injured. But the estimate to fix it came in at $4045 because of the time involved in fixing this part of the car.
Geico told me any claim i make over $2000 WILL result in a surcharge but would not tell me anything about what that might look like. I have a spotless driving history. this is my first claim. it happened in upstate NY. I drive a white Jetta Sportwagon.
I am trying to decide if i should pay for it out of pocket to avoid an increase in my auto insurance premium. or, considering the benign circumstances, will that increase in my premium be so low that it would absolutely be worth filing the claim?
any insight would be HUGELY appreciated.
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Michele Wilmonen
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I actually got this question a lot when I worked in claims. There really is no way to tell how much a person’s insurance is going to go up, if it goes up at all, with a specific claim. There are so many factors involved with how much you are charged for insurance that it is impossible to even give a quote, that and all of the information is calculated by a computer now.
However, it sounds like GEICO is already promising that you will be seeing some sort of increase in the form of a surcharge. If you want to avoid this, then you should pay for the damage out of pocket. This particular situation will never be put on your DMV record and will never make it to your CLUE report if you pay for it, so you wouldn’t have to worry about it affecting your premium or making increases for future claims worse.
On the other hand, this is why you pay for insurance and GEICO should pay up. You could always file the claim and if GEICO jumps your premiums up, start looking for a new insurance company that can give you a better rate.
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Alison
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Hi! I was recently involved in an accident of which I was at fault. My car ended up with more damage than the other. My car is estimated to take 1,300 to fix and the other guy’s is estimated to take 1,000. Both are so pricey mainly for paint and labor. I’m 23 and I have never been in an accident before. I’ve never had a ticket before either. Right now I have a good driver discount. Should I expect my rate to skyrocket or only increase slightly? And will my good driver discount be discontinued on my renewal?
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Michele Wilmonen
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Thanks for the question. In this case I can almost promise that you will see a good increase in your insurance premiums here in the next year for three reasons:
1) You are under 25 and just had an at-fault accident
2) You are more than likely going to lose your good driver discount
3) Getting your first ticket will increase your insurance also (if you got a ticket)
I know this is probably not what you want to hear, but you just got hit with a triple whammy. The good news is that it may not increase your premiums this coming renewal, it may take until the next renewal for the increases to hit. And you can always shop around for better prices on insurance premiums once you get the renewal with the higher insurance rates.
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Emily
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Hi, I’m a 17 year old and just got a ticket for speeding, is it going to affect my insurance rates very much?
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Michele Wilmonen
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HI, Emily. More than likely yes, you will be facing a price hike once your insurance company pulls your DMV record and finds it on there. How high the price increase will be will depend on the insurance company and if you have had prior tickets or accidents already on your driving record.
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Accident_Premium_Rate
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Hi Changed from one insurance to another insurance. New insurance underwriter had approved my policy & all paper work was done and from Oct 1st 2013, it was going to be effective. But unfortunately on Sep 27th 2013, where i still with old insurance company, i met with an accident and it was my fault. My car was TOTAL & other person car expense was 8 K, which all claimed through my old insurance. And cop gave me a ticket for traffic infraction “following too close”
Now coming to my point. Right now, my new insurance doesn’t know about my accident. But, they will know during renewal. Meanwhile, i contacted the court & judge asked me to pay total of $300 for ticket fine & the court will dismiss the above-referenced infraction at the end of the deferral period.
I have three question:
1) What actually my deferral period? Whether it is period of 1 year with no new traffic infraction or criminal traffic violations or whether i am entitled to only one (1) deferred finding for a moving violation and one (1) deferred finding for a non-moving violation within a seven (7) year period
2) In 2010 i got a speeding ticket and i appealed to court & i requested for “mitigation hearing” & judge dismissed my ticket infraction without any fine fee. Added the case number is not available, if i search with my name in King County records.
3) Which is the cheapest option. Already paid $150 for the ticket and again, I have to pay for $150 for the court to dismiss the above-referenced infraction at the end of the deferral period. Or just leave it and during my insurance renewal, whether my insurance will not see it or not?
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Michele Wilmonen
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Hi, thanks for your question. Let’s jump right into the questions as you listed them.
1) You will have to check with you state authorities as to the deferral period they have.
2) I am not sure what the question is here. If the ticket was dismissed your insurance company should not use it against you to increase your rates.
3) Paying for the ticket and having it dismissed, or letting it stay and face an insurance premium increase is a very hard question for any driver to deal with. I can not direct you as to which way to go, but what I can say is that you never know what the future holds. If you have other situations in the future that do get added to your driving record and cannot be removed, you would be in a better place with fewer past citations. So whenever you are given the chance to have citations removed from your driving record take them.
Will paying to have it removed be cheaper than the insurance rate increase if you just allowed it to stay? Because each insurance company and policy is different, no one can really say until after it has already been charged to your policy.
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Houston
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Hey, thank you for posting this!
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Michele Wilmonen
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Glad it helped. Thanks for visiting.
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Howard
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My Brother was involved in a small accident that cracked a one piece tail light of a really old Buick from early 90s. I got a new car that i just added to the policy not knowing that the policy would go up so high. Our policy spiked by several hundreds of dollars. I called and they told me the accident came out to 18k. Most of it was for medical bills, im thinking fraud. Would it be best to start looking for another policy.
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Michele Wilmonen
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Yeah, that sounds like fraud to me also from my experience working in claims. You need to call the insurance company and find out whose medical bills they were and if they are already investigating this because of the minor damage. I have never seen a legitimate claim with that much in medical bills from something that only caused a cracked tail light.
If they can’t give you a legitimate reason as to the large amount or they are not investigating, I would call the state Insurance Commissioner or Department of Insurance to see if you have any recourse.
And yes, it may be time to start getting quotes from other insurance companies.
Michele
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Matt
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Hi, had an at fault accident in December 2009, and allstate added a surcharge at my next renewal (May 2010). Now that the accident has dropped (3 years), can I get Allstate to lower my rate prior to my renewal date, May 2013, or do I have to wait for the renewal?
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Michele Wilmonen
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Unfortunately, you have to wait for the renewal in most cases. But, it wouldn’t hurt to ask, the worst they can tell you is that you have to wait.
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Naveraju
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hi, I envolved in an accident, but it was not my fault. I have the police report showing that with me. It was happen 8 months ago. Now I change my insurence compnay, first I asked the quote. The rate was low, and I purchased that. Later they increase the premium and told that I had an accident in my driving history, eventhough it was not my mistake its a part of my history. They also told me that when I ask the quote, I answered that I do not have any accident, but they looked at my driving history and found it so my premium goes high. It is doing by geico and i had filed a claim to repair my car with geico at that time. Is it resonable ? I am confuse why that accident affect me since I did not have any fault.
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Michele Wilmonen
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Unfortunately, even if you are not at fault for an accident you have to claim it when you are getting quotes for other insurance companies. A not-at-fault accident should not affect your insurnace premium as drastically as an at-fault accident though. I would check with your insurance company to see if they have the accident listed as an “at-fault” or “not-at-fault”.
If they have it listed as “at-fault” provide them with the police report showing so and contact the claims department at GEICO to demand that they change the accident listing on your CLUE report. The CLUE report is most likely where you new insurance company found the accident in the first place.
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Nathan S
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Hello, I am 19 and accidentally backs into a buddy of mines car in a small parking lot. It’s only about a 4″ wide dent and a small crack in the paint. Would you recommend getting it fixed out of pocket or by insurance? It doesn’t seem to be that bad of damage.
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Michele Wilmonen
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That would be something that you and your friend need to come to an agreement on. I never recommend that you pay for it on your own, just in case something goes wrong or there is underlying damage that you can’t see.
You can always have your friend get an estimate for how much the damage is, and if you can afford to pay for it then do so. Just get something in writing, that both of your sign, that you are agreeing to pay for the damages that are on the estimate. If you can’t afford it, file a claim with your insurance company.
But, again, that is a decision that is up to you,
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Darin
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hi i have a question. the other day i was backing up my truck from my driveway and slightly hit my dads car on the side. it wasnt a big hit. plus the car is old and in bad condition anyways. he instead on making a police report and file an isurance claim. Do you think my insurance will go up? and will my insurance give my dad money to fix the car or will they fix it themselves? thank you
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Michele Wilmonen
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Your car insurance might go up. It all depends on your past accident and driving history, as well as how much is paid out for the claim. It is almost impossible to speculate what an insurance policy will do after an accident.
The insurance company could go either way with the repair compensation. For example, the bad car accident I was in three years ago left my car undriveable and sitting in a body shop. The other person’s car insurance paid the shop directly for the repairs.
On the other hand, my husband’s truck was rear ended by another driver and their insurance company just gave my husband a check based off the estimate from the repair shop.
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Robert
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I’ve never been in an accident and have never received a ticket. About 3 weeks ago I lightly bumped into a car in front of me in a parking lot with my truck. The license plate on my truck was flush against the car in front of me and when I backed my truck out there were four small (centimeter long) scratches left on the chrome grille of the car in front. The guy was willing to handle it without having to go through our insurance companies. At first he estimated it was like $300 to replace the grille but now he’s saying it’s more like $600. What should I do? Should I go through my insurance (USAA)? How much will my rate go up? –Thank you in advance.
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Michele Wilmonen
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I never like to tell people to handle their claims outside if their insurance company. Because if you do, you lose all of the legal protection you have from scumbags that will take advantage of you. But I honestly can’t tell you how much your insurance will go up, either.
If you choose to handle the issue without the insurance company, have the other person provide you with an estimate from the body shop that will fix the repairs. Make sure that the repairs are ONLY for the damage that you did and nothing else. If you can pay the body shop directly and keep that receipt.
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Buu
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i got into an accident where i ran the red light. the estimate to fix the other car is $900. the guy said if i don’t want to, he won’t report it to the insurance. he’ll work something out where i’ll only have to pay him $700. though i’m wondering will my insurance go up for this incident? should i just go ahead n report it to them? or should i just go with the deal? i got allstate, and i’m a teen driver (female). got license like a few months ago. i also got a citation for running the red light.
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Michele Wilmonen
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I don’t like it when another party wants to settle without getting the insurance companies involved. If you do decide to do this, have them sign a paper that says the $700 satisfies the damages caused to their vehicle.
I know you don’t want to see your insurance premiums go up, but you will be better protected by having the claim filed with the insurance company. My main concern is that they will try to take advantage of you because you are so young and that they will keep coming back for more money, saying that the damage is not all paid for.
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John
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I recently got in a parking lot fender bender and both cars bumpers got destroyed I’m 17 how much would my premium go up? Just want a estimate
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Michele Wilmonen
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I’m sorry to hear about your accident, John. I wish I could help, but I wouldn’t be able to tell you even closely what your insurance premium is going to go up to.
Insurance rates are based on so many different factors, that the very same accident can have two completely different outcomes for each driver involved.
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Christa
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Hello
So my fiend hit my car pretty bad and the cost to fix it would be around 2,000. And I am currently driving a rental under their ins. They have gieco and responsibility has been accepted on their end. They are a 25yr old male.
They had an accident about 9 months ago that didn’t cause their ins to go up because the damages were under 2,000. I said I’d help them with the difference In their premium because I feel bad. What can I expect the increase to be or around what percentage?
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Michele Wilmonen
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Sorry to tell you, but I have no idea. Increases in insurance rates from accidents vary depending on company, the driver, the details on the policy, their underwriting department, and what they have filed with the Department of Insurance or Insurance Commissioner in your state.
I can tell you that any increases that he sees from the accident are going to follow him for a long time. So, you may have committed yourself to a longterm agreement o paying the different for him.
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Al Stotes
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Here is a very unique situation: My brother was driving to work when a man darted into traffic on foot and rolled up the hood and shattered the windshield. My brother proceeded to make sure the man was alright, which he was but in a dazed state, then placed him in the front passenger seat and began driving to the hospital. The man came to in minutes and severely objected being brought to the hospital. It turned out he was a fugitive and was hit by my brother while trying to evade the cops. My brother then told him he needed medical attention which then the man tried holding him up and went for a weapon. There was a scuffle and the man was ejected from the vehicle (my brother is quite built). The man disappeared and a police report was filed. Damage: broken windshield and dented hood. Comprehensive covers the windshield yet I am reluctant to go in as I can imagine our rates will climb as my brother is only 20. Any comments?
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Michele Wilmonen
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Yep, definately have comments.
This is a not at-fault accident and your brother has the police report to back it up. If you file a claim with the insurance company it is unlikely that you will see an increase in your insurance premium. Also, comprehensive claims, don’t have near as much impact on insurance premiums as collision claims do. However, with the damage to the hood as well, the whole claim may be put under collision coverage.
Talk to your agent and tell him the situation. See what he or she advises.
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T
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My daughter(17) backed into a friends mailbox. It left a dent and scratched off the paint down to the metal. I’m not sure what the repair cost will be as this just happened last night. My ins agent said it would cause our insurance to go up 25%($310 per yr for three yrs) then I complained since we have had ins with them for several yrs and then he responded by saying that It wouldn’t actually go up $930 for 3 years as I stated that as your daughter gets older her rates are going to go down so the effect of the surcharge would be diminished. Yes, an at-fault claim for a young driver can have a big effect on insurance. It wouldn’t be even close to that amount had you had the same accident.
I did fail to mention that if the claim is under $1000, we don’t surcharge.
You may lose some discounts but it wouldn’t go up $310/yr if it was under$1000 ”
What does this mean? Should we file the claim or not? I’m thinking damages will be approx 500-800 but I’m no expert so I really dont know. We have a deductible of $500 but have a $250 deductible credit for no claims….What do I do? Thanks,
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Michele Wilmonen
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Hi, T. Thanks for the question. As I am not a licensed agent in our area and don’t work for your insurance company, the advice I am about to give you is an opinion only, and should not be taken as legal advice.
There are a couple points here:
1) This is the first time I have seen an agent ever give out specific rate increase numbers for what will happen if you file a claim. The confusion that he issued out after he told you the 25%, is just proof that no one really knows how much your insurance will go up if you file a claim for an at-fault accident.
2) It sounds like the claim is going to cost you less than what your rate increase would be if you reported it. I would get quotes on the damage to give you a better idea of what you will be dealing with.
3) If you report this claim, you will lose that earned benefit of having your deductible waived. This seems like too small of a claim to cash that in on.
So, get the quotes to see what you are dealing with, and then I would weigh the pro’s and con’s of filing a claim versus not filing a claim. Wish I could give you a more definative answer.
Michele
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HOLLI
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I have a question for you. In December 2011 my son was almost 17 had a fender bender on the freeway. The girl he hit was pregnant. She said she was not hurt but EMS took her to the hospital due to the fact of the pregnancy. He go ta ticket for failure to control speed. It happened during rush hour morning bumper to bumper traffic. He took care of the ticket and took defensive driving. Then we were notified by our insurance company the girl he hit and Steve Lee “The Hammer” were suing us. Our insurance co. Settled out of court for 100,000. I am sick about it. One week later to the day the insurance company settled this law suit he ran into a Mercedes in the parking lot at his job. The front door and mirror on the passanger side were damaged. What advise can you give me. I told the driver my son would pay for his car to be repaired and that we would not be filing on the insurance. PLEASE HELP
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Michele Wilmonen
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Hi Holli,
If you are going to pay for the other driver’s damages out of pocket, you need to have him take it to a repair shop to get an estimate and make sure that you have the receipts for paying for the repairs and have him sign a document that you paid for the repairs, so that he can’t come back at you for more money.
If you do report it to your insurance company, you are going to see a huge increase in your premium. We are talking about a 17-year-old male that has had two accident in less than a year and one of them was a major lawsuit.
What you do is up to you, but having your son pay for the damages is a good idea. Otherwise, he is not going to change his driving habits.
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Wendy
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Hi I just recently got picked up for speeding driving 35 in a 25 and on the next day I got into a fender bender no damage on my vehicle but a lot on his. I was wondering how much my insurence will go up I have a good driving record and I’ve had a license for over 30 years
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Michele Wilmonen
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Best thing to do is to talk to your insurance company. But, until your renewal is processed with that new information no one will know for certain as to how much your insurance will go up.
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