A primary factor that impacts your auto insurance rates is whether you’ve previously been in an accident. Unless you have accident forgiveness, chances are high that your premiums will increase after you’re involved in a wreck, especially if you were at fault.

But just how much does insurance go up after an accident? You can expect a 30% to 70% hike. Is there anything you can do? We’ll explain.

How does insurance increase after an accident?

Calculating the cost of auto insurance coverage isn’t linear. Multiple factors are plugged into each carrier’s proprietary algorithm, helping the company assess how much of a risk you are to insure and how likely you are to file a claim.

The factors that influence your rates — and subsequently, your rate increases — include your:

• Age

• Gender

• Driving record

• Location

• History of accidents and moving violations

• Vehicle (make, model, age)

• Type of coverage you purchase

• Credit score

Some factors can result in surcharges or penalty fees that raise your insurance premiums. Surcharges can be imposed for moving violations, accidents, coverage lapses, or, in some cases, even adding a new vehicle. In some cases, the surcharge will fall off after a period of time, while others may follow you permanently.

If you’re involved in an at-fault accident, for instance, odds are that your premiums will increase for at least the next three years (but possibly more). In some states, you might even find that your rates can increase after accidents where you were not at fault.

With all this said, how much car insurance rates increase after an accident depends.

Car insurance companies place different weights on accidents and may consider factors such as accident severity and cost of the claim. A small fender bender isn’t going to affect you the same way a total loss crash or drunk driving accident will. A claim on your comprehensive coverage — for something like vandalism of your vehicle or a tree falling in your driveway — probably won’t raise car insurance premiums as much as an at-fault accident.

Current data indicates that, depending on various factors, a premium increase by anywhere from 30% to 70% is typical, with the average falling around 52% nationally.

The role of accident forgiveness

The only way to guarantee that a single at-fault accident doesn’t increase your premiums at renewal is to enroll in accident forgiveness coverage. With this add-on protection, your carrier won’t increase your premiums as a result of a first accident within a set period.

Some auto insurance companies, including GEICO and Progressive, offer free accident forgiveness programs to select customers as a reward for their loyalty and/or safe driving history. Other insurance providers, such as Nationwide, offer optional accident forgiveness coverage that you pay extra for.

How to report an accident

If you’re involved in an auto accident, regardless of fault, it’s important to report it to your carrier promptly.

Immediately after the accident, gather the information your carrier will want for your insurance claim, including the location and time of the accident, other driver’s information (their name, insurance policy, vehicle, driver’s license, etc.), photos of vehicle and property damage, and the record number for any police report taken at the scene.

Contact your carrier to report the incident and give an initial statement. Even if you’re the not-at-fault driver, reporting the accident to your own insurance helps ensure that you have immediate access to the benefits you need most, such as a rental car and medical payments coverage.

The accident claims process will look different depending on the details of the accident and your car insurance policy. If you have questions along the way, contact your carrier or insurance agent assigned to your claim.

Steps to minimize rate increases

The best way to avoid rate increases due to an auto accident is to, well, avoid accidents as best you can. This means practicing safe driving habits such as following speed limits, ignoring electronic devices while behind the wheel, and limiting distractions. Speeding tickets and other traffic violations can also lead to higher insurance costs.

Taking a defensive driving course can be another great way to not only improve your driving skills but also qualify for a discount. Many carriers will offer discounts for completing a safe driving course every few years, or you may even be able to negate the effects of a moving violation.

Over time, even without an accident, you may still be faced with paying higher rates, even for the same auto insurance policy. For this reason, it’s wise to evaluate your policy and coverage regularly and compare your options to ensure you’re getting cheap car insurance — and only as much coverage as you need. If you find that your current rates are consistently higher than others, it might be worth switching carriers.