How an Accident Affects Your Car Insurance Rates

Your premium will likely increase after an accident, even if you were not at fault

An accident on your driving record usually raises your insurance premium. The increase depends on who caused the accident, how much damage occurred, and what your insurance company's pricing rules are. Most insurers charge more for at-fault accidents than for accidents where you were hit by someone else, but both can result in higher rates.

The timing matters too. Some insurers raise your rate immediately after you report the accident. Others wait until your policy renews. A few may not raise your rate at all if the accident was minor and you have been a customer for years, but this is uncommon. You will not know your exact new rate until your insurer calculates it or your policy comes up for renewal.

Key Takeaways

• At-fault accidents typically raise your premium more than accidents where another driver hit you, sometimes by 20 to 40 percent or more depending on your insurer.
• Your rate increase usually takes effect at your next policy renewal, though some insurers apply it sooner.
• The accident stays on your driving record for three to five years in South Carolina, and insurers can use it to set your rate during that entire period.
• Shopping for a new quote from a different insurer after an accident may reveal lower rates, since different companies weigh accidents differently.
• Accident forgiveness programs, available from some insurers, prevent your first accident from raising your rate if you meet certain conditions.

How insurers decide whether to raise your rate

Insurers use your driving record to calculate risk. An at-fault accident signals to them that you are more likely to cause another one, so they raise your premium to offset that risk. An accident where you were not at fault still appears on your record, but most insurers treat it differently—some do not raise your rate at all, while others raise it less than they would for an at-fault accident.

The severity of the accident matters. A minor fender-bender with low repair costs may result in a smaller rate increase than a serious collision. Some insurers also look at whether you filed a claim. If you paid for repairs out of pocket instead of using your insurance, the accident may not affect your rate, since the insurer did not have to pay anything.

Your history with the company plays a role too. A driver with five years of clean driving may see a smaller increase than a new customer, or may may have access to for accident forgiveness. Insurers reward loyalty and long claim-free records.

How much your premium will increase

There is no fixed percentage. An at-fault accident might raise your rate by 20 to 40 percent, but some insurers charge more and others less. A not-at-fault accident might raise it by 5 to 15 percent, or not at all. The only way to know your actual increase is to contact your insurer or wait for your renewal notice.

The type of accident also affects the amount. A collision (hitting another car or object) usually costs more to repair than a comprehensive claim (theft, weather, vandalism), so it may result in a larger rate hike. Multiple accidents or violations on your record compound the increase—your second accident in three years will raise your rate more than your first.

Location and vehicle type matter as well. Accidents in urban areas may be treated differently than those in rural areas. Expensive vehicles or high-performance cars may see larger increases because repairs cost more.

When the rate increase takes effect

Most insurers apply the rate increase at your next renewal date. If your policy renews in six months, you will pay your current rate for those six months, then the new higher rate starts. Some insurers, however, apply increases immediately or within 30 days of the accident, so check your policy documents or call your agent to find out your company's timeline.

If you are in the middle of a policy term when the accident happens, you cannot usually change your rate until renewal—you are locked in at your current premium. Once the renewal date arrives, the new rate applies. If you disagree with the increase, you can shop for quotes from other insurers before your renewal date and switch if you find a better rate.

How long an accident stays on your record

In South Carolina, an accident typically remains on your driving record for three to five years. During that time, any insurer you apply to can see it and use it to set your rate. After the accident drops off your record, it no longer affects your premiums with new insurers, though your current insurer may still use it if your policy renews before the accident fully ages off.

The exact timeline depends on the type of accident and whether it involved a citation. A minor accident with no ticket may fall off sooner than one where you received a traffic violation. Check your driving record through the South Carolina Department of Motor Vehicles to see what appears and when it will be removed.

Accident forgiveness and other ways to limit the increase

Accident forgiveness is a program some insurers offer that prevents your first accident from raising your rate. You usually have to meet conditions: no accidents or violations in the past three to five years, and sometimes you have to pay a small fee to add the coverage. Not all insurers offer it, and not all policies include it automatically, so ask your agent whether you have it.

If you do not have accident forgiveness, you can still reduce the impact by shopping around. Different insurers weigh accidents differently. One company might raise your rate 30 percent after an at-fault accident, while another raises it only 15 percent. Getting quotes from three to five insurers can reveal significant savings, sometimes enough to offset the increase entirely.

Bundling policies—combining auto, home, and other coverage with one insurer—sometimes qualifies you for discounts that soften the rate increase. Taking a defensive driving course may also lower your rate at some insurers, though this varies by company.

What happens if the other driver was at fault

If the other driver caused the accident and their insurance pays for your repairs, your rate may not increase at all. However, some insurers still raise your rate slightly because you were involved in an accident, even though you were not at fault. Others do not raise it. This depends entirely on your insurer's policy.

If the other driver was uninsured or underinsured, you would file a claim under your own uninsured or underinsured motorist coverage. This claim may raise your rate more than a not-at-fault accident would, because you are claiming against your own policy. Again, this varies by insurer.

Even if your rate does not increase, the accident still appears on your record and can affect your rate when you shop for insurance elsewhere. A new insurer may charge you more because of the accident, even though you were not at fault.

Frequently Asked Questions

Will my insurance go up if I was not at fault?

Most insurers do not raise your rate for a not-at-fault accident, but some do—usually by a smaller amount than they would for an at-fault accident. Check your policy or call your agent to find out your company's specific rule. The accident will still appear on your record and may affect rates if you switch insurers.

Can I switch insurance companies to avoid a rate increase?

Yes. You can shop for quotes from other insurers before your renewal date and switch if you find a better rate. Different companies price accidents differently, so you may find lower rates elsewhere. However, the accident will appear on your driving record, so all insurers will see it—some may simply charge less for it than your current company does.

How long does an accident affect my insurance rates?

An accident typically affects your rates for three to five years in South Carolina, depending on your insurer and the severity of the accident. After it drops off your driving record, new insurers cannot see it. Your current insurer may still use it if your policy renews before the accident fully ages off.

Does my deductible affect how much my rate goes up?

No. Your deductible is what you pay out of pocket when you file a claim. Your rate increase is based on the accident itself and your driving history, not on your deductible amount. However, if you paid for repairs without filing a claim, the accident would not affect your rate at all.

What is accident forgiveness and how do I get it?

Accident forgiveness is a program that prevents your first accident from raising your rate. You usually need a clean driving record for three to five years and may have to pay a fee. Not all insurers offer it, and it is not automatic on all policies. Ask your agent whether you have it or can add it.