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How Much Does Insurance Go Up After an Accident?
Clean Driving Record? Not at Fault? Your Car Insurance Premiums Can Still Rise—Here’s Why
Car accidents are stressful and can leave lasting consequences. Beyond vehicle damage or personal injury, an accident can also impact your auto insurance rates significantly. Car insurance rates often increase after an accident, as insurance providers see accident involvement as an indicator of higher risk, which translates into higher premiums.
Accidents and Insurance Hikes—What to Expect
Minor accidents can result in smaller increases of about 20-30%, while major accidents can increase your premium by 50%, or even more. However, the exact amount of your premium increase depends on many factors, such as the accident severity, your driving records, past claims, and your insurance coverage. Whether you were at fault or not in an accident can also influence your rate increase. An increase in insurance premiums after an accident can last for three to five years, again depending on several factors.
At Mizzoni’s, we work with most major insurance companies throughout Lodi and surrounding areas in New Jersey, so we have in-depth insights and expertise. We strive to repair all vehicles back to factory conditions, which often involves negotiating with insurance providers on behalf of our customers. In this blog, we’ll explore how car insurance premiums are affected after an accident, what factors influence a rate hike, and how you can reduce the impact. We’ll also provide some expert insights that could empower you to make an informed decision.
Factors That Determine Insurance Rate Increases After an Accident
In New Jersey, insurance companies evaluate a wide range of details to determine how much car insurance increases after a crash.
Severity of the Accident
The more severe the accident, the greater the potential rate hike. For example, dent repair claims for a minor accident in a parking lot may result in a smaller increase of about 20-30%, while a serious accident causing major damage to your car frame or physical injury will likely cause a significant spike of 50% or more.
Your Driving History
A clean driving history can help minimize the increase in insurance rates. However, if you have past speeding tickets, violations, or prior accidents, your insurer may consider you a higher-risk driver and increase your rates more substantially.
Past Claims and Payout
The higher the car insurance claim payout, the more your premium may rise. Insurers also review your history to check for multiple claims in the past. Frequent claims, even for small incidents like body paint or windshield repairs can signal higher risk and increase the rate significantly.
Type of Coverage
Your car insurance policy affects how much your premium may increase. Drivers with basic liability insurance would see smaller increases than those with comprehensive coverage. An accident forgiveness coverage can protect you from a rate hike after the first incident if it is included in your plan.
Been in a Car Accident? Get Expert Collision Repair Today
Accidents happen, but getting your vehicle back to pre-accident condition shouldn’t be a hassle. At Mizzoni’s Auto Body, our ASE and I-Car Gold certified technicians specialize in precision collision repair, from minor dents to major frame damage. Trust us to restore your car with care, quality, and attention to detail.
How At-Fault vs. Not-At-Fault Accidents Affect Insurance Rates
New Jersey has a no-fault insurance system, which means your insurer typically pays your medical expenses regardless of who caused the accident. However, fault still plays a role in whether your insurance premiums increase and by how much.
At-Fault Accidents
If you’re found to be at fault, your insurer may classify you as a high-risk driver. This often results in a significant premium increase, especially if you’re held responsible for bodily injury or property damage.
No-Fault Accidents
Even if you were not at fault in an accident, your rates can still rise. Insurers may consider any accident an indicator of increased risk for future claims, though the increase is usually smaller than for at-fault accidents.
Need Roadside Assistance After an Accident?
Apart from a wide range of collision repair services, we also offer 24-Hour towing services to all our customers. If your car is stuck in a ditch, suffered frame damage, or has a shattered windshield, our tow specialists are just a phone call away.
Average Car Insurance Rate Increase After an Accident in New Jersey
According to MarketWatch, in 2025, drivers in New Jersey with a clean driving record typically pay an average annual premium of $2,513. However, that average jumps to $4,127 annually after just one single accident. That’s a potential average increase of over $1,600.
Rates can also vary based on the provider. Some car insurance companies offer post-accident rates for as low as $1,714 a year in New Jersey, so check your options thoroughly. If your insurance rate is affected after an accident, your current provider will notify you about 30 days before your policy renewal date with your updated coverage options and premium amounts.
How Long Will the Rate Increase Last?
Typically, an insurance increase due to accidents stays between three and five years. The duration depends on your insurance company’s policies and the accident’s severity. Maintaining an accident-free record can help reduce your car insurance premiums over time.
Can I Switch Insurers After an Accident?
Yes, you can switch insurance providers after an accident. But be honest about your accidents and insurance claims history when requesting new quotes. Most insurance adjusters will review your driving record before finalizing your rate.
Insider Insurance Insights from Mizzoni’s
We’ve seen firsthand how even minor accidents can lead to major surprises on your insurance bill. With years of experience navigating claims and rate adjustments, we’re here to share what your provider won’t always tell you. Our goal is to help you stay informed, prepared, and protected.
Practical Tips to Mitigate Rate Increases
Rate hikes after an accident are often unavoidable. But thankfully, there are ways to reduce their impact in the long run.
Compare Quotes
As we said before, not all insurers treat accidents the same. Use online tools and contact insurance agents to compare rates and find a provider with better post-accident offers.
Take a Defensive Driving Course
New Jersey offers a state-approved Driver Improvement Program. Completing one can remove points from your driving record and may qualify you for an insurance discount.
Increase Your Deductible
Raising your deductible lowers your premium. A higher deductible means more out-of-pocket costs after a claim, but reduced overall insurance expenses for the year.
Go for an Insurance Bundle
You can bundle your auto insurance with other policies, such as homeowner’s or renter’s insurance, with the same insurance agent to get additional discounts.
Just Had an Accident? Let Us Handle the Insurance Hassles, and the Repairs
From fender benders to major collisions, we restore your vehicle with care and deal directly with your insurance provider to make the process stress-free. Our team of experts manages the insurance claim, coordinates approvals, and ensures your repairs meet the highest standards. No runaround, or delays, just quality repairs and peace of mind.