At-Fault Accident: What it Means & How it Affects Insurance Rates in 2025

An at-fault accident occurs when you are legally determined to be responsible for causing a collision. Premiums often rise 20%–50% after an at-fault accident, with surcharges lasting three to five years, depending on your state and insurer.

While rates typically increase across the board, USAA offers the lowest average minimum coverage at $32 per month for eligible drivers. Check out more insights about the USAA insurance review.

Knowing how these accidents are determined and how they affect your coverage can help you take steps to minimize costs. Enter your ZIP code to compare quotes instantly and find the cheapest insurance available.

At-Fault Accidents Defined

When a driver is held legally responsible for causing a crash, it’s called an at-fault accident. This decision is based on police reports, your insurer’s investigation, and the laws in your state.

Being at fault means your insurance will likely pay for the other driver’s damages through your liability coverage, and in some cases, your own repairs if you have collision coverage. The most common at-fault accident examples are drivers running stop signs and red lights or not yielding the right of way.

If the accident involves a serious violation like DUI or reckless driving, you may be required to file an SR-22 insurance form to prove you have the proper insurance coverage.

If you’re found at fault in a car accident, your premiums usually go up by 20%–50%, and the increase can last for three to five years, depending on your insurer and state. The surcharge is typically higher for major accidents involving severe damage or injuries. Most of the time, the increase affects your liability auto insurance coverage, but collision coverage can also be impacted.

At-Fault Accident Insurance Rates

State Farm has the smallest increase at only 21.3%, going from $47 per month for minimum coverage to $57. USAA stays the cheapest overall, rising from $32 to $42 per month, but it’s only for military members and their families.

Company	Before Accident	After Accident	% Increase
	$87	$124	42.5%
	$62	$94	51.6%
	$76	$109	43.4%
	$43	$71	65.1%
	$96	$129	34.4%
	$63	$88	39.7%
	$50	$98	96.0%
	$47	$57	21.3%
	$53	$76	43.4%
	$32	$42	31.3%

Nationwide and Liberty Mutual also keep their increases under 40%, which is lower than many others. On the other hand, Progressive and Geico see the biggest jumps, with Progressive’s rates almost doubling and Geico’s going up by more than 65%.

At-fault accident points on your license will raise your rates higher than a collision caused by weather or animals, essentially making you a high-risk driver. High-risk auto insurance rates can differ greatly between providers, and most companies will drop coverage if you have too many at-fault accidents, making it essential to shop around.

Read More: Cheap Auto Insurance for High-Risk Drivers

How At-Fault Accidents Impact Costs

Your monthly premiums are directly related to the number of accidents in your area. Traffic accidents have been steadily increasing since 2020, with nearly 800,000 more serious accidents occurring between 2023 and 2024. While property damage is more common, bodily injury claims are much more expensive, which increases insurance costs for all drivers.

In at-fault states, drivers who cause an accident are responsible for covering the other party’s injuries, but having personal injury protection (PIP) or medical payments coverage (MedPay) can help cover your own medical bills so you aren’t paying out-of-pocket for everyone.

PIP is more common in no-fault states, but is available in some at-fault states. It provides benefits for medical expenses, lost wages, and even essential services, regardless of fault. MedPay is a simpler option that covers medical costs but doesn’t pay for lost income. Adding these coverages will raise your rates, so compare quotes online to get the best price.

Understanding At-Fault vs. No-Fault Auto Insurance

All states follow different systems for deciding who pays after a traffic accident. Most states use an at-fault system, where the driver responsible for the crash must cover the other party’s damages, typically through liability insurance.

Some states follow a no-fault system. No-fault accident examples include incidents where each driver’s own insurance pays for their medical expenses, no matter who ran the red light.

A few states, like New Jersey and Pennsylvania, use a choice no-fault system, allowing drivers to choose between at-fault or no-fault rules when buying coverage (Learn More: Best Auto Insurance Companies in PA).

In at-fault states, liability insurance is essential because it pays for the other driver’s injuries and property damage if you cause an accident. However, liability does not cover your own car repairs, so you will have to carry extra coverage to pay for your medical bills and vehicle repairs.

Drivers who want more protection often choose full coverage, which includes liability, collision, and comprehensive auto insurance. Understanding these differences helps ensure you have the right level of insurance for your state’s rules.

Investigating At-Fault Accidents

Figuring out who is responsible after a car accident is an important step in the claims process because it impacts who pays for damages and how insurance rates are affected.

Fault is determined by a mix of evidence, official reports, and state laws, and you may need to hire an at-fault accident attorney to help you navigate local laws.

• Police Reports: Officers document details at the scene, including statements, evidence, and citations.
• State Laws: Rules for right-of-way, speed limits, and other traffic laws guide fault decisions.
• Insurance Investigation: Adjusters review damage, photos, witness statements, and accident reconstructions.
• Type of Accident: Certain collisions, like rear-end crashes, often have clear fault patterns.
• Comparative or Contributory Negligence: In some states, fault can be shared, affecting how much each driver pays.

Learning how to get multiple auto insurance quotes can help you find an insurance company that keeps costs down after a crash. See how much you could save on coverage by entering your ZIP code into our free quote comparison tool.