Do car accidents where you live affect car insurance rates?
Car accidents where you live affect car insurance rates, but premiums only go up if your personal demographics and vehicle make and model match the car accident statistics in your area. You can still get cheap car insurance by maintaining a good driving record and avoiding filing claims.
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Joel Ohman
Founder & CFP®
Joel Ohman is the CEO of a private equity backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He has an MBA from the University of South Florida. Jo...
Founder & CFP®
UPDATED: Sep 7, 2023
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UPDATED: Sep 7, 2023
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident car insurance decisions. Comparison shopping should be easy. We are not affiliated with any one car insurance company and cannot guarantee quotes from any single company.
Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from top car companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
- Where you live and the types of accidents that occur in your area will influence your car insurance costs
- Take time to check reports on car accidents in any area to which you are considering moving
- Car insurance companies do offer discounts, so check with your agent to see which discounts you qualify for
Car accident statistics in your state could affect how much you pay for your car insurance, even minor accidents increase car insurance rates.
Accident statistics, car insurance rates, and your driving record all go hand-in-hand when determining just how much you will pay for your auto insurance. Even if you have never had an accident but live in a high-risk area, your rates will be adversely affected. Conversely, if you live in a low-risk area, you could pay less for car insurance.
Keep reading to find out how car accidents where you live affect car insurance rates. This guide compares car insurance rates by city and you can search for free car insurance quotes by ZIP code with our free tool above.
Why Car Accidents Where You Live Affect Car Insurance Rates
Unfortunately, you aren’t going to be able to find the same car accident statistics the insurance companies use. Car insurance companies have access to claims information that you don’t.
You see, there is a national claims database that only insurance companies, insurance brokers, and licensed agents are allowed to access.
Real estate agents can request this information from the insurance companies in order to provide an accurate description of a home.
The good news is that you don’t have to have access to this database to get a good idea of what types of accidents occur in your area.
There are a couple of websites that offer statistics on auto accidents for your area.
To start with, you should visit your state’s Department of Insurance website. In many cases, you can find an annual report on accidents for your state.
A good report will include information on every county; a great report will provide information with just a zip code, but it is unusual to find a report with such specific detail.
Also, you will find that these types of reports are broken down by type of accident, including how many were caused by DUI driving, teen drivers, commercial vehicles, and more. Some reports offer information on things like how many accidents were rear-end, side swipes, or hit-and-run.
If your Department of Insurance doesn’t offer this report, visit your local DMV or State Highway Patrol website. If you can’t find this information on any of these sites, send a letter of inquiry.
Every state collects this information, but it is possible that they haven’t posted them online and only provide the information upon request.
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Car Accident Statistics That Affect Car Insurance Rates
Fortunately, not every negative statistic will affect your car insurance.
For example, statistics regarding teen drivers only affect policies that include a teen driver. If you don’t have a teen in your home, and there is a high rate of teen accidents in your area, you probably won’t be affected by this statistics.
Also, you won’t be affected by statistics regarding certain car types if you don’t own that type of vehicle.
Certain sports cars, for instance, are in more accidents than other types of vehicles.
Even if there is a high incident of this in your area, it won’t affect your rates unless you choose to purchase that particular sports car.
Doing a car insurance comparison between several car insurance companies will ensure that you always get the best rates regardless of the accident statistics for your area.
Car Insurance Discounts to Get Lower Car Insurance Rates
The great news is that you can take advantage of many of the car insurance discounts that companies offer if you live in an area that has bad accident statics.
Car insurance companies understand that if they charge too much, they are going to lose customers, so they will help you to negate some of your costs if you are a good driver.
In most cases, you will have to have a clean driving record for three years to qualify for good driver discounts, but it is well worth it considering you could see significant savings.
Case Studies: Do car accidents where you live affect car insurance rates?
Case Study 1: High Accident Rate Area
John lived in an area with a high accident rate. Due to the increased risk associated with the location, insurance rates in his area were generally higher compared to other regions. Despite having a clean driving record and a good credit score, John experienced higher insurance premiums due to the accident statistics in his area.
Case Study 2: Low Accident Rate Area
Emily resided in a low accident rate area. The decreased risk of accidents in her location positively influenced her car insurance rates. Even with an average driving record and credit score, Emily enjoyed lower premiums compared to individuals living in high-risk areas. The favorable accident statistics in her area allowed her to secure more affordable coverage, providing financial savings in the long run.
Case Study 3: Personal Driving Record
Michael lived in an area with an average accident rate, but his personal driving record was less than stellar. Despite the relatively favorable statistics in his area, Michael’s insurance rates were affected by his own driving history. Previous at-fault accidents and traffic violations resulted in higher premiums for him, highlighting the importance of maintaining a clean driving record regardless of the location’s accident statistics.
Frequently Asked Questions
How does where you live affect car insurance?
The car accident statistics where you live and number of uninsured drivers in your city can increase your car insurance rates since your risk of filing a claim is higher.
Do car accidents where you live affect car insurance rates?
Yes, car accidents in your area can affect car insurance rates. Insurance companies consider various factors when determining premiums, and the frequency and severity of accidents in your location is one such factor. Higher accident rates in your area can lead to increased insurance rates for all drivers in that location.
How do insurance companies determine the impact of car accidents on insurance rates?
Insurance companies typically analyze accident data for a specific geographic area to assess the risk level associated with that location. Factors such as the frequency, severity, and types of accidents are considered when determining the impact on insurance rates.
Are all car accidents treated equally in terms of their impact on insurance rates?
No, not all car accidents are treated equally. Insurance companies typically consider the severity of the accidents and the degree of fault assigned to the drivers involved. At-fault accidents generally have a greater impact on insurance rates compared to not-at-fault accidents.
How long do car accidents affect car insurance rates?
The duration for which car accidents impact insurance rates varies among insurance providers. In general, accidents can affect insurance rates for a few years, typically three to five years, depending on the severity and the insurer’s specific policies.
Can car insurance rates increase if I’m involved in a car accident, even if it’s not my fault?
Depending on your insurance provider and their policies, your rates may or may not increase if you’re involved in a car accident that is not your fault. Some insurance companies offer accident forgiveness programs that prevent rates from increasing for not-at-fault accidents, while others may consider the overall risk associated with the location and adjust rates accordingly.
Will my car insurance rates increase if I file a claim for a car accident?
Filing a claim for a car accident can potentially lead to an increase in car insurance rates, especially if you are found at fault. Insurance companies consider your claims history and the frequency of claims when determining your premiums. However, each insurance provider may have different policies regarding rate increases following a claim, so it’s advisable to check with your insurer for specific details.
Can defensive driving courses help reduce the impact of car accidents on insurance rates?
In some cases, completing a defensive driving course can help mitigate the impact of car accidents on insurance rates. Certain insurance providers offer discounts to drivers who have completed approved defensive driving courses, as it demonstrates a commitment to safe driving practices. However, the availability and extent of such discounts may vary among insurance companies.
Free Car Insurance Comparison
Enter your ZIP code below to view companies that have cheap car insurance rates.
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Joel Ohman
Founder & CFP®
Joel Ohman is the CEO of a private equity backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He has an MBA from the University of South Florida. Jo...
Founder & CFP®
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.