How Much Does Car Insurance Increase After An Accident – Auto insurance companies portray themselves as friendly and forgiving in TV ads, but they’re less friendly than you might think. After filing just one claim, auto insurance premiums increase an average of 41.81%, according to an annual study by insuranceQuotes and Quadrant Information Services. How much insurance premiums are increased depends on the state where you live. See how your home state compares to others in the chart below.
To create our graphic, each state was given its own graph, with additional lines for DC and the national average. The first point represents the average annual premium for each state, the second point represents the average annual premium after one claim, and the space between these two points shows the average increase after one claim. We also colored each line to show the significance of the increase relative to the dollar amount drivers pay in each state. The data we used came from insuranceQuotes and the National Association of Insurance Commissioners (NAIC). To generate their averages, insuranceQuotes looked at the impact of a single new claim of $2,000 or more on a married, 45-year-old woman with a job, excellent credit, no lapses in coverage and no previous auto insurance claims.
How Much Does Car Insurance Increase After An Accident
New Hampshire is in a league of its own. Although the state’s average annual premium of $733 is below the national average of $841, it more than makes up for it with a 65.9% increase after filing a single claim, the highest percentage increase in the nation. After the rate hike, premiums in New Hampshire average $1,216.
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For total premium costs, however, Rhode Island has New Hampshire beat. After just one claim, America’s smallest state has the seventh highest average premium at $1,066 thanks to the third highest rate increase of 61.7%. That means Rhode Island drivers will pay an extra $657 a year in auto insurance after a single claim, the highest dollar-for-dollar increase in the country.
A look at our chart reveals an interesting pattern—all of the biggest premium increases are occurring in states that start with higher premiums, even with no claims filed. In most states where premiums start below the national average, their average increase is also lower. Unfortunately for drivers in states like Texas (53% post-claim increase) and Connecticut (43.8%), their premiums start high and only get worse. Other places, however, start so low that even though they have a big jump after claims, their premium is still not bad compared to some of their neighbors. In Iowa, for example, our hypothetical driver starts with a premium of $572. After a claim, her rate is up a whopping 56.5%, but she’s still only paying $895 each year.
The pattern seen with Iowa is particularly illustrated by four other states. Even after making one claim, satisfied residents of Wyoming ($826), South Dakota ($834), Indiana ($797) and Idaho ($734) still pay premiums below the national average per claim of $841.
Car insurance rates vary across the country as do premium increases after filing a single claim. But in some states, like Iowa, filing a single auto claim won’t raise your insurance premiums too much because of the state’s low average insurance costs. No one wants to get into an accident and file a claim, but when you’re in one of the more expensive states, be sure to drive extra carefully!
How Much Will My Car Insurance Increase After An Accident?
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