You’ve just been in a car accident. You’re shaken and aching, and your first thought is to call an ambulance, not your insurance company. You’re not thinking about money — not yet.
In 2024, 2.42 million people were injured in U.S. crashes, according to NHTSA. That’s more than 6,600 people a day, or one every 13 seconds.
If you’re one of them, your priority is probably just making sure everyone is OK. But once you’ve been patched up, you might wonder: Who’s going to pay for all this?
In our guide below, we break down the cost of a car accident piece by piece, showing you who pays for what and what the costs are likely to be.
How much does a car accident really cost?
Crash injuries cost the country $559.3 billion in 2024, counting lost wages, medical care, administrative costs, vehicle damage and employer costs, according to the National Safety Council.
The real cost of a car accident is made up of three different parts:
- Medical costs for treating injuries
- Out-of-pocket costs (including a deductible)
- The increase in your car insurance premium that appears after an accident
You might be focused on the price of fixing up your car, but repairs aren’t the main cost after an accident; injuries are. In 2025, injury payouts made up 52.3% of combined injury and vehicle-damage payouts, up from 44.4% in 2022, according to CCC Intelligent Solutions analysis.
Injury claims are relatively rare, but when they do happen, they’re large. The average bodily injury claim in 2024 was $28,278, according to the Insurance Information Institute. Each year, there’s an average of 0.80 bodily injury claims for every 100 insured cars.
The first bills: ambulance, ER and treatment
After an accident, the first thing you’ll probably have to pay for is your share of the ambulance bill. The average cost of an ambulance trip for people with employer health coverage is $1,093, but out-of-pocket costs average $229, according to the latest available data from the Health Care Cost Institute.
Medical costs after an accident vary depending on the severity of the injuries. That’s why it’s impossible to pinpoint an “average medical bill,” as there are so many variables involved.
All told, the average cost for a person with a possible injury is $28,000, according to the National Safety Council. If the injury is clearly evident, that average jumps to $45,000. After an accident with a disabling injury, costs typically run about $174,000 (and if there’s a death, it’s $2.05 million), according to the National Safety Council.
Average cost of a crash injury, by severity
The more serious the injuries involved, the higher the average cost. The difference between a possible injury and a disabling injury is $146,000.
The table below shows the average cost of a crash by injury severity, including medical bills, lost wages, and other costs.
| Injury type | Average cost |
|---|---|
| Possible injury | $28,000 |
| Evident injury | $45,000 |
| Disabling injury | $174,000 |
Injury definitions
- Possible injury: An injury that is claimed or reported but not visible at the scene, such as a complaint of pain or nausea, limping or a brief loss of consciousness
- Evident injury: An injury that is visible at the scene, such as bruises, scrapes, a lump on the head or minor cuts
- Disabling injury: A serious injury that keeps the person from walking, driving or carrying on normal activities, such as broken bones, crush injuries or paralysis
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Who pays first: Your health insurance or your car insurance plan?
When the bills start coming in after an accident, where they are routed may depend on the state you live in and whether it is an at-fault or no-fault state. In at-fault states, the driver who caused the accident is responsible for paying the medical bills, usually with their liability insurance coverage. In no-fault states, each driver’s medical expenses are covered by their own insurance.
There are only 12 no-fault states: Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Pennsylvania and Utah.
Which pays first depends on where you live and what you carry. In most no-fault states, your PIP pays first. In at-fault states, your health insurance often pays while the other driver’s liability claim is pending, then asks to be repaid from any settlement. In Michigan, if you choose coordinated benefits, your health plan pays first.
In no-fault states, each driver’s personal injury protection (PIP) coverage typically pays toward their own medical bills. The average PIP claim is $8,966, with 12.9 claims per 1,000 insured vehicles each year, according to Highway Loss Data Institute data on 2022 to 2024 model-year vehicles.
Medical payments coverage (MedPay) is an optional car insurance coverage in many states that can help pay medical bills for you and your passengers, even if you were at fault in the accident. The average MedPay claim is $4,674, with an average of 10.3 claims per 1,000 insured vehicles each year.
Which coverage pays which medical bills?
The bills you receive after an accident may be paid by different insurance coverages as shown in the table below. In general, fault applies to bodily injury liability, but not to other types of coverage, such as PIP, MedPay, or your health insurance.
| Coverage | Whose medical bills it pays | Does fault matter? |
|---|---|---|
| Bodily injury liability | People you injure | Yes. Your coverage pays when you cause the crash. |
| Personal injury protection (PIP) | Yours and your passengers’ | No |
| Medical payments coverage (MedPay) | Yours and your passengers’ | No |
| Health insurance | Yours | No |
What comes out of your own pocket
Just because you’re covered doesn’t mean your care is free. Even with insurance, you may still owe money, starting with your deductible. The deductible is your share of a bill before insurance kicks in, and 88% of covered workers have one, according to the KFF Employer Health Benefits Survey. KFF is an independent health policy research organization. The average deductible for a single-coverage policy is $1,886, per KFF.
If you don’t have the cash to cover it, that could be a bigger problem. The Federal Reserve, tracking the economic well-being of U.S. households in 2025, found that only 63% of adults could cover a $400 emergency with cash (or an equivalent, such as paying off a credit card balance right away). The remainder wouldn’t be able to cover the expense without borrowing money or selling something.
More than a fifth (21%) of adults had an unexpected major medical bill in the past year, typically costing between $1,000 and $1,999. And 18% carry some form of medical debt.
MedPay coverage can bridge the gap, often covering costs including deductibles and copays (up to your policy limit).
What if the other driver has no insurance?
Uninsured motorist insurance can help cover your costs if the other driver chose to drive without insurance. This coverage is mandatory in some states and optional in others, and it could help to pay for things like:
- Your medical bills and medical bills for your passengers
- Damage to your vehicle in states that offer uninsured motorist property damage coverage
Uninsured motorist coverage is often paired with underinsured motorist coverage, which helps cover your costs if the other driver has insurance but it’s not enough.
More than one in seven drivers were uninsured in 2023, according to the Insurance Research Council, with the highest rate in Mississippi (28.2%) and the lowest in Maine (5.7%).
The table below shows the states with the highest and lowest rates of uninsured drivers.
| Most uninsured drivers | % Uninsured | Fewest uninsured drivers | % Uninsured |
|---|---|---|---|
| Mississippi | 28.2% | Maine | 5.7% |
| New Mexico | 24.1% | Utah | 6.2% |
| Washington, D.C. | 23.1% | Idaho | 6.4% |
| Michigan | 22.3% | Wyoming | 6.7% |
| Tennessee | 21.3% | Montana | 7.2% |
What if you caused the crash and the bill exceeds your limit?
A car insurance limit is the maximum amount the insurer will pay out for a covered claim. Higher coverage limits increase the amount your insurer can pay out after an accident. Limits are often written as a series of numbers, such as 25/50/25 or 50/100/50, that designate bodily injury limits per person / bodily injury limits per accident/property damage per accident.
If you have car insurance with 50/100/50 limits, it means your insurer limits your bodily injury liability coverage to $50,000 per person and $100,000 per accident, and your property damage coverage to $50,000 per accident.
Recall the cost of the average injury claim we mentioned above — $28,278. In a state like Pennsylvania, where the state minimums are just 15/30/5, the average injury claim alone would blow past your $15,000 per-person bodily injury limit, leaving you responsible for the rest.
Raising your coverage limits provides greater financial protection if you need to file a claim, and it may not cost much more. The national average cost of state minimum liability insurance is $738 per year, or $62 per month. If you raise those limits to 50/100/50, the average annual cost rises by $91, to $829.
Full coverage can bring those limits to 100/300/100 and also adds collision and comprehensive coverage, which pays if your car is damaged by a covered event. Full coverage costs an average of $2,578 per year, or $215 per month (with $500 deductibles), according to CarInsurance.com’s 2026 State of Auto Insurance Report.
How much does more liability coverage cost?
It costs an average of $7 per month to upgrade from state minimum coverage to 50/100/50 liability-only coverage, and $153 per month to upgrade to full coverage with 100/300/100 limits.
The table below breaks down the average premium increase across various levels of coverage, from the state minimum to 50/100/50 liability-only to full coverage with 100/300/100 limits.
| Coverage level | Average annual premium | Average monthly premium | Difference from state minimum, per year |
|---|---|---|---|
| State minimum | $738 | $62 | — |
| Liability only, 50/100/50 | $829 | $69 | $91 more |
| Full coverage, 100/300/100 with a $500 deductible | $2,578 | $215 | $1,840 more |
The costs that show up later: higher premiums
Once the bills are all paid, there’s still one more cost to consider: the increase to your car insurance premiums. This surcharge applies when you are the driver at fault in an accident, but you won’t see it reflected in your car insurance bill until renewal.
One at-fault accident with damage under $2,000 could raise your rates by an average of 55%. With two at-fault accidents under your belt, insurers will consider you a high-risk driver. You can expect your rates to more than double, rising an average of 136%.
How much do rates rise after an at-fault accident?
An at-fault accident on your driving record changes the risk analysis used to insure you, which is why your rates will go up after renewal. One at-fault accident can raise your rate 55% to 64%. Two at-fault accidents raise it 136% on average.
The table below shows how much rates rise after at-fault accidents with different characteristics (such as damage or injuries).
| Accident | Average annual rate before | Average annual rate after | $ Increase | % Increase |
|---|---|---|---|---|
| One at-fault accident, damage under $2,000 | $2,578 | $3,988 | $1,410 | 55% |
| One single-car accident (only your car involved) | $2,578 | $4,118 | $1,540 | 60% |
| One at-fault accident, damage over $2,000 | $2,578 | $4,153 | $1,575 | 61% |
| One at-fault accident that injures someone | $2,578 | $4,238 | $1,660 | 64% |
| Two at-fault accidents, damage over $2,000 each | $2,578 | $6,075 | $3,497 | 136% |
How much a crash costs in your state
Car insurance laws, repair costs, medical care — all vary from state to state, which means the average car insurance rate increase varies by state, too. Because base rates differ, there are two ways to measure the “biggest” increase after an accident: in terms of percentage increase and dollar increase.
The largest percentage increase after a crash is in Texas, where rates jump an average of 120% ($3,725) to $6,831 per year after one at-fault accident. The lowest percentage increase is in Rhode Island, where rates rise by an average of 30% ($876) to $3,754 per year for full coverage.
Michigan drivers see the biggest dollar increase after an accident, with rates rising by an average of $3,970 (100%) to $7,934 annually. The smallest dollar increase is in Hawaii, where the average rate rises by $703, or 40%, to $2,460 per year.
How to see how much your policy would pay
Find out how much your car insurance policy would pay after an accident by checking three places in your declaration document:
- Bodily injury liability (per person and per accident)
- Property damage liability (per accident)
- Uninsured/underinsured motorist coverage (if you have it)
Compare your figures with the average injury claim from the first section of this article. If you were in an accident, would your bodily injury coverage be enough for the average injury claim?
If not, you may need more coverage to ensure you’re protected. Ask your insurer two questions:
- How much would it cost to raise each limit?
- Is MedPay an available coverage?
You may find that the increase in coverage doesn’t cost as much as you think.
Frequently Asked Questions:
Do I have to pay my health insurance back after a settlement?
Often, yes, you may need to repay your health insurance if the plan paid bills that someone else’s insurer later covered. Otherwise, your bills would be covered twice: once by car insurance and once by health insurance. If car insurance pays out, your health insurance plan doesn’t need to.
Check your health plan documents for a “subrogation” clause. This is the legal language that allows them to recover costs paid by a third party.
Will using MedPay raise my rate?
Medical payments coverage, or MedPay, helps cover your and your passengers’ medical bills and expenses regardless of who was at fault in the accident. A MedPay claim on its own usually won’t raise your rate, especially if you weren’t at fault. But if you caused the crash, the at-fault accident can still raise your premium.
Is MedPay worth it if I have health insurance?
Health insurance covers your medical costs, such as doctor visits, hospital care, and medical treatments, after your copay and deductible are met. MedPay pays toward medical costs for you and your passengers, up to your policy limit. It could also cover your health insurance deductible, copay, and emergency medical expenses.
Does car insurance cover my passengers’ medical bills?
MedPay and personal injury protection (PIP) generally cover passengers in your car, up to your policy limit. Check the details of your policy to see exactly what’s covered.
Do I need a lawyer after a car accident?
Whether you hire a lawyer after an accident depends on whether you have a dispute that requires action. You may be able to handle your claim through your insurer. Claims with a lawyer took a median of nearly 440 days to close, more than double those without one, according to an Insurance Research Council auto injury claims study (for claims closed from 2017–22). The IRC is funded by insurers.
Conclusion
There are three kinds of costs you’ll pay after a car accident: medical costs, out-of-pocket costs, and the cost of a higher insurance premium when your policy renews.
To make sure you have enough car insurance to cover your expenses, check your declarations page and find the limits we mentioned in the last section (bodily injury liability per person and per accident and property damage liability).
If your coverage looks thin, ask your insurer what it would cost to raise those limits. Compare that to offers from other insurers to be sure you’re not overpaying.
Resources & Methodology
- Insurance Information Institute. “Facts + Statistics: Auto Insurance.” Accessed October 2026.
- National Highway Traffic Safety Administration. “Overview of Motor Vehicle Traffic Crashes in 2024.” DOT HS 813 791. Accessed October 2026.
- National Highway Traffic Safety Administration. “2024 Quick Facts.” DOT HS 813 809. Accessed October 2026.
- National Safety Council. “Motor Vehicle: Introduction.” Injury Facts. Accessed October 2026.
- National Safety Council. “Guide to Calculating Costs: Data Details.” Injury Facts. Accessed October 2026.
View More
- CCC Intelligent Solutions. “Crash Course 2026.” Accessed October 2026.
- Health Care Cost Institute. “Ambulance Trends Over 10 Years: 2012–2021.” Accessed October 2026.
- Highway Loss Data Institute. “Personal Injury Protection Claims Summary, 2022–24 Model Years.” Insurance Report. Accessed October 2026.
- KFF. “2025 Employer Health Benefits Survey: Summary of Findings.” Accessed October 2026.
- Board of Governors of the Federal Reserve System. “Economic Well-Being of U.S. Households in 2025: Savings and Investments.” Accessed October 2026.
- Insurance Research Council, via Insurance Information Institute. “Facts + Statistics: Uninsured Motorists.” Accessed October 2026.
- Insurance Research Council. “Insurance Research Council Study Finds Rising Medical Costs and Attorney Involvement Are Driving Up Auto Injury Claim Costs.” InsuranceNewsNet. Accessed October 2026.
- CarInsurance.com. “2026 State of Auto Insurance Report.” Accessed October 2026.
Methodology
The insurance costs are estimated from CarInsurance.com’s 2026 State of Auto Insurance Report, which analyzes millions of quotes using data from Quadrant Information Services. The figures are averages for specified driver and coverage profiles, not personalized offers. Actual premiums vary by location, insurer, vehicle, driving record, coverage and available discounts.
Injury costs, health deductibles, household finances, PIP and MedPay claims, and uninsured driver rates are sourced from the external sources listed above.
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