Even if you are a careful, defensive driver, if you are on the road a significant amount of the time, there is still a risk of becoming involved in the car accident. With the more than six million traffic accidents in the United States annually, the odds are remarkable that you or someone close to you will be in one. And given such odds, one cannot help but ask, "How much can my auto rate increase after one accident?"

There are several factors that need to be looked at in consideration of this question. Even if the accident was not your fault, your insurance company will still have to shell out money to cover the costs of repairing the car and/or medical costs needed by the car’s passengers. Eventually, if you become involved in a number of other such accidents (not caused by you) your insurance provider may consider increasing your premiums because of your susceptibility to such occurrences.

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However, if you are the "at-fault" driver, or the one who caused the accident, then count on your insurance rate to rise. By how much differs from state to state and by insurer to insurer. Take the case of an Allstate policyholder, who states that after he was involved in a car accident, his rate was increased by thirty percent. But he says that Allstate denies having raised his rate - they just removed his Good Driver Discount. The bottom line is he ended up having to pay more to stay insured because of his involvement in an accident.

With other companies, an at-fault policyholder may find that for his or her first accident, an increase of ten percent or a loss of ten percent of the accident-free discount may be levied. The additional charge will remain in force for a number of years and then dropped. But if you again cause another accident while the first increase is still in effect, an even larger rate increase will be imposed. If you think this is harsh, consider the policies of some insurance companies, who will relieve you of your Good Driver Discount privilege even if the accident was not your fault.

The question "how much can my auto rate increase after one accident" is a good idea to explore with your insurance agent if you already have one or are still shopping for one. And it’s also a good idea to keep in mind to help you drive safer and more carefully.

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