How Much Does Car Insurance Increase After an Accident?

Unfortunately, car insurance rates increase for almost all American drivers after an accident. Even those not at fault can expect their car insurance premium to rise after a crash.​

On average, car insurance premiums go up 49%, or $348 per year, after an accident. There may be exceptions based on factors such as your state, insurance provider, extent of damage, fault determination, and accident history.

Some insurance companies also offer accident forgiveness, which means a driver does not see their premium increase after their first at-fault accident — but this benefit varies by insurer and may require a clean driving record or an additional cost.

How Much Do Insurance Premiums Increase After an Accident in North Carolina?

In North Carolina, the average car insurance rate increase following an accident is $287, or roughly 60%, per year. Drivers typically see the increase reflected at renewal following the accident. After the surcharge takes effect, rates generally begin to decline after about three years if no additional accidents or violations occur, eventually returning to normal.

How Hit-and-Run Claims Can Impact Your Insurance Rates

Being the victim of a hit-and-run can feel unfair, and unfortunately, it may still affect your insurance rates even though you were not at fault. Many insurers consider any claim activity, including hit-and-run incidents, when evaluating your overall risk.

Your premium may increase depending on:

• Whether you’ve filed other claims recently
• Your driving history
• Your insurer’s underwriting rules
• North Carolina rating factors

If the damage is filed under uninsured motorist coverage, some insurers treat it more favorably than collision claims. Still, it’s possible to see a modest increase simply because a claim was filed.

Key point: A hit-and-run claim can raise your rates, but usually less than an at-fault accident would.

Do Comprehensive Claims Lead to Premium Increases?

Comprehensive claims, such as hail damage, hitting a deer, or theft, are generally viewed differently from at-fault collision claims. Because these events are typically outside your control, many insurers do not raise premiums solely due to a comprehensive claim.

However:​

• Multiple claims in a short period may still result in higher rates.
• You might lose your claims-free discount, which would indirectly increase your premium.
• Some insurers surcharge all claim activity, even if it’s not your fault.

So, a single hail or deer claim rarely causes a significant rate jump, but repeated claims or lost discounts can still raise your premium.

Understanding Accident Forgiveness and Whether You Qualify

Some insurers offer accident forgiveness, which protects you from a rate increase after your first at-fault accident.

You may qualify if:

• You have a clean driving record for several years
• You’ve been a loyal customer
• You pay extra to add accident forgiveness to your policy

Limitations to know:

• It often applies only once every 3–5 years
• It’s not available from every insurer
• It’s not included in every policy by default

For many drivers, accident forgiveness can significantly soften the financial impact of a first-time mistake, but it’s essential to read the fine print.

Can Switching Insurance Companies Help You Avoid Higher Rates?

After an accident, switching insurance companies can sometimes reduce the financial hit, especially if your insurer applies steep surcharges or if you lose loyalty discounts that aren’t replaceable.

However:

• The accident will still appear on your record, and insurers will see it.
• Some carriers penalize accidents more heavily than others.
• You may lose valuable bundling, multi-vehicle, or long-term customer discounts.

Despite this, many drivers still save money by shopping around after an accident, especially if their insurer is known for aggressive rate hikes.

How To Decide Whether to Pay for Repairs Out of Pocket or File an Insurance Claim

For minor accidents or repairs close to your deductible, paying out of pocket can prevent a rate increase that would cost more over the next several years.

Paying out of pocket may make sense when:

• Damage is minor
• Repair costs are at or slightly above your deductible
• You want to preserve a claims-free discount
• You want to avoid surcharge points

Before making a decision, it’s also a good idea to get estimates from a few reputable repair shops. This helps you understand the true extent of the damage and the full cost of repairs, which can make it easier to decide whether paying out of pocket is financially the better option.

In most cases, filing a claim is safer when the damage is significant, involves another driver, or when you’re unsure of the full extent of the repairs.

How To Lower Car Insurance Rates After an Accident

There are several ways to reduce your car insurance premium after an accident:

1. Maintain a Clean Driving Record – At-fault accidents usually only stay on your insurance record for 3–5 years. Avoiding new violations can help your premiums return to normal faster.
2. Ask About Accident Forgiveness – If your insurer offers accident forgiveness, you might avoid a surcharge for one at-fault crash, usually if you’ve been accident-free for several years.
3. Take a Defensive Driving Course – Some insurers offer small discounts for completing a certified defensive driving class.
4. Shop Around for Better Rates – If your carrier doesn’t offer discounts or accident forgiveness, consider switching.

In many cases, insurers like GEICO, AAA, and Grange may offer lower post-accident premiums than others.

Car Accident Attorneys That Take On Insurance Companies

Knowing what to do after a car accident can be overwhelming. In these critical times, it is essential to seek professional help to increase your chances of recovery. At Henson Fuerst, we have represented car accident victims and their families for over 45 years. Our knowledge and experience make all the difference in helping you recover the compensation you need after a serious crash.

If you’re facing substantial injuries and damages following an accident in North Carolina, contact the car accident attorneys at Henson Fuerst today by filling out our online form or calling (919) 781-1107.