What to do immediately, how much your rate will increase, and when not to file a claim.
Updated 2026 What to Do, What It Costs, and How Long It Lasts
Being in a car accident is stressful enough without worrying about what it will do to your insurance. Unfortunately, the financial consequences extend well beyond the immediate repair bills. An at-fault accident can raise your premium by nearly 50 percent on average and that increase can follow you for three to five years. This guide explains exactly what to do in the moments after an accident, how much rates typically increase by insurer, and when it might actually make financial sense not to file a claim at all.
Your first priority is safety. Check yourself, your passengers, and anyone in the other vehicle for injuries. Call 911 immediately if anyone is hurt.
Even for minor accidents, a police report creates an official record that is invaluable for insurance claims. In many states, you are required by law to report accidents above a certain damage threshold.
Get the other driver name, contact information, insurance company, policy number, license plate, and driver license number. Do not admit fault at the scene.
Take photos of all vehicles, damage, the scene, road conditions, and any visible injuries. These photos can be decisive in a disputed claim.
Report the accident to your insurance company as soon as possible, even if you are not at fault and even if you decide not to file a claim. Failure to report can jeopardize your coverage.
| Insurer | Avg Rate Increase | How Long It Lasts |
|---|---|---|
| GEICO | +42% | 3 years |
| State Farm | +38% | 3 years |
| Progressive | +52% | 3 years |
| Allstate | +58% | 3 to 5 years |
| Farmers | +48% | 3 years |
| USAA | +28% | 3 years |
| National Average | +49% | 3 years |
In most states, an at-fault accident stays on your insurance record for three years. In some states and with some insurers, it can affect your rates for up to five years. The surcharge typically decreases each year as the accident ages, rather than disappearing all at once on a specific anniversary date.
After three to five years, the accident should no longer appear as a rating factor, and your rates should return to clean-record levels assuming no new incidents in that time.
Accident forgiveness is a policy feature offered by many major insurers that prevents your first at-fault accident from raising your rate. It is typically available as an add-on for drivers with a clean record of three to five years, or it is granted automatically to long-standing policyholders.
Whether it is worth purchasing depends on the cost. If accident forgiveness adds $10 to $20/month to your premium, you are essentially paying $120 to $240 per year to insure against the rate increase from a single accident. On average, an at-fault accident raises rates by $820/year over three years, so forgiveness can pay for itself after the first incident if you hold the policy long enough.
Not every accident warrants a claim. If the damage is minor and the repair cost is close to your deductible, you may be better off paying out of pocket and protecting your claims-free discount. Here is a worked example:
Suppose you have a $750 deductible and the damage is $1,200. Filing the claim nets you $450 in repair coverage. But if the claim raises your annual premium by $820 for three years, you will pay $2,460 in additional premiums over that period to recover $450. Paying out of pocket is the clear financial winner in that scenario.
The calculus changes for larger claims. If damage is $8,000 and your deductible is $750, the claim pays $7,250. Even with a three-year surcharge of $820/year ($2,460 total), you come out $4,790 ahead by filing. Always do this math before deciding.