Your accident history plays a major role in how much you pay for car insurance in the USA. Whether it’s a minor fender bender or a serious collision, insurance companies use your driving record to assess risk — and that directly affects your premiums. In this 2025 guide, we explain how accidents influence your rates and how to reduce the impact.
Why Do Insurers Care About Accident History?
Insurance companies are in the business of managing risk. A driver with a clean record is seen as low risk, while someone with multiple accidents is considered more likely to file future claims. This perceived risk translates into higher premiums.
Types of Accidents and Their Impact on Your Insurance
1. At-Fault Accidents
If you caused the accident, your insurance rate could increase significantly—often 20% to 50% for the first offense.
2. Not-At-Fault Accidents
Some companies may still raise rates slightly depending on your state, insurer policies, and claim amounts.
3. Minor vs. Major Accidents
- Minor accident: Small increase (e.g., under $1,000 in damage)
- Major accident: Substantial rate hike, especially if injuries or property damage occurred
How Long Do Accidents Stay on Your Record?
In most states:
- Accidents stay on your driving record for 3 to 5 years
- Insurance companies may consider them for up to 7 years when setting your premiums
How Much Can Your Rates Increase?
| Accident Type | Average Rate Increase |
|---|---|
| First At-Fault Crash | 35% |
| Second Crash | 50%–75% |
| DUI or Reckless Driving | 80%+ |
Rates may vary by state and insurer.
Can You Get Cheap Insurance After an Accident?
Yes — here’s how:
✅ Shop Around
Different insurers treat accident history differently. Compare quotes to find one more forgiving.
✅ Take a Defensive Driving Course
Some insurers offer discounts if you complete a certified course after an accident.
✅ Ask for Accident Forgiveness
Companies like GEICO, Progressive, and Allstate may offer accident forgiveness if you qualify.
✅ Improve Other Factors
Boost your credit score, reduce mileage, and bundle policies to offset higher premiums.
Best Car Insurance Companies for Drivers with Accident History (2025)
| Company | Best Feature |
|---|---|
| Progressive | Snapshot program for safe habits |
| GEICO | Affordable rates post-accident |
| State Farm | Strong accident forgiveness |
| The General | Accepts high-risk drivers |
| Liberty Mutual | Customizable coverage |
Final Thoughts
Your accident history has a real impact on your car insurance quotes in the USA, but it doesn’t mean you’re stuck with high premiums forever. With the right steps—like comparing rates, improving your driving habits, and applying for discounts—you can reduce the damage to your wallet and get back on the road with confidence in 2025.