Will My Insurance Premiums Go Up After an NYC Car Accident? Injury Lawyer in Brooklyn Explains

Insurance companies, by their very nature, are extremely risk averse and prioritize stable returns on investments above all else. So when you are involved in a car accident, your insurance provider will take it as an opportunity to perform a risk assessment, which more often than not will lead to higher premiums. In this post, the team at Gabriel Law will step into the role of an injury lawyer in Brooklyn and walk you through the car insurance landscape of New York, the factors that influence insurance premiums, and what you can do to protect yourself.

Car Insurance in New York

If you are a driver with a vehicle registered in New York, it is mandatory for you to obtain state liability insurance. Failing to fulfill this requirement allows the DMV to suspend both your license and vehicle registration. At the same time, you may also be slapped with a hefty fine. The minimum liability insurance coverage in New York is as follows:

• $25,000 for bodily injury per person;
• $50,000 for bodily injury per accident; and
• $10,000 for property damage per accident.

At the same time, the state also requires you to have Personal Injury Protection (PIP) coverage and uninsured motorist coverage as part of its minimum insurance requirements, with each insurance covering a different financial aspect of a car accident. The liability insurance covers any damage you might have caused to others in an accident, and UM coverage takes effect if you have been injured by an uninsured motorist. Your PIP insurance will be the one that covers medical expenses and lost earnings in the event of an injury.

New York no-fault insurance

In the event you have suffered injuries in a car accident, your medical expenses, lost earnings, and other related expenses are covered by your Personal Protection Insurance (PIP). This is more famously known as ‘no-fault’ insurance since New York is a no-fault state in the sense that your insurer is legally required to cover the aforementioned expenses, regardless of how much of the accident’s fault is attributed to you. However, the insurance company is only required to cover your expenses up to a cap of $50,000.

What are the factors that influence insurance premiums?

In New York, your insurance company typically reviews your car insurance following an accident, and the decision to increase your premiums will be based on one or more of the factors mentioned below:

• The insurance holder is at fault for the accident.
• The severity of the accident
• The insurance holder’s history of insurance claims
• The use of the vehicle
• Insurance surcharge policies

If you are primarily at fault for the accident, or when it is a serious accident with significant damages, your insurance provider can label you as a ‘high-risk’ driver and increase your premiums. This is done on the justification that by agreeing to be your insurance provider, they are taking a higher risk upon themselves, and thus the increased rate reflects the risk they take. You may also be considered high-risk if a review of your record shows that you have a history of filing claims on a regular basis.

At the same time, if you have been using your vehicle for a commercial purpose such as delivery or ride-sharing, your vehicle is more likely to suffer damages as compared to personal use, leading to stricter evaluations and potential increases in premiums. Furthermore, each insurance company will have its own surcharge schedule, which dictates how an accident or traffic violation may affect your premium.

When is an insurance company prohibited from increasing premiums?

While insurance companies are allowed to increase car insurance premiums in certain situations, there are some situations where they are expressly prohibited from increasing insurance premiums and surcharges. These include:

• When the insurance holder is not at fault for the accident (e.g., being rear-ended by another vehicle when you are not guilty of a traffic violation and being struck in a hit-and-run accident)
• If the accident occurred while you were responding to an emergency (e.g., swerving away to avoid hitting a pedestrian)
• When the property damage in the accident is less than $2000.
• When the car was legally parked at the time of the accident.
• When the accident was the result of an act of God.
• When the driver was under a temporary or indefinite license suspension, which could be reversed after paying a fine.

Conclusion

In the aftermath of a car accident, your insurer would love to do nothing more than to increase your insurance premiums. Therefore, to make sure that your accident does not negatively impact your premiums, we recommend that you consult with an accident injury lawyer in Brooklyn. 

At Gabriel Law, our legal team handles car accident cases on a regular basis, and if you bring your case to us, we will help you understand your legal options, talk to the insurer, and work hard to secure the best possible outcome. Schedule a free consultation with us, and let’s make sure your financial stability does not take another hit after an accident.