The Cheapest Car Insurance for Drivers With Accidents (2024)

GEICO and State Farm have the cheapest average monthly liability and full-coverage rates for drivers with an accident. We’ll show you how to find cheap auto insurance after an accident.

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Filing an insurance claim will likely increase your car insurance premium. By how much depends on different factors.

Good drivers typically receive the best car insurance rates. But if you get into a car accident, your insurance company will likely view you as a high-risk driver, which means you’ll pay higher rates.

The national average rate for all drivers is $129 per month, but this increases to $180 per month for drivers with a speeding ticket on their record. Fortunately, you still have options. Auto-Owners, GEICO, Erie, and State Farm offer some of the lowest rates for drivers with an accident on their record.

We’ll cover everything you need to know about getting cheaper coverage with an accident on your record.


Key Takeaways:

  • The average driver experiences a 44% rate increase after just one at-fault accident.
  • Auto-Owners is the cheapest company for liability-only insurance, at $55 per month, while State Farm is the cheapest for full-coverage insurance, at $139 per month.
  • Drivers in Vermont and Maine pay the lowest average car insurance after an accident, at around $90 per month.

7 Cheapest Insurance Companies for Drivers With an Accident

Damaged car after an accident

Your age, credit score, ZIP code, and the type of vehicle you drive all influence your car insurance costs, but your driving history is one of the most significant factors. This is because insurers see your driving history as a predictor of your future driving habits.

So, when you get a driving infraction like an at-fault accident, your rates will likely increase because companies view you as a higher-risk driver. But every insurance company evaluates driving history differently, so finding affordable car insurance after an accident is still possible.

The companies featured in the table below have the cheapest rates for drivers with an accident, according to Compare.com data.

Insurance Company Liability Only Full Coverage
Auto-Owners $55 $141
GEICO $68 $161
Erie $69 $148
State Farm $76 $139
American Family $97 $172
Progressive $107 $218
Allstate $113 $278

Auto-Owners is the cheapest option for a liability-only policy, at nearly half the cost of Progressive and Allstate. State Farm is the most affordable insurer for full coverage, although Auto-Owners isn’t far behind.

Auto-Owners’ rate is likely more affordable because its accident forgiveness program waives the surcharge for your first at-fault accident. State Farm’s wide variety of discounts helps bring down the cost of auto insurance.

Let’s take a look at each insurer in a bit more detail.


1. Auto-Owners

With Auto-Owners, drivers with a recent accident on their record pay an average monthly rate of $55 for liability-only insurance and $141 for full-coverage. The insurer offers a wide variety of coverages that can be beneficial following an accident.

If you’ve been claims-free for at least 36 months, you’re eligible for at-fault accident forgiveness, and Auto-Owners will waive the surcharge for your first at-fault accident. The company also covers additional expenses such as car rental, food, and lodging after an accident.

Pros:

  • Accident forgiveness available
  • Rental car coverage available

Cons:

  • Not available in all 50 states
  • Online quotes not available

2. GEICO

GEICO drivers pay an average monthly rate of $68 for minimum-liability insurance and $161 for a full-coverage policy after an accident. The company also offers rental reimbursement, which helps pay your rental car costs while your car is repaired following an accident.

Policyholders can take advantage of GEICO’s many discounts, too. For example, you can earn a discount for bundling your auto and homeowners insurance, using certain safety features in your car, and taking an approved defensive driving course.

Pros:

  • Wide variety of available discounts
  • Rental reimbursement available

Cons:

  • New-car replacement coverage not available
  • Gap insurance not available

3. Erie

Erie policyholders with a recent accident pay an average monthly rate of $69 for liability-only coverage and $148 for full coverage. The insurer also offers pet coverage and pays up to $500 in treatment costs if your pet is injured in a car accident.

The company also provides personal item coverage and reimburses you up to $350 for lost personal items in your insured vehicle. But Erie isn’t available in all 50 states, so not everyone will be eligible for coverage.

Pros:

  • Pet coverage available
  • Above-average J.D. Power score

Cons:

  • Only available in 12 states and the District of Columbia
  • Online policy purchasing and claims filing not available

4. State Farm

State Farm has an average monthly rate of $76 for liability-only coverage and $139 for full coverage, making it the cheapest full-coverage option after an accident. The company is known for offering excellent customer service and a wide variety of coverages, like rideshare insurance, rental coverage, and roadside assistance.

But State Farm doesn’t offer gap insurance, which pays the difference between what the vehicle is worth and what you still owe on your financing. This could be a significant disadvantage for anyone who owes more on their car than it’s worth.

Pros:

  • High customer satisfaction ratings
  • Rideshare insurance available

Cons:

  • Gap insurance not available
  • Must purchase a policy from an insurance agent

5. American Family

American Family has an average monthly rate of $97 for liability-only insurance and $172 for full coverage for drivers with a recent accident. Plus, the company has received an excellent rating from AM Best for the past 21 years.

In addition to standard coverages like collision insurance, uninsured motorist coverage, and bodily injury liability, American Family offers gap insurance, rental reimbursement coverage, and emergency roadside assistance.

You can lower your insurance rate further by taking advantage of the company’s many discounts.

Pros:

  • Gap insurance available
  • AM Best financial strength rating of A (Excellent)

Cons:

  • Only available in 18 states
  • Average car insurance rates

6. Progressive

Progressive’s average monthly rate of $107 for liability-only insurance and $218 for full coverage for drivers with a recent accident. The company offers coverages such as loan/lease payoff, rental car reimbursement, and pet injury coverage that can be helpful after an accident.

You can cut your insurance costs by taking advantage of the many discounts Progressive offers. For example, the company’s “deductible savings bank” feature reduces your deductible by $50 for each policy period you go without an accident or violation. You can potentially lower your premium if you enroll in its usage-based insurance program to track your driving habits.

Pros:

  • Wide variety of available discounts
  • Coverage available in all 50 states

Cons:

  • Below-average J.D. Power score
  • More expensive than other insurers listed

7. Allstate

Allstate has an average monthly cost of $113 for liability-only insurance and $278 for full-coverage insurance after an accident. But the company received a below-average J.D. Power score rating in 2023 — though it’s consistently recognized for its superior financial strength by AM Best.

Allstate offers rideshare insurance, classic car coverage, and rental car reimbursement coverage. And, if you don’t spend much time driving, you could save with Milewise, Allstate’s pay-per-mile coverage.

Pros:

  • Superior financial strength rating from AM Best
  • Good option for low-mileage drivers

Cons:

  • More expensive than any other insurer on this list
  • Below-average J.D. Power score

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How Does an Accident Affect Car Insurance Rates?

Woman on the phone after a car accident

Your insurance premium will increase when you file a claim for an at-fault accident. In fact, the average auto insurance rate increases by 44% after one accident, according to data from Compare.com — and these rate increases usually remain in place for 3-5 years after you file the claim.

The following table shows the rate increase you can expect from the five largest insurers after you get into an at-fault accident.

Insurance Company Clean Record At-Fault Accident Rate Increase
Allstate $155 $195 26%
GEICO $70 $115 64%
Nationwide $123 $196 59%
Progressive $109 $162 47%
State Farm $86 $107 24%

Drivers with clean driving records pay the lowest rates for auto insurance — as much as 64% and 59% less with GEICO and Nationwide, respectively. If you have a bad driving record, your monthly rates will increase — but the increase can vary dramatically depending on your insurance company.

State Farm has the lowest average rate increase, while GEICO’s is the highest. However, it’s worth noting that GEICO’s monthly premiums following an at-fault accident are still pretty affordable, at an average rate of $115 per month.

Cheapest Car Insurance Rates After an Accident by State

How much your car insurance rate increases following an accident also depends largely on where you live.

The following table outlines the average statewide rate following one at-fault accident in the last three to five years, as well as the cheapest car insurance company for drivers in that state.

State Statewide Average Rate Cheapest Company Cheapest Average Rate
Alabama $162 COUNTRY Financial $93
Alaska $110 GEICO $65
Arizona $206 GEICO $109
Arkansas $170 State Farm $73
California $205 Progressive $116
Colorado $216 American National $80
Connecticut $244 State Farm $88
Delaware $213 State Farm $99
Florida $336 State Farm $142
Georgia $240 Georgia Farm Bureau $86
Hawaii $109 State Farm $66
Idaho $118 State Farm $54
Illinois $183 SECURA $64
Indiana $124 Pekin Insurance $68
Iowa $103 Hastings Mutual $46
Kansas $182 Auto-Owners $82
Kentucky $240 State Farm $92
Louisiana $409 State Farm $158
Maine $91 Concord Group $58
Maryland $253 GEICO $127
Massachusetts $212 State Farm $68
Michigan $287 SECURA $43
Minnesota $176 SECURA $66
Mississippi $149 State Farm $83
Missouri $235 Missouri Farm Bureau $85
Montana $150 State Farm $62
Nebraska $137 EMC Insurance $58
Nevada $254 COUNTRY Financial $55
New Hampshire $115 Commerce Group $69
New Jersey $322 NJM Insurance $110
New Mexico $157 State Farm $82
New York $368 NGM $115
North Carolina $131 Erie $88
North Dakota $146 State Farm $65
Ohio $127 Hastings Mutual $54
Oklahoma $156 State Farm $69
Oregon $236 GEICO $115
Pennsylvania $210 Cumberland Mutual $88
Rhode Island $193 State Farm $70
South Carolina $168 American National $61
South Dakota $113 Farmers $71
Tennessee $145 Tennessee Farmers $69
Texas $201 GEICO $69
Utah $196 Auto-Owners $82
Vermont $90 State Farm $50
Virginia $163 Virginia Farm Bureau $52
Washington $152 State Farm $80
Washington, D.C. $151 GEICO $81
West Virginia $153 State Farm $66
Wisconsin $153 SECURA $54
Wyoming $117 State Farm $68

Vermont, Maine, and Iowa have the cheapest car insurance rates following one at-fault accident. Drivers in these states pay a monthly rate below the national average of $189 per month, according to Compare.com. Louisiana is the most expensive state, with an average monthly rate of $409.

State Farm is the cheapest insurer in 19 different states. At the end of the day, either State Farm or GEICO is the cheapest option in half the country.

6 Tips to Get Cheaper Auto Insurance After an Accident

black and silver car in a car accident

Below, we explore six ways to lower your insurance costs and find cheap car insurance following an accident.

1. Ask about accident forgiveness

Insurance companies understand that accidents happen, which is why some offer accident forgiveness. This coverage is usually offered to drivers with a good driving history for several years. The specifics will vary depending on your insurance company, but most agree to overlook your first accident when calculating your insurance premiums.

2. Think twice before filing a claim

Most insurance companies recommend filing a claim after a car accident. But if you’re the only person involved in the accident or the damages cost less than your deductible, filing a claim may not be worth it.

3. Look for discounts

Most insurance companies offer discounts as a way to lower your insurance premiums. You can save by taking advantage of the following discounts:

  • Telematics: Companies like Allstate, Progressive, and GEICO offer telematics programs. For example, Allstate’s Drivewise tool measures your driving behavior and rewards you for good driving.
  • Safe vehicle: You can earn a discount for having certain safety features in your car, like anti-lock brakes, airbags, and anti-theft systems.
  • Multi-policy: You can also earn a discount for purchasing multiple insurance policies from the same company.

4. Update your coverage choices

It’s a good idea to review your coverage choices regularly and update them accordingly. You may find you’re still paying for coverage you don’t need.

For example, if you drive an older car that’s paid off and not worth much, switching to liability-only insurance may lower your auto insurance premiums.

5. Increase your deductible

Your deductible is the out-of-pocket expense you’ll pay before your insurance coverage kicks in when you file a claim. The higher your deductible, the lower your insurance premiums, so raising your deductible is an excellent way to save money on car insurance.

If you choose the minimum requirements for car insurance, make sure you have enough money in savings to cover the deductible if you do have to file a claim.

6. Compare quotes

The best way to save money on car insurance is to compare car insurance quotes from at least three different insurance companies. You can use an online comparison tool to evaluate the quotes you receive.


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Auto Insurance After an Accident FAQs

If you have more questions about purchasing auto insurance after an accident, the following frequently asked questions may help.

Does car insurance go up after a not-at-fault accident?

It’s possible. Whether your car insurance increases after a not-at-fault accident depends on your location. Your rate will increase in certain states, but it won’t go up as much as it would for an at-fault accident.

Can your insurance company drop you after an accident?

Yes, but not always. Insurance companies can always choose not to renew your policy at the end of the term. But most insurers won’t drop you after one accident — your rates will likely increase first.

Will your auto insurance rates go up if you have accident forgiveness?

It depends. Whether your auto insurance rates increase with accident forgiveness varies on your insurer and the terms of your policy. Many insurance companies will waive the rate increase for your first accident if you have accident forgiveness.

Can you switch insurance companies if your rates increase after an accident?

Yes. You can switch insurance companies at any time. But your insurer may charge a cancellation fee if you switch companies mid-policy.


Methodology

Data scientists at Compare.com analyzed more than 50 million real-time auto insurance rates from more than 75 partner insurance providers in order to compile the quotes and statistics seen in this article. Compare.com’s auto insurance data includes coverage analysis and details on drivers’ vehicles, driving records, insurance histories, and demographic information.

All of the quotes listed in this article have been gathered from a combination of real Compare.com quotes and external insurance rate data gathered in collaboration with Quadrant Information Services. Compare.com uses these observations to provide drivers with insight into how auto insurance companies determine their premiums.


Sources 

  1. Insurance Information Institute, “Do auto insurance premiums go up after a claim?,” Accessed November 3, 2023.
  2. Insurance Information Institute, “What is gap insurance?,” Accessed November 3, 2023.
  3. J.D. Power “2023 U.S. Insurance Shopping Study,” Accessed November 3, 2023.
  4. AM Best, “AM Best Takes Various Credit Rating Actions on The Allstate Corporation and Its Key Subsidiaries,” Accessed November 3, 2023.
  5. Mass.gov, “Accident Forgiveness,” Accessed November 3, 2023.
  6. Insurance Information Institute, “Nine ways to lower your auto insurance costs,” Accessed November 3, 2023.

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