Not-At-Fault Accident: Will My Rate Go Up?

The myth that costs drivers $400-$1,100/year

The common belief: "If I'm not at fault, my insurance won't go up." This is partly true. But it's also partly false — and the falsehood costs drivers an extra $400-$1,100/year at renewal.

In 34 states, insurance regulators prohibit rate increases following a not-at-fault accident. In the remaining 16 states + DC, carriers CAN raise your rate even when you're 0% liable, citing "accident frequency" as a risk indicator.

This guide covers which states protect you, which don't, the 4 carriers who explicitly won't raise rates regardless of state, and the 3 steps to take immediately after a not-at-fault accident to protect your premium.

States that prohibit rate increases (34 + DC)

Most states have either statutory or regulatory prohibition on rate increases following a not-at-fault accident:

Statutory protection (no rate increase by law): California, Connecticut, Delaware, DC, Idaho, Illinois, Iowa, Kentucky, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Montana, Nebraska, New Hampshire, New Jersey, New York, North Carolina, North Dakota, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming

Regulatory protection (no rate increase by regulation): Indiana, Mississippi, Nevada

In these states, even if you're rear-ended at a stoplight, your rate cannot increase based on that accident. Period.

States where carriers CAN raise rates (14 + variants)

These states allow carriers discretion in rate-setting following not-at-fault accidents:

Alabama, Alaska, Arizona, Arkansas, Florida, Georgia, Hawaii, Kansas, Louisiana, Maine, New Mexico, Ohio, South Dakota

In these states, the rate increase is typically 10-30% at next renewal. The carrier's logic: "Accident frequency in your area correlates with future claim probability. We're rating future risk, not punishing past behavior."

The 4 carriers who won't raise rates regardless of state

A handful of carriers have explicit "no surcharge for not-at-fault accidents" policies, applied uniformly across all states:

1. USAA — Members get the protection regardless of state
2. Erie Insurance — All policyholders, all states
3. Nationwide — Through their accident forgiveness rider (typically free after 3 years)
4. Allstate — Through Drivewise / accident forgiveness

Note: this differs from the carrier's standard policy. If you live in one of the 14 "raise-allowed" states, choosing one of these 4 carriers (or buying an accident forgiveness rider from your current carrier) is the best path.

What counts as "not at fault"

Carriers use the police report's fault determination, supplemented by their own investigation. The standard threshold:

• 0% at fault — definitely not-at-fault. Protected in 34 states.
• 1-49% at fault — partial fault. Most carriers treat as a partial at-fault for rating purposes.
• 50%+ at fault — at-fault for rating. Rate increase typical regardless of state.

Some carriers use the "primary responsibility" standard instead of percentage. If you were 25% at fault but the other driver was 75%, you're "secondary" — protected as not-at-fault in some states.

The 3 steps to take immediately after a not-at-fault accident

Step 1 — Get the police report

Demand a police response, even for minor accidents. The police report's fault determination is the gold standard. Without it, the carrier reverts to interpreting the loss as "no determination" — which usually means partial fault for rating purposes.

Step 2 — File the claim with the AT-FAULT party's insurer

If the other driver is at fault, file a third-party claim against THEIR insurer. Your insurer doesn't pay; your file doesn't get touched. Most importantly: the loss doesn't show up on your CLUE (Comprehensive Loss Underwriting Exchange) report.

Filing through your own carrier (subrogated to recover from the other carrier later) means the loss DOES land on your CLUE report — which IS used by some carriers for renewal rating.

Step 3 — Check your CLUE report 30 days post-claim

Get your free annual CLUE report (LexisNexis). Verify the loss is recorded as "0% liability" or "not at fault." If it shows partial fault when you weren't, dispute via LexisNexis.

The hidden trap: "you weren't at fault but you were near it"

Even in protected states, carriers can rate up based on:

1. Frequency — 3 claims in 3 years (any fault) often triggers an underwriting review and rate increase
2. Location — high-claim areas (your zip code) drive base rates higher regardless of your individual record
3. Vehicle damage above $X — some carriers rate up if vehicle damage exceeds a threshold regardless of fault

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

1. Verify the state — confirm protection applies (refer back to the list above)
2. Demand a written explanation — under fair-rating laws, carriers must explain rate changes
3. File a state insurance department complaint — most resolve in your favor
4. Shop the market — switch carriers; most won't apply your previous carrier's not-at-fault accident at the new policy

FAQs

Does a not-at-fault accident affect my Comprehensive Loss Underwriting Exchange (CLUE) report?

Yes — but the report shows fault percentage. Most carriers don't use 0% fault for rating in protected states. Some do for renewal underwriting.

Will accident forgiveness protect me from a not-at-fault accident?

Accident forgiveness specifically targets AT-FAULT accidents. Not-at-fault accidents don't trigger forgiveness — the protection isn't needed for them in 34 states.

If the other driver is uninsured, am I still considered not at fault?

Yes. Fault determination is separate from collectibility. You're not at fault even if you have to use your own uninsured motorist coverage.

Will my insurance company drop me after a not-at-fault accident?

Extremely rare. The carrier might non-renew if you have 3+ claims (any fault) in 3 years. Single not-at-fault is essentially never a non-renewal trigger.