How to Calculate the Effect of a Car Accident on Your Insurance Rate

Wed, 3/21/2018 - 12:52 am by Kirsten Rincon

If you get into a car accident, a report will be added to your driving record. Auto insurance providers do not look favorably on tickets and at-fault accidents. While it is well understood that an auto accident can raise your insurance premiums, there are a lot of questions about “how much?” To answer this question, has created the Car Accident Insurance Calculator.

After a car accident, the average American’s auto insurance policy will increase by $293 a year, or $1,468 over a 5 five year period. But rate changes are influenced by a wide variety of factors. The Car Accident Insurance Calculator allows you to get an accurate estimate of the effects that an accident will have on your policy.

Car Accident Insurance Calculator

How the Accident Insurance Calculator Works

The Car Accident Insurance Calculator is a free tool that allows drivers to predict how much their insurance premiums will increase after an at-fault car accident. Based on driver inputs and regional averages, the tool will calculate how much a policy will increase after one, or two at-fault accidents. Drivers can select their state of residence to get a more precise, state-specific, result, or they can base their calculations on the national average. Policyholders can also input their current yearly premium to produce the most accurate output.

The Results

After inputting your information, the calculator will determine how an accident will affect your auto insurance rate. The first output explains how much extra you will spend on insurance after your first accident. This amount represents the additional expenses that you will incur over a 5-year period. The calculator reports for this time period because insurance companies generally charge increased premiums for a period of 5 years following an accident. However, the amount of time that an accident will stay on your driving record may vary across states.

The tool’s output also includes a responsive graph, which visually captures the increase in spending. Below the graph, a chart breaks down the additional cost into monthly, yearly, and 5-year time periods.

Risk Levels

Auto insurance premiums depend on more than driving history and place of residence. There are many factors that are incorporated into the insurance companies’ pricing decisions. Drivers are assigned different levels of risk, depending on factors such as age, gender, and vehicle type. Drivers that impose higher risk to insurers are charged higher premiums. The Car Accident Insurance Calculator displays results for different risk levels. Younger drivers, with previous offences on their driving record, will be of higher risk, and experience sharper penalties after an accident.

The Car Accident Insurance Calculator also estimates the effects that a second accident will have on your premiums. After a second car accident, insurance premiums will increase even more. On average, insurance rates will increase by an additional 86% after a second at-fault accident claim is reported.

The Car Accident Insurance Calculator is designed strictly for informational purposes. All results are estimates. For the most accurate information, get an auto insurance quote and compare rates.