How Will a Car Accident Affect my Insurance?

car accident affect 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 for us, insurance companies in New York are forbidden from raising our monthly payments if the accident caused no more than $2000 in material damages, no one was injured, and the claim is within our insurance policy limits. If these prerequisites are not met, or if you have had more than one accident in a short period of time, your insurance rates will likely increase.

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

Your insurance company will identify you as someone who poses a risk to them after you were engaged in an automobile accident that resulted in injuries or considerable property damage. 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). All drivers in the state of New York are required to acquire a policy that includes the following coverage.

  • $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.

If you fail to fulfill these minimal coverage requirements, your driver license and car registration may be suspended.

No-fault regulations were enacted to prevent New York drivers from filing a lawsuit every time they were involved in an accident in order to recover their expenses. 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. When one of the drivers is at fault, the accident is called a fault accident. In New York, however, culpability might be shared amongst the 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 your car was involved in a hit-and-run accident and it was reported in less than 24 hours.
  • If your automobile was legally parked when it was hit by another vehicle.
  • If you were reimbursed by the person responsible of the accident
  • If damage was caused by animals, falling objects or missile-like objects.
  • If you were not convicted of a moving traffic violation and the other driver is.
  • 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. If you are working with an agent make sure this person is licensed by the state you live in, this means that you will be working with a professional. 

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. You may be tempted to go with the most affordable choice, but think about if the coverage of that plan meets your needs. 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. Keep in mind that attorneys are used to dealing with insurance companies and have dealt with a wide range 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.