Will My Insurance Go Up After a Minor Accident?

Posted on: July 12, 2025

Many drivers are concerned about how small fender benders might affect their premiums, and that makes sense. The truth is, insurance companies assess risk in many ways, and a seemingly insignificant accident may lead to higher costs over time. It makes sense to approach these claims with caution.

Does a Minor Accident Always Lead to a Rate Increase?

A rate increase is not guaranteed after a minor accident, but it is a possibility. Insurance companies consider the driver’s previous accident history, the cost of the claim, and who was at fault. If the company determines that the policyholder was responsible for the collision, there is a higher likelihood of a rate adjustment. Conversely, if the driver has a clean driving record and the damage was minimal, the insurer may choose not to adjust the rate.

Insurers typically review the driver’s claims history, the severity of the incident, and whether law enforcement issued any citations. Some companies use a points-based system to assess driving behavior, and an at-fault accident may result in points that contribute to increased premiums. Additionally, the amount paid on the claim—whether for property damage or minor medical expenses—can influence the decision to raise rates.

What if I Was Not at Fault for the Accident?

If the accident was caused by another driver and that driver is clearly liable, your insurance company may not raise your rates. However, some insurers still consider overall risk and may raise premiums depending on their internal policies. Even when a driver is not responsible for the incident, the insurer might look at the likelihood of future claims as part of its pricing model. It is possible to dispute such an increase, but the process depends on the company’s policies and local regulations.

Will My Rates Go Up If I Do Not File a Claim?

If you choose to pay for the damage out of pocket and avoid filing a claim, your insurer may never know about the accident. In those cases, the accident may not affect your premiums. However, if another driver was involved and filed a claim, or if a police report was filed, the insurance company may still become aware of the incident. Even without a claim, the presence of a documented accident on your record may lead to a future rate change, particularly if additional incidents occur.

How Long Will a Rate Increase Last After a Minor Accident?

Insurance rate increases typically last for three to five years, depending on the company and state regulations. During this time, the incident may be considered when your policy is renewed. Over time, the impact of the accident lessens, especially if there are no additional incidents on your record. Some insurers offer accident forgiveness programs for eligible drivers, which may prevent a rate increase after a single minor accident, but this option is not available to all policyholders.

Is It Worth Filing a Claim for Minor Damage?

If the repair costs are only slightly above the deductible, it may make more financial sense to pay out of pocket rather than risk a premium increase. However, if another party is involved or if there is the possibility of hidden damage or injury, filing a claim may be the safer route to avoid future disputes. We recommend reading your policy carefully; some require policyholders to report incidents.

Can I Switch Insurance Companies After a Minor Accident?

It may be possible to change insurers after an accident, but it may not lead to immediate savings. New insurance providers will typically review your driving and claims history, and the recent accident may influence the quotes you receive. While switching carriers may be beneficial in the long term, it is unlikely to eliminate the financial impact of a recent at-fault collision. Compare policies carefully and consider whether any new policy provides adequate protection based on your needs.

Freehold Car Accident Lawyers at Ellis Law Help Clients With Auto Insurance Claims

If you have questions about your rights following a minor car accident or concerns about insurance claims, our Freehold car accident lawyers at Ellis Law can help. For a free consultation, call 732-308-0200 or complete our online form. Located in Freehold, New Jersey, we serve clients in Asbury Park, East Brunswick, Toms River, Middletown, Jersey City, Long Branch, Neptune, Hudson County, Union County, Essex County, Monmouth County, Marlboro, and Ocean County, as well as Brooklyn and New York City.