Car Insurance After an Accident: What to Do and What to Expect

After an accident, you should report it to your insurer promptly, cooperate with the claim and expect a fault decision. If you are found at fault, your premium will often rise at renewal and the surcharge commonly lasts three to five years. A not-at-fault accident usually has little or no effect on your rate.

How much you pay depends on your insurer, your state, the severity of the claim and your driving history. Here is how the process works and how to limit the financial damage.

What to do right after a car accident

Your first priorities are safety and documentation:

1. Check for injuries and call 911 if anyone is hurt or the scene is dangerous.
2. Move to safety if the vehicles can be moved and it is legal to do so.
3. Exchange information with the other driver: name, phone, insurer, policy number, license and plate numbers.
4. Document the scene. Take photos of all vehicles, damage, road conditions, signs and license plates.
5. Get a police report or report number when police respond, and note witness contact details.
6. Avoid admitting fault at the scene. Stick to facts; fault is determined later.

Many states require you to report accidents above a certain damage threshold or involving injuries to police or the motor vehicle agency. Check your state's rules.

How to file a car insurance claim

Contact your insurer as soon as practical, by app, website or phone. You will usually need:

• Date, time and location of the accident
• Other driver's information and insurer
• Photos and the police report number
• A description of what happened

You can file with your own insurer or directly with the at-fault driver's insurer (a third-party claim). Filing through your own collision coverage is often faster, and your insurer may later recover costs, including your deductible, from the other company through a process called subrogation.

If the at-fault driver has no insurance or too little, your uninsured motorist coverage may pay for your injuries and, in some states, your car's damage.

Dealing with the insurance adjuster

After you file, an adjuster will review the claim, inspect the damage (in person or through photos) and decide how much the insurer will pay. A few habits help the process go smoothly:

• Respond promptly to requests for documents, photos or statements.
• Get repair estimates if the insurer allows it, and ask whether you can choose your own repair shop.
• Ask how the car will be valued if it may be a total loss. Payouts are based on actual cash value, so gather listings for comparable vehicles in case you disagree with the offer.
• Be careful with recorded statements to the other driver's insurer. You can keep answers factual and brief, and you may want legal advice if injuries are involved.
• Keep copies of everything in writing.

If you believe a claim is being handled unfairly or delayed without explanation, you can ask for a supervisor, request the decision in writing and, if needed, file a complaint with your state insurance department.

How fault affects your rates

Insurers determine fault using police reports, statements, photos and state negligence rules. In some states, fault can be shared by percentage.

In no-fault states, your own personal injury protection pays your medical costs first regardless of who caused the crash, but fault still matters for property damage and rate decisions.

How long an accident affects your insurance

Many insurers apply an at-fault surcharge for three to five years, and it often shrinks each year you stay claim-free. Once the accident ages out of your insurer's look-back window, the surcharge usually drops off at the next renewal.

Some policies include accident forgiveness, which prevents your first at-fault accident from raising your rate. It may be included for long-term customers or sold as an add-on, and a few states restrict or regulate it. Check your policy before assuming you have it.

Should you pay for a small accident yourself?

For minor damage, paying out of pocket can sometimes be cheaper than a claim that raises your premium for years. But you should still notify your insurer as your policy requires, especially if another party is involved, because injuries or damage can surface later.

How to lower your insurance after an accident

• Compare quotes. Insurers weigh accidents differently, so a rate increase is a good trigger to shop. Our guide to how to lower car insurance covers more strategies.
• Take a defensive driving course. Some insurers offer a discount, and in some states it can offset points.
• Raise your deductible if you can afford a larger out-of-pocket cost.
• Stay claim-free. The surcharge usually fades as time passes without new incidents.
• Ask about accident forgiveness when you shop, so a future mistake does not hit your rate as hard.
• Review your coverage. If the accident left you driving an older, lower-value car, dropping collision may make sense.

If you also need to file a home insurance claim, for example if a car damaged your house or garage, the process is similar; see our guide to filing a home insurance claim.

The bottom line

After an accident, focus on safety, document everything and report it to your insurer promptly. An at-fault claim will often raise your premium for three to five years, while a not-at-fault claim usually has little effect. When your rate rises, compare quotes; another insurer may price your record more favorably.