Will my insurance go up if I'm not at fault State Farm?

Editorial team Published on

State Farm generally does not increase your rates after a true not-at-fault (no-fault) accident, according to industry data from organizations like the Consumer Federation of America.

Factors That Can Still Affect Your Cost

  • State Laws: Some states (like California and Oklahoma) legally prohibit insurance companies from raising your rates if you are not at fault.
  • Loss of Discounts: Even if your base rate doesn't go up, filing a claim might cause you to lose an accident-free or claims-free discount, which can raise your overall price at renewal.
  • Overall Rate Increases: State Farm may adjust rates broadly across a specific ZIP code or state due to rising repair and medical costs, which is unrelated to your personal accident.
  • Multiple Claims: Having multiple claims in a short window—even if not at fault—can sometimes change your risk tier during an underwriting review.

You can review your specific policy details or check potential changes by reading the State Farm Claims Guide.

Should I file a claim with my insurance if I'm not at fault State Farm?

Yes, you should notify your own insurance company (State Farm) after an accident even if you are not at fault, though you can choose whether to file a formal repair claim through them or the other driver's insurer.

Your Two Main Choices for Filing a Claim

  • Third-Party Claim (Other Driver’s Insurance):
    • You file directly with the at-fault driver's insurance company.
    • Pros: You do not have to pay an upfront deductible.
    • Cons: The other insurer must contact their driver to verify details before paying, which can delay the process. If they cannot reach their driver or dispute fault, you may face roadblocks.
  • First-Party Claim (Your State Farm Insurance):
    • You file through your own State Farm Auto Claims policy.
    • Pros: Repairs and communication often move faster because you are already a customer, and State Farm will try to recover your deductible later through a process called subrogation (getting money back from the at-fault party).
    • Cons: You must pay your collision coverage deductible upfront when you drop your car off at the repair shop.

Why You Should Still Notify State Farm

  • Contract Rules: Most auto insurance policies require you to promptly report any accident, regardless of who caused it, to protect your coverage.
  • Protection if Issues Arise: If the other driver's insurance denies responsibility, stalls, or turns out to have inadequate coverage, having the claim already logged with State Farm ensures your collision or uninsured motorist coverage is ready to step in.

Does your insurance go up after a claim that is not your fault State Farm?

Your State Farm insurance rates generally should not increase directly from a surcharge if an accident is truly not your fault, but your overall cost can still change upon renewal.

Why Your Bill Might Still Change

  • Loss of Discounts: Filing a claim may cause you to lose a claims-free or accident-free discount, which raises your total price.
  • State Regulations: Rules vary by state. Some state laws completely forbid insurers from raising rates for a not-at-fault accident, while others allow broader underwriting reviews.
  • General Rate Adjustments: State Farm can adjust rates due to broader factors like inflation, rising repair costs, or localized claim trends in your area, independent of your specific accident.

You can read more about how claims are handled on the State Farm Claims Guide.

Does my insurance go up even if it wasn't my fault?

Yes, your car insurance rates can still go up even if an accident was not your fault.

Insurance companies base their prices on overall risk rather than just who caused a crash. When you file a claim, insurers see you as a higher statistical risk for future claims.

Why Rates Increase After a Not-at-Fault Accident

  • Risk Assessment: Insurers believe that drivers involved in any collision—regardless of fault—have a higher probability of being in another one.
  • Claim History: Multiple claims on your record, even if they are not your fault, signal a higher risk profile to the insurance company.
  • Uninsured Motorists: If the other driver did not have insurance, your own Progressive or other provider may have to pay out of your uninsured motorist or collision coverage, which can trigger a rate increase.

When Rates Won't Increase

  • State Laws: Certain states (such as California and Oklahoma) explicitly make it illegal or forbid insurance companies from raising your rates for a not-at-fault accident.
  • Accident Forgiveness: If you purchased an accident forgiveness add-on before the crash, your insurer may waive the first rate hike.
  • General Market Trends: Sometimes rates go up independently of your driving record due to inflation, higher repair costs, or general risk trends in your ZIP code.

Does your insurance increase after a not at fault claim?

Yes, your car insurance rates can still go up after a claim that is not your fault, depending on your state and insurance company.

Why Rates Can Increase

  • Risk assessment: Insurers look at any claim as a sign that you might be a higher risk for future claims, even if you did not cause the crash.
  • Payout involvement: If your own insurance company has to pay out money for your repairs or medical bills (and then try to get it back from the other driver later), your rates may go up.
  • Loss of discounts: Filing a claim can cause you to lose a "claims-free" or "accident-free" discount, which makes your overall price go up.

State Laws and Rules

  • State protections: Some states do not allow companies to raise your rates if an accident is not your fault. For example, California and Oklahoma have laws that protect drivers from rate hikes in these situations.
  • Company policies: Different insurance companies have different rules. Some companies, like State Farm, choose not to raise rates for drivers who are not at fault, while others might raise them by a small percentage.

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Is State Farm good about paying out claims?

State Farm has high financial strength to pay claims, but customer experiences with the actual payout and claims process are mixed.

Financial Ability vs. Customer Experience

  • Financial Stability: State Farm holds strong financial ratings, such as an A++ or A+ from AM Best, meaning the company has the financial reserves required to pay out large volumes of claims.
  • Industry Scores: In official surveys like J.D. Power’s claims satisfaction studies, State Farm scores above average (891 out of 1,000).
  • Customer Complaints: Consumer platforms like Trustpilot show lower ratings, with many customers reporting low initial settlement offers, delayed processing, or denied claims for property and auto damage.

Common Issues with Payouts

  • Low Initial Offers: State Farm often uses standardized estimation software that can undervalue repairs, medical expenses, or pain and suffering, sometimes requiring negotiation or legal action to increase payouts.
  • Stricter Approvals: Recent legal scrutiny and regulatory investigations (such as actions in California and lawsuits regarding roof replacement approvals) highlight challenges with delayed or lowered payouts on property claims.
  • Adjuster Variance: Many policyholders note that the quality and speed of your payout heavily depend on the specific claims adjuster assigned to your case rather than a uniform company policy.

Is it better to have a $500 deductible or $1000?

A $1,000 deductible is better if you want lower monthly payments and have enough savings to pay the higher amount during a claim, while a $500 deductible is better if you prefer lower out-of-pocket costs when an accident happens.

Comparison of Deductibles

  • $500 Deductible
    • Monthly premium: Higher.
    • Out-of-pocket cost during a claim: Lower ($500).
    • Best for: Drivers with limited emergency savings, those who feel uneasy paying a large cash sum unexpectedly, or people with higher driving risk.
  • $1,000 Deductible
    • Monthly premium: Lower.
    • Out-of-pocket cost during a claim: Higher ($1,000).
    • Best for: Drivers with a strong emergency fund, safe drivers who rarely file claims, and those who want to save money on yearly insurance costs.

How to Decide

Read guidance from Tapley Agency or review InsuraMatch to weigh your personal budget. Ask yourself these questions:

  • Can you afford $1,000 right now? Never pick a $1,000 deductible if paying it on short notice would cause financial hardship.
  • What is your car worth? If your car is older and only worth a few thousand dollars, a high deductible might not make financial sense.
  • How often do you drive? If you have a clean record and rarely drive, a $1,000 deductible helps you keep more cash in your pocket.

How many accidents before State Farm drops you?

State Farm typically considers non-renewing or dropping a policy if you have three or more claims or at-fault accidents within a three-year period.

General Thresholds

  • Claim Frequency: Filing three claims—whether for at-fault accidents, comprehensive losses, or even minor incidents—greatly increases the risk of non-renewal.
  • Lookback Period: Underwriters usually review your driving history and Comprehensive Loss Underwriting Exchange (C.L.U.E.) report for the past 3 to 5 years.
  • Severity: A single severe accident involving major injuries, high property damage, or major violations like a DUI can trigger a drop or mandatory high-risk reclassification faster than minor fender-benders.

Contributing Factors

  • State Regulations: Insurance rules and cancellation laws vary significantly by state. Some states restrict an insurer's ability to drop a driver after a specific number of non-at-fault incidents, while others allow non-renewal after three claims regardless of fault.
  • Overall History: Long-term policyholders with a clean history spanning decades may be given more leeway, whereas newer customers with clustered claims face a higher chance of cancellation.

What not to tell your insurance company?

Never admit fault, apologize, or downplay your injuries when speaking to an insurance adjuster after an accident.

Statements to Avoid

  • "I'm sorry" or "It was my fault": Insurers treat apologies as a legal admission of liability, which can reduce or eliminate your compensation.
  • "I'm fine" or "I'm not hurt": Adrenaline can mask severe conditions like internal bleeding or traumatic brain injuries that appear days later. Early statements that you are fine are used to deny later claims.
  • Guesses or speculation: Never estimate speeds, distances, or timing. Stick strictly to objective facts you know for certain.
  • Recorded statements: You can decline requests for a recorded interview until you consult legal counsel, as adjusters use these recordings to trap you in inconsistencies.

Safe Communication Guidelines

  • Provide only basic facts like the date, time, location, and your contact or policy details.
  • Refer the adjuster to a qualified Car Accident Lawyer to manage further discussions and protect your rights.

Why does State Farm have such a bad reputation?

State Farm faces criticism and negative public perception primarily due to widespread complaints about its claims-handling practices, high pricing, and historical controversies.

Claims Handling and Payout Disputes

  • Denials and Delays: Many policyholders report that the company delays, undervalues, or outright denies legitimate claims for auto and property damage.
  • The "3 Ds" Approach: Consumer advocacy groups like the American Association for Justice have historically ranked State Farm poorly, accusing it of a "denying, delaying, and defending" strategy designed to protect corporate profits over payouts.
  • Catastrophic Event Backlash: The company faced intense public scrutiny and lawsuits following major disasters like Hurricane Katrina, where critics and whistleblowers accused the insurer of altering damage reports to reduce payout amounts.

Pricing and Policy Changes

  • Higher Premiums: Customers frequently note that State Farm’s rates can be significantly higher than competitors, even for long-term loyal clients who have never filed a claim.
  • Policy Non-Renewals: In areas prone to natural disasters or high risk, State Farm has faced criticism for abruptly dropping long-term clients or refusing to renew coverage based on algorithmic risk assessments.

Internal and Legal Controversies

  • Lawsuits and Allegations: The company has faced various lawsuits over the years alleging bad-faith claim denials and, in some cases, discriminatory practices.
  • Adjuster Work Environment: Reports from former internal and independent adjusters describe heavy caseloads—sometimes managing over 100 claims at once—which can lead to burnout, errors, and a frustrating experience for the customer.

Despite these criticisms, State Farm remains the largest property-casualty insurer in the United States, with millions of policyholders who receive standard service without major issue. Discontent tends to peak during major weather events and disputed high-dollar claims.