How much may your car insurance increase following a motor vehicle collision?

When a driver is involved in a motor vehicle collision, several factors influence the potential increase in car insurance premiums. The correct answer indicates that an increase of 20% to 40% is a common range for many drivers following a collision. This range considers various factors, such as the severity of the accident, the driver's previous insurance history, and the specific policies of the insurance company.

Insurance companies typically evaluate the risk posed by the driver due to the claim and adjust premiums accordingly. A 20% to 40% increase reflects a significant jump in risk perception for insurers, which may lead them to raise rates substantially, while still being within a range that many drivers might experience based on the industry standards.

It's also relevant to note that other factors such as the driver's claims history, the number of accidents, the state laws affecting insurance premiums, and even whether the driver was at fault can play a role in determining the exact percentage of the increase.