Rachael Brennan has been working in the insurance industry since 2006 when she began working as a licensed insurance representative for 21st Century Insurance, during which time she earned her Property and Casualty license in all 50 states. After several years she expanded her insurance expertise, earning her license in Health and AD&D insurance as well. She has worked for small health insuran...

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Chris Harrigan has an economic degree from Limestone College and an MBA from Clemson University. He previously managed auto insurance claims for Enterprise Rent-A-Car. Currently, he is using his business and insurance expertise to provide insurance data analysis and visualizations to enhance the user experience.

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Reviewed by Chris Harrigan
Former Auto Insurance Claims Manager

UPDATED: Aug 25, 2021

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Key Takeaways

  • On average, car insurance increases by 24% if you have an accident on your driving record
  • USAA, State Farm, and GEICO are known to provide cheaper car insurance rates for people with accidents
  • If you have too many accidents, you’ll need SR-22 certification

The best auto insurance companies for people with accidents vary for each person. If you don’t know where to look, start with the top 10 companies in the car insurance industry.

But what are the best car insurance companies for people with accidents? Don’t worry – we’re here to help.

Our guide explores which companies have affordable car insurance for people with accidents and how to get cheap car insurance after an accident.

After you learn more about the best auto insurance companies for people with accidents, enter your ZIP code in the free online quote tool above to compare multiple companies near you.

Where can I find the cheapest car insurance company for people with accidents?

If you’re shopping for auto insurance, you should start with the best insurance companies in the auto insurance industry.

Here are the top 10 car insurance companies in the United States and their average monthly rates.

Monthly Full Coverage vs. Liability-Only Car Insurance Rates Based on One Accident
CompaniesLiability-Only Car Insurance Rates with One AccidentFull Coverage Car Insurance Rates Based with One Accident
American Family$158$310
Liberty Mutual$264$517
State Farm$144$283
Industry Average$174$342
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USAA, State Farm, GEICO, and Nationwide are the cheapest auto insurance companies for people with accidents.

According to the National Association of Insurance Commissioners (NAIC), liability auto insurance is 51% less than full coverage.

We used NAIC’s data to give you an estimate of how much you could pay for liability car insurance at the best companies in the nation.

Liability coverage is the minimum auto insurance requirement in most states. Full coverage is needed if you’re still making payments on your vehicle.

Can smaller insurance companies provide cheap car insurance for people with accidents?

The short answer is yes. Smaller companies don’t have the same perks as other prominent companies, but companies like North Carolina Farm Bureau, Chubb, Erie Insurance, and Auto-Owners Insurance carry competitive rates, also.

However, many factors determine whether affordable car insurance is available to you.

The most significant factor is your driving record. A bad driving record can increase your rates by at least 20%.

Even your address is a factor. Auto insurance companies can determine your rates based on the city where you live.

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How do accidents affect your driving record?

One accident can drive up your auto insurance rate by 24%. Multiple accidents within a short period can place you in a high-risk pool.

Too many accidents may result in you being required to obtain SR-22 certification, depending on your state of residence.

Your insurance company usually forgives first-time minor accidents. Car accidents that cause a significant amount of property damage or bodily injury go on your driving record.

Accidents last for at least three years on your driving record. Hit-and-run accidents and DUI accidents last for 10 years.

Getting insurance after an accident isn’t as complicated as it seems, but it’s expensive. Switching car insurance after an accident may not be useful.

How do I get car insurance for people with accidents on their driving record?

Getting auto insurance with a bad driving record is possible. You should be upfront about your accident during the quote process.

Car insurance companies can check your insurance history to see if you’ve had any accidents and claims.

We recommend targeting car insurance discounts to cancel out the increase in prices. Continue reading to learn more.

What discounts can lower car insurance rates for people with accidents?

You can negate the 24% increase from accidents on your driving by qualifying for discounts.

Here’s a list of discounts that can bring down expensive auto insurance rates.

  • Anti-Theft Discount – 3% to 25%
  • Distant Student Discount – 3% to 35%
  • Driving Device/App Discount – 10% to 50%
  • Good Student Discount – 3% to 25%
  • Multiple Policies Discount – 10% to 25%
  • Multiple Vehicles Discount – 5% to 25%
  • Newer Vehicle Discount – 10% to 40%

These are only a few examples. But qualifying for a few of these discounts can help you access cheaper car insurance quotes for people with accidents on their driving records.

Why should I shop at the best car insurance companies?

Shopping with the top insurance companies ensures that you get the best coverage at a reasonable price.

Also, the best auto insurance companies are better with claims.

Check out the car insurance company rating summary below to see which companies are best at paying out claims and managing customer policies.

Highest Rated Car Insurance Companies
CompaniesA.M. Best RatingsDirect Premiums Written
(in Billions)
Market Shares
(in Percent)
Loss Ratios
(in Percent)
AllstateA+ (Superior)$22.7 (↑)9.19 (↓)56 (↓)
American FamilyA (Excellent)$4.7 (↑)1.9 (↑)69 (~)
FarmersA (Excellent)$10.5 (↑)4.26 (↓)61 (~)
GEICOA++ (Superior)$33.1 (↑)13.41 (↑)71 (~)
Liberty MutualA (Excellent)$11.8 (↑)4.77 (↓)62 (~)
NationwideA+ (Superior)$6.7 (↓)2.73 (↓)58 (↓)
ProgressiveA+ (Superior)$27.1 (↑)10.97 (↑)62 (~)
State FarmA++ (Superior)$41.9 (↑)17.01 (↓)63 (↓)
TravelersA++ (Superior)$4.7 (↑)1.9 (↑)60 (~)
(Military &
Family Members)
A++ (Superior)$14.5 (↑)5.87 (↑)77 (~)
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A.M. Best is one of the top rating agencies for insurance companies. And, A.M. Best ratings have an international span.

Therefore, the A+ ratings that a company has in Texas will be the same in South Carolina.

Any smaller company working under major companies will share the same A.M. Best rating as the parent company.

The loss ratio explains how much a company pays out per $100. For example, the loss ratio for Liberty Mutual is 62.

That means Liberty Mutual pays out $62 in claims for every $100 they earn from premiums.

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Best Car Insurance Companies for People with Accidents: The Bottom Line

Accidents can drive up your auto insurance rates. If you qualify for several discounts, you can prevent a steep increase in car insurance costs.

Before you buy car insurance for people with accidents, use our free online quote tool to compare multiple companies in your area.