How Much Does Insurance Go Up After an Accident?

North Dakotans are no strangers to car accidents. According to the North Dakota Safety Council, the state had over 10,400 vehicle accidents in 2023 (the most recent year of statistics), with 106 fatalities. That’s lower than the national average (114), but it means that, for many residents, dealing with an auto accident is more a question of “when” than “if.”

Getting into a car accident is stressful enough. You’re dealing with repairs, medical bills, possibly missed work, and then you get that dreaded letter from your insurance company: your premium is going up.

But how much higher can it actually go? And do your rates always increase, even if the accident wasn’t your fault?

If you’re wondering whether it’s worth filing a claim, or if you’re trying to plan for what’s next, let’s walk through how car insurance works after a crash, why rates increase, and what you can do to protect yourself.

Do insurance rates always go up after an accident?

Not always, but often.

Car insurance is all about risk. When you file a claim, your insurer may see you as a higher-risk driver, especially if the accident was your fault. But even if it wasn’t, your rates can still go up.

Yes, that sounds unfair, and a lot of people feel the same way. But many insurance companies raise premiums based on claim history, not just fault. So, if you’ve been in a few accidents over the past few years, even if you weren’t at fault, you could still see a rate hike.

That said, not every accident triggers an increase. Some insurance companies offer accident forgiveness programs, especially for first-time incidents. Others may only raise your rates if the payout was over a certain amount. It all depends on your policy and provider.

How much will my car insurance go up?

Let’s look at the numbers.

According to national data from Bankrate, the average premium increase after an at-fault accident is around 44%. That could mean hundreds of dollars more or even a rate increase over $1,000 per year, depending on your driving history and location.

Here’s a breakdown of common scenarios:

Type of accident	Average premium increase
At-fault with injury	40–60%
At-fault with property damage	30–50%
Single-car accident	25–45%
Not-at-fault accident	0–15% (depends on insurer)

 

Keep in mind that North Dakota drivers tend to have slightly lower base rates than the national average, but increases can still sting, especially if your policy includes limited forgiveness or if you’ve had prior claims.

Why do rates go up even if you weren’t at fault?

This is where a lot of people get frustrated.

You’d think if someone rear-ended you at a stoplight, your rates wouldn’t budge. But some insurance companies don’t really distinguish between fault and risk. If you’ve been involved in multiple claims (regardless of fault), they may still see you as more likely to file again.

There’s also something called a “not-at-fault surcharge.” Some companies apply it after multiple no-fault claims. Others won’t penalize you at all. That’s why it’s so important to shop around and understand your policy’s fine print.

Here’s a quick rundown of factors insurers consider:

• Your fault level (full, partial, or none)
• Severity of damage or injury
• Claim amount
• Your driving record
• How many previous claims have you filed
• Your location (state laws, local risk factors)

So, yes, it’s possible your rates may rise a little even if the accident wasn’t your fault, but the increase is usually minor or avoidable.

Will the rate increase be more than the cost of repairs?

One of the biggest worries people have is, “If I file this claim, will my premium hike be more than the cost of the repairs?”

In most cases, no, especially if it’s a single claim and you haven’t had issues before.

Let’s say that your insurer covers $5,000 in vehicle repairs. If your premium goes up by $400 per year and the surcharge lasts 3 years, that’s $1,200 extra out-of-pocket. It’s still less than the claim amount.

But if the damage is small (say $1,000) and you can afford to pay out-of-pocket, it might make sense to avoid filing at all. That way, you keep your clean record and your premium steady.

Here’s a rule of thumb:

• If damage is small (e.g., under a few thousand dollars), you might consider not filing unless legally required. In North Dakota, you must report an accident to law enforcement if it results in injury, death, or combined property damage of at least $4,000.
• If injuries are involved, always file. Liability risks are too high.
• If it’s your second or third claim in a few years, talk to your agent first.

Does fault matter in North Dakota?

North Dakota is a no-fault state, but that only applies to your medical expenses.

After an accident, your personal injury protection (PIP) pays for your injuries (up to your policy limit) regardless of who caused the crash. But for vehicle damage, the at-fault party’s insurance is responsible.

So, if you’re found at fault, the other driver may file a claim through your liability coverage, and you’ll likely see a rate increase. If they were at fault, your own property damage claim might still raise your rates slightly, but usually not much unless you’ve had multiple incidents.

How long will the rate hike last?

Most insurers keep an accident on your record for three to five years. During that time, you’ll probably pay more, but how much more depends on your driving habits and whether you stay claim-free afterward.

After the penalty period, your premium should start dropping again.

Here’s how you can potentially speed up the process:

• Take a defensive driving course (some insurers offer discounts)
• Bundle policies (auto + home or renters)
• Increase your deductible (only if you can afford a higher out-of-pocket cost)
• Maintain good credit (yes, that affects your rate too)
• Ask about accident forgiveness for the future

Can you switch providers after an accident?

Yes, and it might help you save.

Just because your current insurer increased your rate doesn’t mean others will do the same. Some companies are more forgiving of first-time accidents or offer better pricing even with a minor claim.

Here’s what to do:

• Get quotes from at least three different insurers.
• Be honest about your accident history.
• Ask specifically how they handle not-at-fault claims.
• Look into usage-based policies if you drive safely and infrequently.

Switching providers after an accident won’t erase your history, but it could give you better pricing or benefits.

Is it worth filing a claim?

It depends on the damage, the injuries, and your driving record.

If someone was hurt or if repairs are more than a few thousand dollars, don’t risk going it alone. File the claim and let your insurer do its job. Even if your premium goes up, it probably won’t be more than what the insurer pays out.

If it’s a minor fender bender and no one’s injured, you might consider paying out-of-pocket, but you’ll need to weigh that against your deductible and your risk tolerance.

And if you’re ever unsure, talk to an attorney. In some accidents, especially where fault isn’t clear or you’re facing a potential lawsuit, legal advice can make a big difference.

Dealing with an accident in North Dakota? We’re here to help

At Larson Law, we’ve helped North Dakotans navigate everything from minor accidents to major injury claims. If you’re unsure whether to file, facing denied insurance coverage, or worried about liability, we’re here to give you clear, honest answers. Don’t let confusion or pressure from your insurer keep you from doing what’s right. Contact us for a free consultation today.