After a car accident, one of the first financial questions most drivers ask is, “How much will my insurance go up?” The short answer: it depends. Insurance rate increases vary based on fault, the type of accident, your driving history, and your auto insurance provider’s car insurance policy.

Auto insurers use detailed data to calculate your new rate after an accident. They assess your risk as a driver based on many factors, including prior claims, your vehicle type, and your state’s insurance laws. In Nevada, for example, most insurers typically raise premiums after an at-fault accident, although the percentage increase can vary between companies.

Understanding how an accident affects your car insurance can help you plan for the financial impact and take steps to reduce long-term costs. Our car accident lawyers at Temple Injury Law will explain how insurance rate increases work after an accident, what factors influence them, and what you can do to protect your rights and your finances in Nevada.

Average Insurance Rate Increase After an Accident

According to a Forbes report, the national average premium increase after an at-fault accident is roughly 45%. However, this rate hike varies across insurers. Companies like State Farm, GEICO, and Progressive use different algorithms to determine how much a driver’s risk has changed. Some increase rates by only 20%, while others can raise them by 60% or more.

For Nevada drivers, rate increases tend to stay within 35%–45% after a single at-fault crash. The difference often depends on the severity of the accident, the total property damage, and the medical expenses incurred.

Examples of how an accident affects car insurance rates

  • Minor accident (under $1,000 in damage): 10–20% increase
  • Moderate accident (medical bills, higher property damage): 30–40% increase
  • Severe accident (injuries, multiple vehicles, high claim amount): 50%+ increase

Each insurer has its own formula for determining rates, but all share one principle: drivers with recent claims are considered a higher risk to insure.

At-Fault vs. No-Fault Accidents: Why It Matters

Insurance companies distinguish between at-fault and not-at-fault accidents when determining rate increases.

  • At-fault accident: You caused or mainly contributed to the crash. Your insurer pays for the other driver’s property damage and medical bills.
  • Not-at-fault accident: Another driver caused the collision, and their insurer should cover your losses.

In Nevada, an at-fault state, the driver responsible for the accident is liable for the damages. If you’re even partly at fault, your rate may still go up. Under Nevada’s modified comparative negligence rule (NRS 41.141), you can recover compensation if you’re less than 51% at fault, but your settlement and insurance impact may be reduced proportionally.

A not-at-fault accident might not increase your premiums, but it still depends on your insurer’s policies. Some insurance providers raise rates slightly even for not-at-fault accidents, claiming it reflects a higher overall risk.

Factors That Determine How Much Your Insurance Goes Up

Car insurance rates after an accident don’t rise in a fixed way. Instead, insurers weigh several factors:

  1. Fault Determination: The primary factor. If you’re found at fault, expect a rate increase. If you’re not at fault, your insurer may not raise your premium, especially if you provide a clear police report.
  2. Severity of the Accident: Larger claims, involving property damage, medical expenses, or lost wages, usually result in bigger premium increases.
  3. Your Driving Record and History: Drivers with prior speeding tickets, multiple claims, or other at-fault accidents pay more. Those with an otherwise clean driving record may see a smaller bump.
  4. Type of Claim Filed: A collision claim often affects rates more than a comprehensive claim (such as hail or vandalism).
  5. State Laws: Each state regulates insurance differently. In Nevada, insurers can legally raise rates after any at-fault accident reported within the last three years.
  6. Insurance Company Policies: Every insurance company has its own internal guidelines for handling accidents. Some offer accident forgiveness; others do not.
  7. Amount of the Claim: A small fender-bender may not raise rates if the claim is under a certain threshold. Higher claims almost always trigger a premium increase.
  8. Coverage Options and Deductibles: Drivers with low deductibles or optional coverage like rental reimbursement may experience more noticeable premium adjustments.

How Much Does Insurance Go Up After a Not-At-Fault Accident?

If another driver hits you and you’re not at fault, you might assume your rates won’t change. In most cases, that’s true, but there are exceptions.

Some insurers view any accident, even a not-at-fault one, as a sign of increased exposure to risk. As a result, they may slightly raise your rates or remove certain discounts. The increase is usually slight, often less than 5%, but it depends on your insurer.

To protect yourself, always obtain a police report after an accident. It serves as official documentation of the fault, which helps ensure the responsible driver’s insurer covers your damages.

Accident Forgiveness: How It Works

Accident forgiveness coverage can help prevent your rates from increasing after your first at-fault accident. Many insurers offer this as an add-on or include it automatically for long-time customers with clean driving histories. Here’s how it typically works:

  • You must have a clean driving record for at least three to five years.
  • Your first at-fault accident is “forgiven” and won’t affect your premium.
  • Future accidents will still trigger rate increases.

While it costs extra, accident forgiveness can pay for itself if you have a single car insurance claim during the coverage period.

Example:
If your insurance premium is $1,800 per year and you cause an accident that would normally raise it 40% (to $2,520), accident forgiveness saves you $720 annually.

How to Minimize the Auto Insurance Increase After an Accident

Even after an accident, you can take steps to limit the increase in your rates.

  1. Ask About Accident Forgiveness: If you already have it, you may not see any rate hike. If not, check if your insurer offers accident forgiveness programs that may be applicable retroactively.
  2. Compare Quotes from Different Insurers: After a claim, your insurer may raise your premium, but other companies might not penalize you as harshly. Comparing quotes from multiple insurers can reveal better rates.
  3. Take a Defensive Driving Course. Some insurers offer discounts to drivers who complete approved safety courses, helping offset rate increases.
  4. Raise Your Deductible: A higher deductible lowers your monthly premium. Just be sure you can afford the out-of-pocket expenses in case another accident occurs.
  5. Maintain a Clean Driving Record: Avoid additional violations, such as speeding tickets, to demonstrate to insurers that you’ve improved your driving habits.
  6. Ask Your Insurance Agent About Discounts: Insurers offer discounts for bundling policies, installing anti-theft devices, maintaining good credit, or driving fewer miles annually.
  7. Wait It Out: If you maintain accident-free driving for several years, your insurance rate will typically return to its pre-accident level.

How Temple Injury Law Helps When Insurance Costs Go Up After an Accident

When your car insurance premium increases after an accident, it’s often just one part of a larger financial problem. Between medical expenses, lost wages, and vehicle repairs, many injured drivers find themselves struggling to manage both recovery and insurance issues.

That’s why our team at Temple Injury Law guides you. Based in Las Vegas, our firm represents people who were hurt in car accidents, rideshare crashes, truck collisions, and other personal injury cases. We understand how at-fault and not-at-fault accidents affect not only your health but also your insurance rates and financial stability.

Our team works to ensure that you’re not unfairly blamed for an accident you didn’t cause, because being wrongly labeled “at fault” can make your insurance go up unnecessarily. We thoroughly review police reports, witness statements, and crash data to accurately establish fault and protect your driving record.

If the accident left you facing higher premiums, medical bills, or property damage, we can help you recover compensation for:

  • Out-of-pocket expenses and deductible payments
  • Ongoing medical treatment and therapy
  • Lost income from time off work
  • Vehicle repairs and diminished value

As your car accident lawyer, Temple Injury Law handles these cases on a contingency fee basis, so you pay nothing unless we win compensation for you. We deal directly with the insurance companies. So, you don’t have to face adjusters or confusing claim processes alone.

Speak With a Car Accident Lawyer Today

After an accident, the real challenge isn’t just fixing your car or healing from injuries. It’s dealing with the insurance company that wants to pay as little as possible. Many drivers are unaware that a single mistake in a claim can result in higher insurance premiums or a denied payout. That’s where we come in.

At Temple Injury Law, we guide clients through the entire claims process and protect them from unfair insurance tactics. We’ve seen how a single accident can affect someone’s financial security and peace of mind. Our job is to make sure that doesn’t happen to you. From reporting your accident on time to negotiating with insurers, we handle the details so you can focus on recovery.

Clients like Shane Christensen remind us why we take pride in what we do. He shared:

I’m extremely impressed with the level of professionalism Jeff and his team demonstrated throughout my case. Jeff took the time to clearly explain all the details, breaking down the numbers in a way that left no room for confusion. What stood out to me was his transparency—he even encouraged me to review or audit everything if I wanted, without any defensiveness. While I fully trust him, it was reassuring to know I had the option to verify the details myself.

If you’ve been injured or are concerned about how an accident may impact your insurance or finances, don’t wait. Call Temple Injury Law today for a free consultation. We’ll review your situation, explain your options, and fight to secure the compensation you deserve—on a contingency fee basis, meaning you don’t pay unless we win.