After getting into a car accident in California, you may find that your automobile insurance rates increase. Whether this happens to you – and if so, by how much – will depend on the circumstances, including your insurance company and policy, fault for the accident, and the severity of the crash.
When Will a Car Insurance Company Raise My Rates in California?
California is an “at-fault” or “tort-based” state when it comes to liability, or financial responsibility, for an automobile accident. Under this rule, the party that is at fault for causing a crash must pay for the damage, typically through their automobile insurance policy.
Due to the fault-based law, if an individual is not at fault and therefore not required to pay for a car accident, their insurance company generally cannot raise the rates because of the accident under California’s Proposition 103. The rates may only be raised if the policyholder is at fault.
If an investigation finds that you are liable for a car crash and your policy is used to pay for the other driver’s medical bills and property repairs, your rate increase will not happen immediately. Instead, you can expect an increase in your insurance premiums at your next renewal period.
What Type of Insurance Increase Should I Expect?
The increase in price for your automobile insurance policy after an at-fault accident will depend on the circumstances. Each situation is unique. Your insurance company will use its own underwriting algorithm to calculate the size of the premium increase. However, on average, prices increase around 20 to 50 percent, or more for a severe crash.
According to 2025 national insurance data, the average increase is currently around 44 to 49 percent in California. Factors used in an insurance company’s calculations include the policyholder’s driving record, the number of claims against the driver, the severity of the collision and how much the insurer had to pay for the accident.
How Much Will My Insurance Go Up After an Accident?
How Long Will an Insurance Premium Increase Last?
On average, raised insurance rates due to an at-fault car accident in California will last about three years. However, crash-related surcharges may remain on a policyholder’s risk assessment for up to five years, depending on the circumstances. More egregious acts of wrongdoing, such as driving under the influence involved in an accident, can affect the length of the insurance increase.
What Can I Do to Lower My Car Insurance Costs?
You may want to consider shopping around for a different insurance provider after causing or contributing to a car accident in California. Your own car insurance policy may increase substantially after your collision, as you will be viewed as a higher risk to the insurer. A new insurance provider, however, may offer special prices or benefits to new clients.
You can also look into adjusting the deductibles you currently have on your policy. Reducing your deductibles can mean you will face higher costs out of pocket if another incident occurs, but it could lower your premiums. If you have more than California’s required amounts of insurance on your policy, reducing your coverage can also lower your bill.
Since California is a comparative negligence state, even a small percentage of fault assigned to you for an automobile accident could increase your insurance costs. Work with a San Bernardino car accident attorney after a collision to reduce your degree of fault and help prevent an insurance price increase as much as possible.