Why do insurance rates go up after an accident? Auto Insurance providers don’t raise rates to punish you. Instead, insurers adjust your rates after an auto accident to reflect the new data you gave them by getting into an accident you are perceived to be a riskier driver. Having an accident or a moving violation on your driving record is a red flag to insurers on your future driving habits which can cause your auto rate to increase. If you’re riskier, providers pass that risk on to you in the form of higher premiums. This increase is at snapshot in time and will be reduced over the next few years if no additional accidents or tickets are caused by you. If you have seen your policy rates increase after an accident, talk to your local insurance agent and see what additional discounts or changes to any coverages that you can make to help minimize the increase for current time. There may also be other products you can change to for time. When setting up your policy with your insurance agent ask about getting accident forgiveness on your policy to help in the event of an auto accident.