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How Will a Car Accident Affect my Insurance?

How Will a Car Accident Impact My Insurance?
New York City Personal Injury Lawyer I Greenberg & Stein, P.C.

Have you lately been in a car accident? If you have, you are most likely dealing with a slew of issues relating to the procedures that follow a crash. It is also possible that you are currently wondering if your insurance premiums will rise as a result of the incident you just experienced. First and foremost, you must understand that not all car accidents will result in a rise in your insurance premium. Fortunately, New York insurance regulations prevent insurers from increasing monthly premiums if an accident results in less than $2000 in property damage, no injuries occur, and the claim falls within policy limits. However, failure to meet these conditions or multiple accidents may lead to rate hikes.

How Much Does Car Insurance Increase After a Car Accident in New York?

After a car accident causing injuries or significant property damage, your insurance company will deem you a higher risk. Your insurance premium will go up as a result of this. This increase is typically close to 41% of your previous monthly payment in New York. If you used to pay $200, for example, you would see an increase of $80. Keep in mind that depending on the severity of the damages, this percentage could be higher. In most circumstances, insurance companies will look at your driving record for the previous three years, so accidents before that period will have no bearing on the cost of your coverage. 

Minimum Liability Requirements for Auto Insurance in New York

New York is a no-fault state, which means that if someone is injured in an accident, they can pursue compensation with their own insurance company, regardless of who is at fault. Personal Injury Protection is the common name for this type of insurance (PIP). Drivers in New York must obtain a policy including the following coverage as mandated by state law.

  • $10,000 for material damages.
  • $25,000 for bodily injury to one person.
  • $50,000 for bodily injury to two or more people.
  • $50,000 for one fatality.
  • $100,000 for two or more fatalities.

Failure to meet these minimum coverage requirements may result in the suspension of your driver’s license and car registration.

No-fault regulations were implemented to deter New York drivers from initiating lawsuits for every accident to cover their costs. You can, however, initiate a lawsuit against the at-fault party if the costs of the collision exceed the coverage of your Personal Injury Protection.

When Car Accident Insurance Premiums in NY Don’t Go Up?

Even if you are involved in an accident, your insurance premium may not increase in some cases. One factor that most insurers consider is whether or not you were at fault. In New York, when one driver is at fault, it’s termed a fault accident, though culpability may be shared among drivers. If you were not at fault for 50% or more of the accident, your insurance rates are unlikely to increase.

Here’s a list of instances in which your premiums are likely to stay the same:

  • If you reported your car’s involvement in a hit-and-run accident within 24 hours.
  • If your vehicle was parked legally at the time of the collision.
  • If you received reimbursement from the responsible party for the accident.
  • If the damage resulted from animals, falling objects, or projectiles.
  • If the damage resulted from incidents involving animals, falling objects, or projectiles.
  • if your insurance company was able to recover 80% or more of the losses from the other driver’s insurer by subrogation. 

Choosing a Car Insurance Company in New York

When it comes to purchasing insurance for your vehicle, you may feel overwhelmed by the large number of companies offering policies.Many people buy a policy because it’s from a well-known company, others because the monthly payments are inexpensive, and yet others because it’s the first option that came up. Nevertheless, this should not be the method by which you select the insurance firm in which you will place your faith. We suggest taking these steps before obtaining a policy.

Evaluate different companies: Ask for quotes from different companies. Nowadays, you can compare insurance rates online, but if you prefer you can always speak to an agent or broker. Ensure that the agent you’re working with holds a valid state license, indicating their professionalism and expertise in the field.

Provide accurate information: When you seek a quote, the insurance company, broker, or agent will ask you for information regarding the vehicle you own, especially if you are doing it online. Make sure you have all of the correct information about your car to avoid receiving quotes that aren’t correct.

Choose a coverage that suits your needs: Once you’ve collected many quotes, weigh the advantages and disadvantages of each firm or product you’re evaluating. Opting for the cheapest option may seem tempting, but consider whether the coverage provided aligns with your requirements. Some insurance companies provide more coverage in the event that you are at fault, while others provide more asset protection.

Is It Necessary to Hire an Attorney for Your Insurance Claim?

Although there are no laws requiring you to hire an attorney when submitting a claim with an insurance company, engaging a lawyer will almost likely increase your chances of collecting fair compensation sooner. Attorneys are adept at navigating interactions with insurance companies and have extensive experience with a variety of vehicle accidents. When it comes to negotiating a settlement, their experience will be invaluable. In addition, if your injuries prevent you from gathering information or documentation necessary, a lawyer will assist you in these things. Most importantly, if you are unable to obtain adequate compensation and must initiate a lawsuit, having an experienced attorney on your side is critical to your success.

Get a Free Case Analysis with a New York Personal Injury Lawyer 

Greenberg & Stein P.C. is dedicated to assisting those in need. Please do not hesitate to contact us if you believe you need support with an insurance claim or if you suspect your case will need you to go to court. Our attorneys have dealt with numerous car accident cases and have guaranteed that our clients receive fair compensation for their losses. Call us at 212-969-8770 to schedule a free case analysis with one of our personal injury lawyers.