If you’ve been involved in a car accident in Littleton, Colorado, you may wonder how the crash will affect your auto insurance rates. While there’s no universal number, your insurance premiums will likely increase after an accident that you caused.
The exact amount depends on several factors, including your driving history, the severity of the accident, your insurer’s policies, and the state where you live.
Average Rate Increases After an Accident
Industry data suggests that car insurance premiums can rise anywhere from 20% to 50% after an at-fault accident, with the national average hovering around $800 more per year. However, your personal increase could be higher or lower.
For example, a minor accident with low repair costs will not trigger the same increase as a major accident with significant property damage or injuries.
In most cases, multiple at-fault accidents or serious violations (like DUI) will cause the most significant increases, and your coverage could even be dropped.
Increases typically remain in place for three to five years, depending on your insurer and state laws.
Factors That Affect How Much Your Rates Go Up
Not all accidents have the same impact on your premiums. Insurers typically consider multiple factors before deciding how much to raise your rates. If you’re deemed at fault, your rates will almost certainly rise. In some states, even partial fault can affect premiums. However, if you were not at fault, many insurers will not increase your rates—though this is not guaranteed.
Other factors include;
- The severity of the accident.
- Your driving record
- Your insurance company’s policies
- State regulations restricting how much rates can increase
How Much Will My Insurance Increase After an Accident?
Accident Forgiveness and How It Works
Many insurers offer accident forgiveness programs that prevent your rates from going up after your first at-fault accident. These programs may be included in your policy or available for an extra premium.
Typically, accident forgiveness applies only to drivers with a clean record for a set number of years. It may not apply to severe accidents involving DUI, reckless driving, or excessive speeding.
If you have accident forgiveness, it can save you hundreds or even thousands in the years following a crash.
How to Minimize The Increase to Your Insurance
While you can’t undo a crash, you can take steps to minimize the financial impact on your insurance premiums.
Specifically, you can:
- Ask about accident forgiveness – This policy can eliminate the rate hike.
- Increase your deductible – A higher deductible can lower your monthly premium.
- Shop around for quotes – Switching providers could save you money.
- Take a defensive driving course – Some insurers offer discounts for completing approved safety courses.
You can also consider bundling your insurance policies. Combining your auto insurance with homeowners or renters coverage may offset some of the increase.
Will My Rates Ever Go Back Down?
Insurance rate increases after an accident are not permanent. In most cases, the surcharge will drop off after three to five years as long as you maintain a clean driving record. Some insurers also review policies annually and may lower your rates sooner if your risk profile improves.
While the best way to avoid a rate hike is to drive safely and avoid collisions, accidents happen. Understanding your coverage and exploring options to minimize increases to your premiums multiple insurers can help you manage the financial impact of a crash.