5 States Where Car Insurance Rates Rise Most After an Accident

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Also find out where rates rise the least after a claim is filed -- and why you need to compare quotes regularly.

Getting into a car accident is becoming more expensive.

Auto insurance premiums increase by an average of 44.1 percent — or $371 per year — after a single claim of $2,000 or more is filed, according to InsuranceQuotes.com. That number reflects a 6 percent increase over the past three years.

Premiums increase by an average of 99.4 percent after a second claim is filed in one year. That reflects a 13 percent increase since 2014.

InsuranceQuotes.com has examined how filing various claims affects insurance costs each year since 2014. Senior insurance analyst Laura Adams says of the latest study, released this week:

“The rate increases drivers pay after filing a claim keep getting bigger, and this trend is likely to continue. It underscores just how important it is for consumers to shop and compare rates on a regular basis.”

If you haven’t compared rates recently, check out our insurance search tool. It will help you shop around for car, motorcycle or home insurance quotes based on your state.

As we have explained in the past, investing a little time into comparing insurance rates can pay dividends:

“If you save just $50 per month on your insurance payments and invest the money with only a 5% return, after 30 years you’ll have saved $40,000! That’s the magic of compound interest, and why saving even a small amount of money for a long period of time can make a huge difference”

For more tips, check out “9 Ways to Drive Down Your Auto Insurance Rates.”

How much premiums increase after a claim varies widely based on the state, according to InsuranceQuotes.com. The states with the highest increases after the filing of any type of claim are:

  1. California: 63.1 percent average premium increase after filing one claim of $2,000 or more
  2. New Hampshire: 60.3 percent
  3. Texas: 59.9 percent
  4. Massachusetts: 57.3 percent
  5. North Carolina: 57.3 percent

The states with the smallest increases are:

  1. Maryland: 21.5 percent
  2. Michigan: 26.1 percent
  3. Oklahoma: 27.9 percent
  4. Montana: 30.2 percent
  5. Kentucky: 30.6 percent

Mike Barry, a spokesperson for the nonprofit Insurance Information Institute, tells InsuranceQuotes.com that premium hikes vary by state primarily due to different states having different insurance regulations.

For example, California limits the factors — such as driver credit scores — that insurance companies can use to determine rates, according to InsuranceQuotes.com’s study. Insurers in California must base premiums primarily on a someone’s driving safety record, average miles driven per year and years of driving experience.

“When that’s all you can go on to set rates, drivers who cause an accident are going to get hit particularly hard,” Barry explains.

In Maryland, insurance companies can use various nondriving-related factors — including gender, age, marital status, occupation and credit score.

What has your experience been after filing an accident claim? Let us know about it below or on Facebook.

Stacy Johnson

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