Every driver, even really good ones, can have a bad day on the road. But whether you simply dinged a parked car or caused a multi-vehicle pileup, accidents can really do a number on your auto insurance quotes in the future.


About 5.6 million car crashes were reported to police in 2013, the most recent numbers available from the National Highway Traffic Safety Administration. And according to the Property Casualty Insurers Association of America, you’ll file a claim for a collision about once every 17.9 years, meaning the average driver will have 3 or 4 accidents in a lifetime.


So yes, accidents happen. And they don’t always mean higher rates, but they do play a role if you’re shopping for auto insurance quotes.


Contributing factors 


Auto insurance companies pull the driving record of anyone who’s applying for a policy. Most look at the following factors when reviewing accidents:


  • Severity of the crash: Damages from an accident can run the gamut, from simple paint scratches to a totaled car. Generally, the more severe the crash, the more likely it is you’ll get a rate increase or, if you’re comparison shopping, higher auto insurance quotes.

  • The at-fault driver: In many cases, your rates will go up if an accident is your fault, but stay the same if someone else was to blame. However, some companies (depending on state law) will quote you a higher rate regardless of fault because you are seen as a greater risk to insure.

  • Your driving record: One accident may not affect your auto insurance quotes, unlike someone who has a record of multiple crashes.

Auto insurance quotes vary by insurer


Every company has its own rules that determine how an accident will affect your auto insurance quote. Some might quote you a higher rate because of an accident, while others may forgive and forget under such circumstances.


In some states, such as Massachusetts, there are laws limiting premium surcharges and the length of time you can be surcharged. If you want to know your potential rate increase, ask your agent for the insurer’s “surcharge schedule.”


Accident forgiveness


Most insurance companies offer a policy option known as accident forgiveness to customers with good driving records. Typically, this allows you to have one accident without a rate increase regardless of fault. But it’s accident forgiveness, not “forgetness.” If you have a second accident, expect to pay a higher premium.


Car accidents happen to good and bad drivers. They don’t always lead to pricier auto insurance quotes, but they do play an important part in how much car insurance costs when you’re shopping around for a new policy.


Sarah Cooke is a staff writer covering personal finance for NerdWallet. Follow her on Twitter @sarah_wolfe and on Google+.


Photo via iStock