Car insurance is a must-have for anyone who owns a vehicle. The cost of your insurance premiums depends on a variety of factors, including age, driving history, credit, and marital status. Unfortunately, your insurance rates may increase if you’ve been involved in a car accident, but there are still many affordable options available if this happens to you. Read on to explore the best options for cheap car insurance after an accident.
Cheap Car Insurance After Accident
Even if you have a mark on your driving record, you can still get insurance from top-notch insurance companies. Browsing around and choosing the right insurance can save you a significant amount of money. According to ValuePenguin’s analysis, Progressive is the cheapest provider for drivers with an accident on their record. For these drivers choosing Progressive, the cheapest annual cost is $2,428 and the average annual cost is $3,526. These drivers are paying up to 40% less than average across major insurers.
Cheap Car Insurance After Other Violations
More than just accidents, there are some other violations that can increase your insurance premiums. Incidents like speeding tickets, traffic violations, and reckless driving, for some examples, may impact your rates. Progressive is the cheapest provider for drivers with a DUI. These drivers pay an average annual cost of $3,390 for insurance. GEICO is the cheapest provider for the following other infractions:
- Drivers with a speeding ticket pay an average annual cost of $2,748 with GEICO.
- Drivers who have run a stop sign pay an average annual cost of $2,758 with GEICO.
- Drivers who have conducted racing pay an average annual cost of $2,848 with GEICO.
- Drivers who have committed reckless driving pay an average annual cost of $2,848 with GEICO.
- Drivers who have committed careless driving pay an average annual cost of $2,933 with GEICO.
Keep in mind that these are average rates for comparison only. Your rates may vary based on your unique driving history and other factors. Getting quotes from multiple providers can help you find the lowest, best rates for your situation.
How an Accident or Other Violations May Affect Your Insurance Rates
Insurance companies assess a large amount of information when determining your insurance rates. Here are some key factors they consider:
- Age: Younger drivers are inexperienced and therefore more likely to get into accidents. Therefore, younger drivers may be responsible for paying higher insurance premiums.
- Marital status: Insurance companies often view married couples as more financially stable and less likely to file claims. For this reason, married drivers may pay less for insurance.
- Driving history: Drivers who have proven safe driving practices may pay less for insurance. Drivers who have proven infractions may pay more.
- Credit: Some insurance providers view drivers with low credit as more likely to file claims. That’s why drivers with poor credit may pay more for auto insurance.
When insurance companies believe you’re more at risk of getting into an accident, damaging your car, or making an insurance claim, they may charge you higher premiums. This is because they deem it more likely that they may have to pay a significant amount of money in a payout for damage or injuries to you, others, your vehicle, or the property of others due to a collision. In other words, if the company is more liable, it charges you more. You may be able to save money when it’s been at least three years, and your driving incidents are behind you.
According to insurance company standards, drivers who have been in accidents before are more likely to get into accidents in the future. Therefore, they usually pay higher insurance premiums. Typically, the more severe the accident or infraction, the greater the percentage increase in cost. For example, running a stop sign isn’t as serious of a matter as driving under the influence. Here are some statistics, based on data from ValuePenguin, that clarify how infractions may affect your insurance costs:
- Speeding is driving any speed over the posted speed limit. As this can cause accidents, especially in inclement weather, having a speeding ticket on your record may increase your insurance rates by 14%.
- Running a stop sign is against the law and can result in dangerous accidents. This infraction may increase your insurance rates by 14%.
- Racing may involve driving aggressively, weaving in and out of cars, and driving at dangerous speeds. This hazardous activity may increase your insurance rates by 18%.
- Reckless driving typically refers to driving at excessive speeds or engaging in other dangerous, unpredictable driving practices on the road. This violation may increase your insurance rates by 18%.
- Careless driving, similar to reckless driving, is driving with a wanton disregard for the safety of others. This may increase your insurance rates by 22%.
- DUIs, referring to driving under the influence of alcohol or drugs, are one of the most serious infractions you can incur. This extremely dangerous activity can increase your insurance rates by 41%.
How To Get Cheap Car Insurance After an Accident
If you’ve been involved in an accident, you may need to spend more time shopping around for car insurance before deciding on a policy. Some insurance companies may provide you with unaffordable quotes, and others may not even offer you coverage options if they deem you a high-risk driver.
Some drivers need SR-22 insurance, which is a special policy for people with poor driving records. This coverage requires the insurer to submit a certificate of financial responsibility proving you have the required amount of liability coverage. This is typically only applicable for drivers with extreme marks on their driving records or those who have had their licenses suspended before.
As you can see, even after an accident, many insurance carriers still provide cost-friendly coverage options. While the best way to decrease your insurance costs is to maintain a clean driving record, sometimes unexpected events happen. Consider talking to an insurance agent to discuss your unique situation, find discounts, and determine a policy that’s best for your budget. You can also browse the websites of different insurance carriers to explore what benefits each one offers.
At FIXD, our mission is to make car ownership as simple, easy, and affordable as possible. Our research team utilizes the latest automotive data and insights to create tools and resources that help drivers get peace of mind and save money over the life of their car.