How Much Does Insurance Go Up After an Accident for a Teenager?

Last Updated on October 14, 2026

By James Shaffer · Reviewed by Thomas Rockford, insurance industry executive and financial analyst, on October 13, 2026 · How we fact-check

It’s no secret that teenagers pay the most for car insurance. Even when you add a teen to a parent’s policy instead of giving them their own, premiums can still jump dramatically. Once your child turns 18 or older and moves out on their own, those costs can climb even higher.

When a teen driver gets into an accident, things get even more expensive. Teen drivers already pay far more than experienced adults for coverage, so even a “typical” accident-related rate increase can add hundreds or thousands of dollars a year to the bill. Understanding how accidents affect teen car insurance — and what you can do about it — is crucial.

1. Teen drivers already pay much more for car insurance than experienced adults, so any accident can make their premiums jump by hundreds or thousands of dollars per year.
2. For adult drivers, LendingTree’s January 2026 data shows an at-fault accident raising full-coverage rates by about 45% on average, usually for 3–5 years. LendingTree did not price teen drivers, so that figure is not a teen increase; a teen’s dollar increase is usually larger because the starting premium is higher.
3. For minor crashes with no injuries, it can sometimes be cheaper long-term to pay for repairs out of pocket instead of filing a claim, especially if your teen already has tickets or prior incidents. You still have to report the accident to your insurer as your policy requires and follow your state’s crash-reporting rules.
4. If your insurer hikes your rate or drops coverage after a teen accident, shopping around — including high-risk carriers — and focusing on safer driving going forward are the best ways to eventually bring premiums back down.

Why Teens Pay More for Auto Insurance

Car insurance pricing is basically a math problem: insurers look at huge amounts of data to figure out who is most likely to have an accident. Statistically, drivers between 16 and 20 years old are involved in crashes far more often than older, more experienced drivers. Per mile driven, teens 16–19 have a fatal crash rate nearly three times that of drivers 20 and older.

That higher crash risk shows up in the premiums. LendingTree’s January 2026 quotes stop at age 20, where a driver paid an average of $4,112 a year for full coverage, about twice the $2,115 a 30-year-old paid for the same car and coverage. LendingTree did not price drivers 16 to 19, and the age-20 figure is not a stand-in for them; younger teens usually cost more. Male teens tend to pay more than female teens, and the CDC reports that the crash death rate for male drivers ages 16 to 19 was three times that of female drivers the same age in 2020.

There are still a few ways to take the edge off:

• Having your teen drive a car that’s cheap to insure
• Adding them to a parent’s policy instead of giving them their own, when allowed
• Completing a defensive driving course
• Qualifying for good student and safe-driver discounts

Even with discounts, though, teen drivers are expensive to insure. That’s why a single accident can feel like financial disaster.

How an Accident Affects Teen Insurance Rates

A car accident can have a massive impact on your car insurance rates at any age — but for teenagers, the effect is magnified. For the average adult driver, LendingTree’s January 2026 data shows an at-fault accident raises full-coverage rates by 45% on average, or about $1,031 a year, and those higher premiums can stick around for three to five years. LendingTree did not price teen drivers, so these figures are not a measured teen increase.

For teenagers, the percentage increase may be similar, but the dollar amount is much higher because they’re already starting from an expensive baseline. In real life, that can look like:

• A teen on a parent’s policy seeing the family’s premium jump by hundreds or even thousands of dollars per year after an at-fault crash
• A teen on their own policy getting pushed into “high-risk” territory, where fewer insurers are willing to quote and prices are steep
• An accident combined with a ticket (like speeding or texting while driving) stacking penalties and driving rates up even more

Some companies do offer accident forgiveness or minor-incident forgiveness, which may prevent a first small claim from raising your rate. Eligibility often depends on how long you’ve been insured or claim-free, so a newly licensed teen may not qualify. Ask your insurer how its program treats a teen on your policy.

LendingTree priced no teen drivers. The table below shows its January 2026 averages for adult drivers, ages 20 and up, with good credit and otherwise clean records, for a full-coverage policy before and after one at-fault accident that caused at least $2,000 in property damage. None of these rows is a teen increase, and the age-20 row does not stand in for drivers 16 to 19. A teen’s dollar increase is usually larger because the starting premium is higher.

Should You File a Claim After a Minor Teen Accident?

If your teen has a minor accident, it can sometimes be cheaper in the long run to cover the damage out of your own pocket instead of filing an insurance claim.

Paying out of pocket may make sense when:

• The damage is minor and safely drivable
• No one is injured
• The repair cost is close to (or not much more than) your deductible
• Your teen already has tickets or incidents and another claim is likely to spike your rates

In these situations, paying a body shop directly one time can be much cheaper than paying higher premiums for three to five years. Of course, this only works if the other driver is willing to avoid insurance and you document everything clearly. Some drivers will insist on filing a claim no matter what — and that’s their right. Paying out of pocket does not change your duties: most policies require you to notify your insurer of an accident promptly even if you don’t file a claim, and many states require a police or DMV report when a crash causes injury or damage above a set amount. Check your policy and your state’s rules before you decide.

Whenever there’s any doubt about injuries, liability, or serious damage, you should contact your insurer and file a claim. Protecting your teen and yourself legally is more important than saving on premiums.

When Your Teen Is Labeled “Too High Risk”

A serious accident can sometimes affect more than just your rate. If your teen already has traffic violations and then causes a major crash or a total loss, your insurer may decide they’re simply too high-risk and refuse to renew coverage for your teen (or for the entire policy).

When an insurer drops you, finding new coverage gets much harder and more expensive. Other companies will see the accident and prior violations on your teen’s record and may:

• Refuse to quote altogether
• Offer coverage only at extremely high prices
• Require your teen to carry only basic coverage with high deductibles

If every private insurer you contact turns you down, your teen still has options. Every state has a residual market, usually an assigned risk plan, for drivers who can’t find insurance anywhere else. These plans provide at least the minimum required coverage, and some let you add collision and comprehensive at extra cost. The downside is cost: assigned risk programs are designed for the highest-risk drivers, so the premiums are usually very expensive.

Because most states mandate auto insurance, states must make some form of coverage available to everyone — but there’s no requirement that it be cheap. It’s always worth exhausting every private-market option before accepting an assigned risk policy.

Shopping Around After a Teen Accident

If your teen has an accident, don’t assume you’re stuck with whatever rate your current company offers. Different insurers treat teen accidents very differently. One company might double your premium, while another increases it only modestly.

Make a habit of:

• Getting quotes from as many car insurance companies as possible
• Using comparison sites that let you check multiple insurers with one form
• Comparing not just price, but coverage limits, deductibles, and discounts

If you’re under 20 and living on your own, this is even more important. Young drivers shopping solo are already at a disadvantage. If your teen has moved out, see if it’s still possible to get them back on a parent’s policy. In many cases, this is only allowed if they still share the same primary household, so check the rules carefully.

If standard companies won’t take you, look to higher-risk insurers. Companies like SafeAuto (now part of Allstate’s National General, often serviced under the Direct Auto brand) or The General focus on high-risk drivers that other insurers might decline. Their prices may be higher than mainstream companies, but they’re often lower than an assigned risk plan.

My advice is to compare the repair estimate with your deductible plus three years of higher premiums before you file for a small fender bender, and to report the accident to your insurer and the state as required either way. If the crash is bigger or anyone is hurt, file the claim, then get quotes from at least three other insurers at renewal, since companies price a teen’s first accident very differently.

FAQs on Insurance After an Accident for Teens

Helping Your Teen Earn Better Rates Over Time

Once an accident is on your teen’s record, you can’t erase it — but you can start building a better history from that point forward. Over time, a clean record and safe habits will matter more than a single early mistake.

• Encourage your teen to complete a defensive driving course to potentially earn discounts and learn safer habits.
• Set clear rules about distracted driving, speed, and passengers, and stick to them.
• Consider a telematics or “usage-based” program that rewards safe driving with lower rates.
• Revisit your policy at every renewal to see if better options are available as time passes.

Most accidents and violations affect pricing for about three to five years. If your teen can avoid additional tickets and crashes during that time, their rates should gradually come down. Pair that with growing experience and the natural drop in premiums that happens in the early 20s, and the “teen tax” on insurance will eventually fade.

Sources

Checked October 13, 2026

• Centers for Disease Control and Prevention — Risk Factors for Teen Drivers, August 4, 2025
• LendingTree — One At-Fault Accident Can Add Thousands to Drivers’ Insurance Costs
• AIPSO — About AIPSO
• Insurance Panda — How to Get Cheap Assigned Risk Auto Insurance, October 7, 2026