--- url: "https://cheapvhr.com/blog/how-car-accident-history-affects-insurance-rates" title: "How Car Accident History Affects Insurance Rates" --- [Back to Blog](https://cheapvhr.com/blog) ![How Car Accident History Affects Insurance Rates](https://i.postimg.cc/GpdGgGM0/car-accidents-rates-insurance.png) **Category**: Cheap Carfax # How Car Accident History Affects Insurance Rates **Written By**: CheapVHR Team **Published on**: Tue Dec 16 2025 0 min min read Nobody likes to be a part of a car accident, but they can happen anytime and to anyone. While they are quite stressful, it’s normal for people to think about what comes next, especially in terms of car insurance. After all, the last thing you wish is for one unfortunate incident to cause a long-term financial crisis. And when an accident happens, questions like how much insurance will increase and for how long always pop up in a person’s mind. So today, we’ll cover all about how car accident history affects insurance rates. Let’s begin! ## Car Accidents’ Impact On Your Insurance Whenever an accident occurs, insurance companies find out whose fault it was. This plays a significant role in determining whether your insurance rates will change and by how much. And if it’s your fault, you will possibly face increases in insurance rates. However, if you were not at fault, it won’t affect your rates, but it will still be recorded in your history. Your insurance provider will also review statements and verify claim details for further confirmation. Remember that most insurers consider an at-fault accident to be a “big violation,” so they will raise your premium according to that. However, the exact amount relies on the severity of the property[ damage](https://cheapvhr.com/blog/moderate-damage-on-carfax) or whether anyone was injured. ## Factors That Go Into Determining Post-Accident Insurance Premiums Different factors contribute to determining specific post-accident insurance premiums. Let’s have a look at each of them: - [ ] At-Fault Accidents & Your Premiums If you were at fault for the accident, your premiums will most likely rise. It’s because you will be held responsible for it, and your insurer will have to pay out claims from other passengers or drivers. Consequently, they will recoup those costs by increasing the rates. In some scenarios, your premium may escalate by hundreds of dollars a year, depending on the accident’s severity. - [ ] The Type of Accident That Occurred Another crucial factor that impacts accidental insurance premiums is the kind of accident that happened. For instance, if there were no damage to property or no injuries aside from car damage (such as hitting the car), then insurers may see this as less risky compared to the type of accidents where there was extensive property damage (like hitting another vehicle) or bodily injuries. This type of accident leads to smaller rate increases than serious accidents. - [ ] The Extent of Coverage You Currently Have Your coverage impacts how much your insurance premiums increase right after the accident. If you have deductibles and comprehensive coverage and other types of coverage, like rental reimbursement coverage or motorist protection, any rate increase will be less than if you have only basic liability coverage. Thorough coverage can protect you in case of vandalism and severe weather events and will also keep the costs low if there is additional damage beyond the accident itself. ## How Do I Know If I Have Accident Forgiveness? Well, you may be eligible for “Accident Forgiveness” if you or other occasional or secondary drivers of your car have a very clean driving record (such as no at-fault accidents). Remember that the rules and qualifications may differ depending on your circumstances. And if you are unsure about your eligibility, all you need to do is contact your current insurer for more details. Or else, if you have an existing insurance policy with some insurance company, you can review your accident forgiveness eligibility on their site. ## Strategies to Minimize Premium Increases After Your Accident The good news is that there are still ways you can opt for to save on car insurance, even if you have higher premiums after the claim. Here’s what to do: - [ ] Raise Your Deductible: Higher car insurance deductibles generally lead to lower premiums. - [ ] Bundle Your Policies: Combine the auto insurance and home insurance with one insurer to save on your specific insurance rates. - [ ] Maintain a Clear Record: Don’t make small claims, and also avoid getting future tickets. - [ ] Install a Dash Cam: If you get clear footage, it can support your case in finding the fault. ## How Long Accidents Affect Insurance Rates: Typical Timeline The table below will show you how insurers weigh an at-fault car crash over time. Your state rules or carrier can shift the dates moderately, but the pattern is still the same for most drivers. | Time After the Accident | Effect on Insurance Costs | Helpful Tip |--------|--------|--------| | First 12 months | Premiums usually spike the most, often rising by 20%–40% | Shop around for better rates and consider increasing your deductible | | 1 to 3 years | The rate increases slowly and lessens at each policy renewal | Keep a clean driving record and look into usage-based savings programs | | 3 to 5 years | Many accident-related surcharges are removed completely | Ask your insurer to reassess your driving or vehicle record | ## How CheapVHR Helps After an Accident When you’re dealing with sudden insurance changes after an unfortunate accident, having the right details can really make a difference. That’s where CheapVHR comes in! It helps drivers understand that accident records, VIN checks, [recalls](https://cheapvhr.com/blog/what-does-recall-mean-on-a-car-), vehicle history, functional damage, and other factors can impact insurance rates. So instead of depending on guesswork, make sure you get thorough insights that support wiser decisions before selling, buying, or insuring a vehicle. So if you’re trying to avoid higher premiums and looking for a practical solution to stay updated, CheapVHR is your answer. ## Tags Accidental damage ## Related Articles - [Affordable Carfax Reports: Instant VIN Checks & Trusted Vehicle History for Less](https://cheapvhr.com/blog/affordable-carfax-reports-instant-vin) - [Does Hail Damage Show Up on CARFAX?](https://cheapvhr.com/blog/hail-damage-carfax) - [How to Interpret the Details in a Carfax Report for Used Car Buying?](https://cheapvhr.com/blog/how-to-interpret-the-details-in-a-carfax-report-for-used-car-buying) - [Carfax Trade-In Value: What's the Worth of Your Car?](https://cheapvhr.com/blog/carfax-trade-in-value) - [What Does Recall Mean on a Car? ](https://cheapvhr.com/blog/what-does-recall-mean-on-a-car-) reCAPTCHA Recaptcha requires verification. 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