How to Lower Your Car Insurance After an Accident
Hope is not lost for cheap car insurance premiums after an accident! But you’ll need to implement these strategies.
Written by Drew Waterstreet
Reviewed by Jessa Claeys
A
rate increase after a car accident
feels like you’re being kicked while you’re down. Fortunately, you can implement plenty of strategies to counter a premium increase that stems from an auto accident.From customizing your policy to taking advantage of special offers from your provider, here are the best ways to bring your car insurance rate back down to earth after a car accident.
Ask your insurance company about accident forgiveness
Accident forgiveness
is an optional coverage that gets you one free pass per insurance policy (not per driver). Your first accident will still appear on your driving record, but your premium won’t be surcharged.Unfortunately, you can’t buy forgiveness for an accident that has already happened—we apologize if this advice is a little too late. Insurance providers that offer accident forgiveness generally require a clean driving record that stretches back three to five years. So this is more of a proactive solution.
Review your insurance coverage
If you’re involved in an accident, you will be thankful that you (hopefully) purchased
collision coverage
and comprehensive coverage
. These optional coverages will reimburse you for repairs to your vehicle associated with your insurance claim.While these
types of insurance
protect you from pricey out-of-pocket repair costs, they are quite expensive to maintain on your policy. It may be risky to drop them from your protection plan, but it will lower your monthly insurance bill significantly.However, make sure you still have enough coverage to meet your
state's minimum car insurance requirements
! It is illegal to drive uninsured (or underinsured) almost everywhere.If you're looking for a less risky way to lower your insurance costs, consider bundling your auto and
homeowners insurance
with the same provider. Typically, you’ll earn a discount on both by doing so.RECOMMENDED
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Increase your deductible
Your
car insurance deductible
is the amount you, the policyholder, will have to pay out of pocket for repairs after a claimable car accident before your insurance starts contributing.Insurance policies with higher deductibles are typically cheaper. However, by increasing your deductible, you may end up paying for minor claimable repairs entirely out of pocket. That’s exactly why insurance providers are willing to offer you a more affordable premium.
Inquire about car insurance discounts
You may not be on your car insurance company’s good side after filing a claim, but that doesn’t mean you won’t qualify for
car insurance discounts
. Here are some examples of discounts that you should ask your insurance agent about:- Low-mileage: Drive less per year to earn an auto insurance discount.
- Good student: Earning a GPA of 3.0 or better is usually rewarded with savings.
- New car: Newer cars typically have state-of-the-art safety features that help prevent accidents—and therefore claims.
- Defensive driving course: Regain trust from your provider after an accident by completing an approved defensive driving course.
- Bundling: Combine your auto and home insurance for a reduced total cost.
- Accident-free: Earn a safe-driver discount if you avoid incidents and don’t file claims.
Improve your credit score
Drivers with worse
credit scores
tend to have more expensive auto insurance rates. Studies show that risky financial decisions can also translate to a higher likelihood of making a risky decision on the road, inherently increasing the possibility of being involved in a car accident.We’re not here to say whether that’s a fair assumption or not. We’re just here to help you boost your credit score and avoid this problem altogether. Here are a few ways to do just that:
- Don’t miss payments
- Catch up on past-due bills and accounts
- Get credit for rent and utility payments
- Limit new credit accounts
- Use a secured credit card
Sign up for telematics
Don’t believe this one car accident fairly reflects your safe driving history? Prove it by using your provider’s telematics program. Here are a few you may have heard of before:
If you're unfamiliar, telematics uses an in-car monitoring device to track your daily driving habits. As a result, your provider can use the data collected to customize an appropriate rate for your auto insurance policy to match your risk profile.
And if you are the safe driver that you claim to be, this should work in your favor!
Shop around for lower car insurance rates
Shopping for a new policy is one of the fastest ways to lower car insurance costs. And when you use innovative quote comparison tools available online for free, you can compare offers from several auto insurance companies in a matter of seconds. Because even if one provider jacks up your rates after a car accident, it doesn’t mean they all will!
“Amazing! I’ll admit, I’m young with two accidents. This spiked my insurance rates and every quote I found.Jerry, though, helped me find affordable insurance. It truly helped me!” —Marcus F.
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FAQs
What are the best insurance companies after an accident?
State Farm and USAA are known to raise your rates sparingly after an accident.
How can you lower car insurance rates fast?
Reducing your coverage limits is a fast way to lower your car insurance rate. However, make sure you still have enough coverage to meet the minimum car insurance requirements in your state.
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