5 States Where Car Insurance Rates Rise Most After an Accident

Photo by Monkey Business Images / Shutterstock.com

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.

How to find cheaper car insurance in minutes

Getting a better deal on car insurance doesn't have to be hard. You can have The Zebra, an insurance comparison site compare quotes in just a few minutes and find you the best rates. Consumers save an average of $368 per year, according to the site, so if you're ready to secure your new rate, get started now.

Read Next
10 U.S. Jobs That Are Disappearing Fastest
10 U.S. Jobs That Are Disappearing Fastest

Think twice before pursuing these shrinking occupations.

Top 5 Activities That People Dream of Doing in Retirement
Top 5 Activities That People Dream of Doing in Retirement

No. 1 isn’t visiting grandkids, and No. 4 might surprise you.

3 Cable TV Companies Hiking Prices for 2020
3 Cable TV Companies Hiking Prices for 2020

Still married to your cable company? Hold on to your wallet!

26 Things Everyone Should Keep in Their Car
26 Things Everyone Should Keep in Their Car

These tools and conveniences help protect drivers from hassles and calamities on the road.

19 Purchases That Buyers Almost Always Regret
19 Purchases That Buyers Almost Always Regret

Think twice before buying these things.

View this page without ads

Help us produce more money-saving articles and videos by subscribing to a membership.

Get Started

Most Popular
Will I Get My Ex-Husband’s Social Security When He Dies?
Will I Get My Ex-Husband’s Social Security When He Dies?

Two factors determine how much money is coming to you.

7 Ways to Boost Your Credit Score Fast
7 Ways to Boost Your Credit Score Fast

Your financial security might soon depend upon the strength of your credit score.

21 Things You Should Always Buy at a Dollar Store
21 Things You Should Always Buy at a Dollar Store

Dollar stores have great bargains on these familiar purchases. Yes, even pregnancy tests.

13 Brilliant Bulk-Buy Items on Amazon
13 Brilliant Bulk-Buy Items on Amazon

Every household should have these products on hand. Buying them in bulk on Amazon saves you cash.

6 Reasons I Will Never Trust Suze Orman
6 Reasons I Will Never Trust Suze Orman

Beware: The self-proclaimed personal finance expert has a track record that suggests more sizzle than steak.

This Type of Social Security Benefit Is Often Overlooked
This Type of Social Security Benefit Is Often Overlooked

The Social Security Administration is not helping certain people get money to which they are entitled, a report says.

Getting These 2 Shots Could Reduce Your Risk of Dementia
Getting These 2 Shots Could Reduce Your Risk of Dementia

These vaccines may lower the risk of Alzheimer’s disease by up to 40%.

9 Everyday Problems You Can Solve With Vaseline
9 Everyday Problems You Can Solve With Vaseline

Forget expensive specialty products. Good ol’ petroleum jelly can address many common annoyances.

8 Deep Discounts Available on Amazon This Friday
8 Deep Discounts Available on Amazon This Friday

These items are all steeply discounted — but the deals won’t last long.

16 Amazon Purchases That We Are Loving Right Now
16 Amazon Purchases That We Are Loving Right Now

These practical products make everyday life a little easier.

19 High-Paying Jobs You Can Get With a 2-Year Degree
19 High-Paying Jobs You Can Get With a 2-Year Degree

These jobs pay more than the typical job in the U.S. — and no bachelor’s degree is required.

7 Tips for Building an Emergency Stockpile
7 Tips for Building an Emergency Stockpile

A pandemic or natural disaster could leave you reliant on your existing food supply. Is your pantry prepared?

Homeowners Say These 2 Kitchen Appliance Brands Are Best
Homeowners Say These 2 Kitchen Appliance Brands Are Best

One brand takes five of the top honors, while another ranks highest in three categories.

41 Things You Should Never Buy
41 Things You Should Never Buy

Some purchases are just plain dumb. Give yourself — and your budget — a break. Don’t spend money on this stuff.

Is a Second Stimulus Check Still Coming?
Is a Second Stimulus Check Still Coming?

The status of another round of direct payments to taxpayers is a mix of good and bad news.

9 Indestructible Products That Are Worth the Price
9 Indestructible Products That Are Worth the Price

If you’re willing to pay a little more for these products, you may never have to shop for another again.

5 Ways to Get Amazon Prime for Free
5 Ways to Get Amazon Prime for Free

Hesitant to drop $119 a year on an Amazon Prime membership? Here’s how to get it for free.

8 Ways to Slash Your Internet Bill
8 Ways to Slash Your Internet Bill

No matter what price you are paying for internet service, taking these simple steps can lower it.

7 Ways to Shop at Costco Without a Membership
7 Ways to Shop at Costco Without a Membership

You don’t necessarily need to join to get in on the warehouse store’s savings.

View More Articles

View this page without ads

Help us produce more money-saving articles and videos by subscribing to a membership.

Get Started

Add a Comment

Our Policy: We welcome relevant and respectful comments in order to foster healthy and informative discussions. All other comments may be removed. Comments with links are automatically held for moderation.