Your rates can still rise even when you're not at fault, depending on your insurer and state

The short answer is no — your insurer should not raise your rates straightforward because you were hit by someone else. But "should not" is not the same as "will not." Some insurers do raise rates after not-at-fault claims, and the reasons vary by company and by state. A few states have laws that explicitly forbid the practice; most do not. Even when your insurer does not raise your rate, you may see increases from other causes — like your own driving record, or a rate adjustment unrelated to the accident.

The distinction between at-fault and not-at-fault matters most when you file a claim against the other driver's insurance. When you file against your own policy (collision or comprehensive coverage), the at-fault status is less relevant to your rate, because you are asking your own insurer to pay. The other driver's insurer, by contrast, has a financial reason to deny or minimize the claim — and your insurer knows this.

Key Takeaways

  • Most major insurers do not raise rates for a single not-at-fault claim, but some do, and state law varies on whether they are allowed to.
  • Your rate can still increase after a not-at-fault accident if your insurer raises rates across your area, changes your risk category, or adjusts for other factors on your driving record.
  • Filing a claim against your own collision coverage (rather than the other driver's liability) may have a larger effect on your rate, even if you are not at fault.
  • Asking your insurer directly about their not-at-fault claim policy before an accident happens gives you a clear answer and a record of what they told you.
  • If your insurer raises your rate after a not-at-fault claim in a state that forbids it, you can file a complaint with your state insurance commissioner.

How insurers treat not-at-fault claims differently from at-fault ones

When you are not at fault, the other driver's insurer is responsible for paying your claim. Your own insurer may still be involved — they may handle the claim on your behalf, or you may file directly with the other insurer. The key difference is that your insurer is not paying out of their own pocket; they are recovering money from the other side.

Because your insurer is not absorbing the loss, they have less financial reason to penalize you with a rate increase. At-fault claims cost your insurer money directly, so they use rate increases to discourage risky behavior and recoup losses. Not-at-fault claims do not have the same effect on your insurer's bottom line, which is why most major carriers — State Farm, Allstate, GEICO, Progressive, and others — do not raise rates for a single not-at-fault accident.

However, "most" is not "all." Some smaller or regional insurers do raise rates after not-at-fault claims, and a few large ones have been known to do so in certain states. The practice is controversial, and some state regulators have begun restricting it.

State laws that limit or forbid rate increases for not-at-fault claims

A handful of states have passed laws that explicitly prevent insurers from raising rates based on not-at-fault accidents. These include California, Maryland, and New York. In these states, if your insurer raises your rate after a not-at-fault claim, it is a violation of state insurance law, and you can file a complaint with your state insurance commissioner.

Most states, however, do not have such a law. In those states, insurers are generally allowed to raise rates after not-at-fault claims, though many choose not to as a matter of business practice. The absence of a law does not mean your insurer will raise your rate — it means they are legally permitted to, and you have less recourse if they do.

You can find out whether your state restricts the practice by contacting your state insurance commissioner's office or checking their website. The National Association of Insurance Commissioners (NAIC) maintains a directory of state insurance departments, which can point you to the right office.

Why your rate might go up even after a not-at-fault accident

Even if your insurer does not penalize you for the not-at-fault claim itself, your rate can still increase for other reasons. The most common is a general rate adjustment in your area or risk category. Insurers regularly raise rates across entire regions or demographic groups to reflect changes in claims costs, inflation, or local accident frequency. This increase has nothing to do with your accident — it would happen whether or not you filed a claim.

A second reason is a change in your driving record or other underwriting factors. If you received a traffic ticket around the time of the accident, or if your insurer discovered a prior violation during the claims process, they may raise your rate based on that new information, not the accident itself.

A third reason is if you filed a claim under your own collision or comprehensive coverage rather than against the other driver's liability insurance. When you use your own coverage, you are asking your insurer to pay, and they may raise your rate even if you are not at fault — because you are still a claims filer. This is especially true if you have a low deductible or file multiple claims in a short period.

The difference between filing against the other driver's insurance and using your own coverage

If the other driver is clearly at fault and has insurance, the best route is usually to file a claim directly against their liability coverage. Their insurer pays for your repairs, and your own insurer is not involved in the payout. This approach protects your rate, because your insurer has no reason to raise it — you did not file a claim against them.

However, this route has a catch: the other insurer may deny or delay the claim, or offer less than you think is fair. If that happens, you can file a claim under your own collision coverage as a backup. But once you do, your insurer is now paying, and they may raise your rate even though you are not at fault — because you are now a claims filer on their books.

Some people file against their own coverage first to avoid dealing with the other insurer. This is faster and simpler, but it costs you more in the long run if your rate goes up. The trade-off is speed and certainty against a potential rate increase.

What to do before an accident: ask your insurer directly

The best time to find out your insurer's policy on not-at-fault claims is before you need to know. Call your agent or insurer's customer service line and ask: "If I am in an accident that is not my fault and I file a claim, will my rate go up?" Write down the date, time, and name of the person you spoke with, and ask them to send you a written confirmation of their answer.

Having this on record protects you in two ways. First, if your rate does go up and your insurer claims they never said they would not raise it, you have documentation. Second, if you are unhappy with the answer, you can shop for a different insurer before an accident happens, rather than after.

If your insurer refuses to answer or gives you a vague response, that is a red flag. A company confident in its not-at-fault policy will tell you clearly. You can also check your insurer's website or policy documents — many now publish their not-at-fault claim policy publicly.

What to do if your rate goes up after a not-at-fault claim

If your insurer raises your rate after a not-at-fault accident, your first step is to ask them why. Request a written explanation of the rate increase and which factors they used to calculate it. They are required to provide this under most state insurance laws.

If they say the increase is due to the not-at-fault claim itself, check whether your state forbids the practice. If it does, file a complaint with your state insurance commissioner. Include the written explanation from your insurer, your policy documents, and a summary of the accident and claim. The commissioner's office will investigate and may order your insurer to reverse the increase or refund the difference.

If your state does not forbid the practice, your options are more limited. You can ask your insurer for a reconsideration, but they are not required to grant it. You can also shop for a new insurer — some competitors may offer you a better rate, especially if you have only one not-at-fault claim on your record. When you shop, tell new insurers about the claim and ask how they would rate you.

Frequently Asked Questions

Can my insurer raise my rate if the other driver's insurance paid for everything?

If the other driver's insurer paid the full claim and your insurer was not involved in the payout, your insurer should have no reason to raise your rate. However, if you filed a claim with your own insurer first (even if they later recovered the money from the other side), some insurers may still count it as a claims event. Ask your insurer whether they distinguish between claims they paid and claims they recovered.

What counts as a not-at-fault claim for rate purposes?

A not-at-fault claim is one where the other driver is found responsible for the accident, either by their insurer's admission or by a police report or court information. If liability is unclear or split, your insurer may treat it differently. Some insurers also do not count claims where you were hit in a parking lot or by an uninsured driver as not-at-fault for rate purposes, even though you were not responsible.

Will a not-at-fault accident show up on my driving record?

An accident itself does not appear on your driving record unless you received a traffic ticket. A not-at-fault accident may appear on your insurance record (which insurers can see when you shop for quotes), but it should not affect your driving record or your ability to get a license renewal. Your insurance record and your driving record are separate.

How long does a not-at-fault claim stay on my record?

Most insurers keep not-at-fault claims on your record for three to five years, though the exact period varies by company and state. After that time, the claim should no longer affect your rate. Some insurers remove not-at-fault claims faster than at-fault ones, which is another reason to ask your insurer's policy upfront.

Can I switch insurers if my rate goes up after a not-at-fault claim?

Yes. You can switch to a new insurer at any time, and you are not required to tell them about a not-at-fault claim if you do not want to — though they will likely find it when they pull your insurance record. Some insurers are more forgiving of not-at-fault claims than others, so shopping around after a rate increase can save you money. Be honest with new insurers about the claim, because lying on an process can give them grounds to cancel your policy later.