Will Car Insurance Drop You After 2 Accidents?

Getting into multiple accidents in a short period of time can seriously jeopardize your car insurance coverage. Most insurers have limits on the number of claims they will accept over a set timeframe before dropping a policyholder. So can car insurance drop you after just 2 accidents?

The short answer is yes – having 2 at-fault accidents within a few years often leads to non-renewal by auto insurance companies. However, there are steps you can take to maintain coverage. Here’s what drivers need to know about the impacts of accidents on car insurance and options if you’ve been dropped.

How Accidents Impact Your Car Insurance

To understand how 2 accidents could get your policy cancelled, it’s important to first understand how insurers view accidents in general. Here are some key considerations:

  • At-fault vs. not-at-fault – Insurers view at-fault accidents much more harshly than not-at-fault ones when assessing risk

  • Higher premiums – Accidents commonly trigger auto insurance rate hikes at renewal time

  • Claims limits – Most insurers limit the number of claims that can be filed within 3 years before consequences

  • High-risk classification – Too many claims leads to you being labeled high-risk and eventually dropped

  • Policy cancellation – Severe instances like 2+ at-fault accidents often result in non-renewal

So while one minor fender bender may only cause a small premium increase, multiple more serious at-fault accidents make insurers see drivers as very high-risk. This prompts them to sever the relationship and cancel coverage.

How Many Accidents Until You Are Dropped?

Most major insurance carriers use a 3-year window when evaluating how many claims are too many before they will cancel a policy. The exact threshold can vary slightly by insurer. But in general:

  • 1 at-fault accident within 3 years = Rate increase

  • 2 at-fault accidents within 3 years = Non-renewal likely

  • 2+ not-at-fault accidents could also lead to being dropped

Having fewer or only not-at-fault claims reduces (but doesn’t eliminate) the risk of being dropped. And different types of claims (e.g. comprehensive vs. collision) also factor in. But it’s clear that 2+ at-fault accidents in a few years is seriously pushing your luck.

Some insurers may technically allow 3 or even 4 claims within 3 years. But by that point, your rates will be sky high or you’ll have severe coverage limitations, making cancellation preferable for both parties anyway.

Will My Insurance Drop Me After Any Claim?

No, filing a single claim does not automatically lead to your insurer dropping you. But here are some general guidelines on what kind of claims impact your risk profile the most:

At-Fault Accidents

  • Major rate hikes very likely
  • 2 claims could equal non-renewal

**Not-at-Fault Accidents **

  • Smaller premium increases
  • 3+ claims may lead to being dropped

Comprehensive Claims

  • Typically minimal rate hikes
  • Less impact than collision claims

Ticket Claims

  • Almost no effect on your policy
  • Counts towards total claims threshold

The takeaway is that at-fault and collision claims are viewed much more severely by insurers than other types when assessing your risk. But filing too many of any claim in a short timeframe makes cancellation likely.

Steps to Take if You Have 2 Accidents

If you have 2 recent at-fault accidents on your record, here are important steps to take in order to maintain car insurance coverage:

1. Research High-Risk Insurers

Mainstream insurance companies will likely drop you. But specialized high-risk insurers like The General may still offer coverage. Rates will be very high, but at least you lock in a policy.

2. Complete Defensive Driving

Taking an approved defensive driving course can allow you to report a discount to insurers, potentially helping offset some added premium costs.

3. Shop Direct Insurance Companies

Insurers like Geico with direct sales models sometimes offer better rates for high-risk drivers than agents who have to factor in commissions.

4. Raise Deductibles

Ask insurers about raising your deductible (e.g. to $1000) to lower premiums. Just be sure you have savings to cover the higher out-of-pocket costs.

5. Limit Your Driving

Cutting back on driving can also reduce premium costs. If you can show much lower future mileage, you may see some savings.

6. Improve Your Credit

Since insurers use credit when setting rates in most states, improving your credit score may help offset some rate pain too.

While your options will be limited, taking proactive steps allows you to secure coverage following multiple accidents. Make safety your top priority going forward to avoid additional mishaps.

Why Insurers Drop Drivers After Accidents

Now that we’ve covered the thresholds for cancellation, it’s helpful to understand exactly why multiple accidents cause insurers to end the relationship. There are a few key business reasons:

Higher Risk

Multiple accidents indicate you represent substantial risk of future losses, which threatens profitability.

Claims Costs

Each additional claim adds to the cumulative claims payouts the insurer must make over time.

Administrative Burden

Processing multiple claims per policyholder adds expensive administrative costs for insurers.


Customers who regularly file claims lose insurers money over time due to the added expenses.

While accidents happen, insurers are businesses focused on profitability and mitigating losses. If you file too many claims, they simply see you as an unprofitable customer prompting non-renewal.

Alternatives If You’ve Been Dropped

If you’ve been dropped by multiple mainstream insurers after filing too many claims, you still have options to maintain legal coverage:

  • High-risk insurers – Insurers like The General cater to risky drivers.

  • State assigned risk pools – Designed for drivers unable to find coverage.

  • Non-owner car insurance – Covers you when driving other vehicles.

  • Usage-based coverage – Telematics track and reward safe driving.

  • Non-renewable policy – Short-term coverage to meet state minimums.

The costs will be very high, but these alternatives can provide legal insurance if you’ve been dropped. Focus on driving safely and accident-free to gradually rebuild your record over time.

How to Re-Establish Insurance After Accidents

If you’ve taken steps to regain coverage after being dropped, here are some tips to eventually re-establish regular insurance:

  • Go at least 3 years with no new accidents or claims.

  • Take extra defensive driving courses annually.

  • Seek discounts like multi-policy and good student to offset premiums.

  • Increase deductibles and cut coverage to reduce costs.

  • Maintain excellent credit to maximize your savings.

  • Shop quotes frequently as your record improves.

It will take diligent safe driving for a few years for top insurers to see you as a standard risk again. But over time, your perseverance will pay off allowing you to rebuild your car insurance record.

Key Takeaways

Having 2 at-fault accidents within a few years will cause most mainstream auto insurers to drop your policy. While you have options for maintaining state-minimum coverage, it’s an expensive proposition.

Carefully evaluate how to improve your driving skills and habits to avoid additional claims going forward. This will put you in the best position to eventually rebuild your car insurance record and qualify for standard rates once again.

Warning: What NOT to Say To The Insurance Company After a Car Accident


How many claims before car insurance cancels?

Cancellation. Every insurance company sets its own benchmark for triggering a cancellation, but it is more likely that you’ll face cancellation or non-renewal if you’ve made three or more claims within a three-year period. Most cancellations occur within the first 60 days of a policy, usually due to non-compliance.

How many claims before homeowners insurance cancels?

There is no set number of claims that will result in an insurance company dropping you from a home insurance policy. The decision to drop a policyholder is typically based on the frequency and severity of claims, the type of claims filed and the overall risk profile of the policyholder.

What happens if you get in too many accidents?

The threshold for canceling car insurance after multiple accidents differs by insurance carrier, the type of claim, the payout amount and the number of claims you have filed in a three-year period. But having more than one at-fault accident generally gives you a higher chance of being dropped by your insurance company.

Can you have 2 accident insurance policies?

It is perfectly legal to purchase and hold multiple personal accident policies. The policyholder can claim from all the individual accident policies for an accident if the damage falls under the section inclusion.

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