After an accident

Fault is the main variable

An at-fault accident generally affects your rate at renewal. A not-at-fault accident often doesn't, and several states restrict or prohibit surcharging for accidents where you weren't at fault.

How long any surcharge lasts varies by insurer and state rather than following one rule. Ask your insurer directly how long a specific accident stays in their rating.

Accident forgiveness

Many insurers offer accident forgiveness, either earned through claim-free years or bought as an add-on, which waives the surcharge for a first at-fault accident.

It's worth asking whether you have it before deciding whether to claim, and worth asking about when you buy — it's cheap relative to what it prevents and easy to overlook.

Whether to claim at all

For minor damage close to your deductible, the recovery may be small enough that a claim on your record costs more over time than paying directly.

Get an estimate first. Also ask your insurer how reporting an incident differs from filing a claim — the distinction is real and how each is recorded varies.

Where anyone was injured, or another party is involved, report it. The calculation above applies to minor damage to your own vehicle, not to situations where a liability claim could follow.

What happens to your policy

• A surcharge applied at renewal, if at fault
• Loss of a claim-free or safe driver discount
• In serious or repeated cases, non-renewal — which is different from cancellation and needs immediate action
• No change at all, where forgiveness applies or you weren't at fault

What to do at renewal

• Shop the market — insurers weight accidents very differently, and the spread widens after one
• Ask what discounts you now qualify for, including defensive driving where available
• Check whether the accident is recorded correctly, including fault
• Reconsider your deductible, since a higher one lowers the premium
• Don't let coverage lapse while shopping — a gap costs more than the surcharge