How to Get the Best Car Insurance Rates After an Accident (2025 Guide)

Introduction

Getting into a car accident can be a stressful experience, and the financial impact can be even more overwhelming. One of the biggest concerns for drivers after an accident is the increase in car insurance rates. However, even after an accident, there are ways to secure the best possible car insurance rates. This guide will walk you through effective strategies to minimize your premiums and find the most affordable insurance coverage in 2025.

How Accidents Affect Car Insurance Rates

Insurance companies determine premiums based on risk assessment, and an accident signals a higher risk to insurers. Here’s how an accident can impact your insurance:

• Rate Increases: Premiums can increase by 20% to 50% or more depending on fault, severity, and insurance provider.
• Loss of Discounts: Safe driver discounts or accident-free discounts may be revoked.
• SR-22 Requirement: In some states, drivers deemed high-risk may need to file an SR-22, increasing costs further.
• Policy Non-Renewal: In severe cases, insurers might not renew your policy, requiring you to find new coverage.

Steps to Get the Best Insurance Rates After an Accident

1. Check Your Insurance Policy for Accident Forgiveness

Many insurance companies offer accident forgiveness programs, which prevent your first accident from impacting your premium. If you already have this feature in your policy, you may not see an increase.

2. Shop Around for Better Rates

Every insurer evaluates risk differently. Get quotes from multiple providers to compare rates and find the most affordable option. Some companies specialize in covering high-risk drivers at competitive rates. Websites like Insurify, The Zebra, and Policygenius can help you compare multiple insurers at once.

3. Increase Your Deductible

Opting for a higher deductible (the amount you pay before insurance kicks in) can lower your monthly premium. However, make sure you can afford the deductible in case of another claim.

4. Improve Your Credit Score

In many states, insurers use credit scores to determine premiums. A higher credit score typically results in lower insurance costs. Paying down debts, making timely bill payments, and keeping credit utilization low can help boost your score and reduce your premium.

5. Take a Defensive Driving Course

Some insurers offer discounts if you complete an approved defensive driving course. These programs demonstrate your commitment to safe driving, reducing your perceived risk. Defensive driving courses can typically save you 5% to 10% on your premiums.

6. Look for Discounts and Bundling Options

Check if you qualify for discounts such as:

• Multi-policy discounts (home + auto insurance)
• Low-mileage discounts (for those who drive less than the average mileage per year)
• Good student discounts (for young drivers with a GPA above a certain threshold)
• Military or professional organization discounts
• Loyalty discounts (some insurers reward long-term customers with rate reductions)

7. Opt for Usage-Based Insurance (UBI)

Usage-based insurance programs, such as Progressive’s Snapshot, Allstate’s Drivewise, and State Farm’s Drive Safe & Save, track your driving habits. Safe driving can lead to significant discounts over time.

8. Avoid Filing Small Claims

If the damage from an accident is minor and repairable without insurance, consider covering the costs yourself. Filing fewer claims keeps your record clean and prevents rate hikes.

9. Consider a Different Car

The type of car you drive affects your insurance rates. Switching to a car with better safety ratings and lower repair costs can help reduce your premiums. Insurance rates are typically lower for cars with advanced safety features, anti-theft devices, and lower accident rates.

10. Wait for the Accident to Drop Off Your Record

Most accidents stay on your insurance record for three to five years. Over time, as you maintain a clean driving history, your rates will gradually decrease.

Additional Strategies to Lower Car Insurance Costs

Install Telematics Devices

Many insurance companies offer telematics programs where they track your driving habits, such as speed, braking, and mileage. Safe drivers can receive discounts of up to 30% with programs like:

• Progressive’s Snapshot
• Allstate’s Drivewise
• State Farm’s Drive Safe & Save

Ask About Accident Forgiveness

Some insurers allow policyholders to add accident forgiveness to their policies, even after an accident, for an extra fee. This can prevent future accidents from further raising premiums.

Reduce Unnecessary Coverage

If you drive an older vehicle, you might not need comprehensive and collision coverage. Dropping these coverages can lower your premium significantly.

Join a Group Insurance Plan

Some employers, professional associations, and alumni organizations offer group insurance discounts that can help lower your rates.

Best Car Insurance Companies for Drivers with an Accident in 2025

1. GEICO – Offers accident forgiveness and competitive rates for high-risk drivers.
2. State Farm – Good for bundling policies and offers accident forgiveness.
3. Progressive – Provides usage-based discounts for safe driving.
4. Allstate – Features accident forgiveness and discounts for safe driving habits.
5. Nationwide – Offers vanishing deductible and accident forgiveness programs.
6. USAA – Best option for military members and their families, offering generous discounts.
7. Liberty Mutual – Provides accident forgiveness and customized coverage options.
8. Farmers Insurance – Offers a wide range of discounts, including signal-based tracking discounts.
9. Travelers Insurance – Features competitive rates and telematics-based discounts.
10. Metromile – Best for low-mileage drivers who can benefit from pay-per-mile insurance.

Frequently Asked Questions (FAQs)

How long will my insurance rates stay high after an accident?

Most accidents affect your rates for three to five years, depending on your state and insurance provider.

Can I get car insurance after multiple accidents?

Yes, but your options may be limited, and you may need to look for high-risk insurance providers like Dairyland, The General, or non-standard insurers.

What is the best insurance company for accident forgiveness?

GEICO, Allstate, State Farm, and Nationwide offer accident forgiveness programs, but availability may depend on your driving history and location.

Will my rates go up if the accident wasn’t my fault?

In most cases, not-at-fault accidents have a lesser impact on your premiums, but this depends on the state and insurer policies.

Conclusion

While an accident can raise your car insurance rates, you can still take proactive steps to find affordable coverage. By shopping around, taking advantage of discounts, and maintaining good driving habits, you can keep your premiums as low as possible. Always compare multiple insurers and explore all available options to secure the best rates in 2025.

With the right strategies, you can recover financially from an accident while keeping your car insurance affordable. Stay informed, be proactive, and drive safely to minimize future costs.