How Much Does a Car Accident Cost?

The average cost of a car accident can range from around $5,000 to $60,000 depending on the severity of the accident, if there were any injuries and if you can be held liable for causing it. The cost can climb higher, especially if the accident results in a disablement or somebody dying. In addition, filing a claim after a car accident can cause your insurance premium to go up when you renew your policy.

With expenses from necessary repairs, injuries, temporary transportation and more, it’s critical to ensure you get the right amount of coverage to protect you in the event of an accident. Keep reading to learn about different types of accidents, how frequently they occur and their potential costs.

What Is the Average Cost of a Car Accident?

Based on 2022 claims data from the Insurance Information Institute, the cost of an accident that you suffered no injuries from can range from $5,313 to $35,516. If you filed a collision claim to fix damages to only your car, your average claim payout would be $5,992. If you had to file a liability claim because you were the at-fault driver, the average payout is $5,313 for damages to the other person’s property and a whopping $24,211 average payout to cover their injuries.^[1]

If severe injuries are involved, costs can escalate significantly. For example, causing a car accident that results in a disabling injury could lead to over $100,000 in liability costs, and if there's a fatality, costs could exceed $1 million. Additionally, if you get injured, your own medical bills could mirror the bodily injury liability claim costs, potentially amounting to $25,000 or more.^[1][2]

How Much Is a Car Accident Without Insurance?

If you’re at fault for an accident without insurance, you’ll have to pay for all damages out of pocket. Other drivers involved can also sue you, resulting in potential legal fees or court-required payments to the other party. Almost every state requires a minimum level of car insurance to drive legally so getting caught driving without insurance could result in fines, jail time and lost wages.

Keep in mind that even if your insurance covers car accidents, your coverage limits and deductible amount can still require you to pay out of pocket for some expenses. For example, if you choose a $2,000 deductible and get into an accident worth $1,500 in damages, it wouldn’t surpass your deductible, leaving you responsible for covering the entirety of the costs.

If you get in an accident with a severe injury or fatality, you may be held responsible for covering any costs above your liability coverage limits. For example, if you only get the minimum bodily injury liability coverage per person in California, $15,000, but the total costs of an accident are $20,000, you may be left paying the $5,000 difference out of pocket.^[3]

What Kind of Expenses Could Result From a Car Accident?

Car accidents can greatly impact your finances, including car repair costs, injuries and other factors. Here’s a quick breakdown of the expenses that can come after a car accident.

Car Repairs

The cost to repair your vehicle after a car accident can range from under $100 to thousands of dollars depending on what was damaged and its severity. For example, repairs for minor damages to a bumper can start at $300 but heavy damages to your suspension can cost up to $5,000. Below are some cost ranges for fixing certain parts of your car.^[4]

Consider getting collision insurance to help cover the costs of your car repairs after an accident.

Medical Treatment

Diagnosing and treating a broken bone can start as high as $2,500.^[5] If you need to undergo physical therapy following an accident, then you can expect to pay $20 to $150 for each session.^[6] The costs can climb higher depending on the severity of your injury, especially if you sustain a permanent or long-term disability. You may want to consider medical payments coverage or personal injury protection (PIP) coverage if it’s not already required in your state, as this can help with the costs of medical bills.

Lost Wages

If a severe accident renders you unable to work for a week or more, you could be losing out on a considerable chunk of your earnings. For example, someone who makes $52,000 a year may miss out on $1,000 for missing just a week of work if they cannot utilize paid time off or sick pay.

Depending on your state, if you were the victim in a car accident and are unable to work due to your injuries, you can potentially file a claim with the other driver's insurance company to help cover your lost wages. If you have PIP in your auto policy, then your own carrier can cover some of your lost wages up to the coverage limits.

Towing Services

If your car is undrivable after a car accident, then you will have to arrange for towing services to the nearest repair shop, which can cost $109 on average.^[7] However, rates can vary based on the vehicle’s size, time of day and other factors, with rates ranging from $2.50 to $7.00. So if you are on a long-distance road trip and the nearest repair shop is 30 miles away, you may be looking at a $210 towing bill. Fortunately, if you have roadside assistance, you can get some of your towing mileage expenses covered.

Temporary Transportation

If your car is totaled in an accident or is rendered undrivable, you may have to pay to take public transit, taxis or ride-sharing services like Uber and Lyft until you get a new car or your current one is repaired. Renting a replacement car can also get expensive, costing $159 per day on average.^[8]

Taking public transportation often results in less time, which could indirectly impact your finances and general well-being. For example, in cities, public transportation increases commute times by 140% to 260% on average.^[9] The additional stress and shifting schedule of living around public transit, if you’re not accustomed to it, may cut into your ability to perform at work and your time to dedicate to any side jobs.

Some insurance policies may offer loss of use or rental reimbursement coverage as an optional rider. This coverage can help cover expenses like public transportation fares or rental costs for a replacement vehicle while your current car is being repaired or replaced up to your coverage limit, but it may depend on your policy and whether you were at fault for the accident.

Increased Car Insurance Premiums

Premiums can increase by roughly 46% on average for at-fault accidents but they can still increase even if you were 0% at fault.^[10] As rate increases can potentially impact you for several years before your driving record is cleared, this could result in thousands of dollars in increased costs.

Some insurers may offer accident forgiveness coverage as optional coverage, which can waive the impact of rate increases after a single at-fault accident.

What Are the Most Common Causes of Car Accidents?

Factors that reduce your reaction time and slow your perception, such as the consumption of alcohol or lack of sleep, can prevent you from driving properly and are one of the largest causes of car crashes, many of them deadly. For instance, drunk driving was associated with nearly 32% of all traffic fatalities.^[11] Here’s a quick breakdown of common car accident causes that you should avoid whenever you get behind the wheel:

• Distracted driving
• Drunk driving
• Driving while fatigued
• Speeding
• Weather conditions
• Lack of experience
• Defective car parts

What Do I Need To Do After a Car Accident?

If you’re in an accident, here are the steps you’ll want to follow to keep yourself and others safe and ensure you’re prepared for a potential claim:

1. Check for injuries and damages: Always stop after an accident and check yourself, your passenger and anyone else involved for injuries.
2. Contact the police: Notify the police immediately if there’s an injury or fatality and avoid moving any vehicles or injured persons until emergency services arrive unless they’re in immediate danger, such as from a car fire.
3. Get to safety: Accidents may leave you and your vehicle blocking traffic, which could result in additional collisions. If there are no major injuries and you can move your vehicle safely, try to drive it to a place that won’t impede traffic flow.
4. Exchange information: You should exchange information with the other driver or leave your information as a note if the other driver isn’t present, including your name and insurance. Give requested information to any police officers and ensure you request a copy of the police report.
5. Document any damages: Take pictures or video of any damages or visible injuries that resulted from the accident, alongside information about the accident's time, location and the circumstances surrounding it, such as how fast you were going.
6. File a claim: After determining the extent of damages and injuries, getting to safety and contacting the police, you should decide if you should file a car insurance claim. Keep in mind your rates may go up from making a claim, even if you’re not at fault, so ensure your out-of-pocket expenses are worth the increased rates.