Does a Car Insurance Premium Increase After Claiming for an Accident?
A car accident can leave more than just physical and emotional scars — it can also affect your wallet long after the crash. One of the most common concerns drivers have after filing a claim is: Will my car insurance premium go up?
The answer depends on several factors — including fault, the type of claim, your insurer’s surcharge policy, and California’s strict regulations on rate changes. Here’s what you need to know.
How Car Insurance Premiums Are Calculated
In California, insurers calculate premiums based on a mix of primary and secondary factors. By law (California Insurance Code § 1861.02), they must prioritize these primary factors:
- Driving safety record
- Annual mileage
- Years of driving experience
Other factors like your location, vehicle type, and claims history can be considered — but they can’t outweigh the top three.
Insurers also review past accident claims and violations to determine your overall risk profile. The higher the perceived risk, the higher your rate.
California Rules on Premium Increases
California has some of the strongest consumer protections in the country when it comes to auto insurance. Notably:
- No premium increase for not-at-fault accidents – Title 10, § 2632.5(c)(1) prohibits insurers from raising your rate solely for a claim where you weren’t at fault.
- Regulated surcharge schedules – Insurers must file their surcharge policies with the California Department of Insurance (CDI) for approval.
- Transparent rating – You can request the exact factors and weightings your insurer uses to calculate your rate.
When Filing a Claim Might Raise Your Premium
Filing a claim doesn’t always mean your premium will go up. It depends on:
1. Fault in the Accident
California follows pure comparative negligence — meaning fault can be split between parties. If you’re 51% or more at fault, your insurer will likely apply a surcharge.
- At-fault claims – Usually result in a premium increase.
- Not-at-fault claims – Cannot be used to raise your rate if you provide proof of no fault.
2. Type of Claim
- Collision or liability claims – At-fault claims in these categories usually increase premiums.
- Comprehensive claims – Incidents like theft, vandalism, or natural disasters typically don’t affect your rates.
- Uninsured motorist claims – Premiums generally can’t be increased unless you share liability.
3. Your Insurer’s Surcharge Policy
Every insurer in California has a set surcharge schedule — approved by the CDI — outlining how much premiums rise after certain claims.
- Increases often apply when damage exceeds $1,000.
- Multiple at-fault accidents within three years can push rates even higher.
Example: If you cause an accident with $1,100 in damage, your premium might rise 20–40% for the next three years (varies by insurer).
4. Accident Forgiveness Programs
Some carriers offer accident forgiveness for your first at-fault accident if you’ve had a clean record for 3–5 years. These programs must still comply with California’s rate approval rules.
How Long the Increase Lasts
For most at-fault accidents, surcharges in California last 36 months (three years) — then they must be removed if you remain violation- and accident-free during that time.
Tips to Reduce the Impact on Your Premium
- Drive safely – Preventing future accidents keeps your record clean.
- Take a defensive driving course – Many insurers offer discounts for approved training.
- Shop around – Switching insurers can help you find a better rate post-accident.
- Raise your deductible – Lowers your premium but increases out-of-pocket costs in a future claim.
- Bundle policies – Combining auto and home coverage can unlock discounts.
Your Rights as a California Driver
The California Department of Insurance gives you tools to fight unfair rate hikes:
- Rate filing review – Insurers must justify increases.
- Complaint process – You can formally challenge a rate increase you believe is unlawful.
- Transparency rules – Insurers must explain how they calculated your premium.
Not every claim will increase your car insurance premium — and in California, strong consumer protections make sure you aren’t penalized for accidents that aren’t your fault.
If you’ve been in an accident, especially one involving injuries or disputed fault, consult an experienced auto accident attorney in Oxnard. They can help you gather the evidence needed to prove liability, protect your insurance record, and recover full compensation for your losses.
