Following an accident, your car insurance rates are likely to increase, regardless of whether you are at fault. While causing an accident typically results in a more significant premium increase, even being the victim can lead to higher rates. Insurance companies assess risk based on various factors. A car accident can indicate a higher risk profile of future claims. Please continue reading as we explore when a no-fault claim can raise your insurance costs and why connecting with a determined New York City Car Accident Lawyer is in your best interest.
Do Car Insurance Rates Go Up After a No-Fault Accident?
First, it’s important to understand that when it comes to car insurance, there are two kinds of accidents: at-fault and no-fault. A no-fault accident occurs when you aren’t the party who caused the crash, while an at-fault accident occurs when you are responsible for a collision. Insurance providers have specific fault assessment methods that determine which driver is at fault after an accident and which insurance company is responsible for the resulting damages.
Generally, your car insurance rates typically won’t increase after a no-fault accident since the at-fault party’s insurance company will cover the damages. Since your insurer won’t be required to pay, your premiums will likely remain the same.
Even if you aren’t at fault, your insurance company may still raise your rates if they incur costs due to the accident, such as paying for damages to your vehicle or medical expenses under your Personal Injury Protection coverage (PIP). Insurance companies examine several years of driving history to determine an appropriate amount to charge policyholders. Depending on your insurer, you may not see an increase in your premiums for damages below a specific threshold. Despite not being responsible for the cause of the collision, your involvement could be perceived as an indicator of increased risk for future accidents.
Car accidents usually remain on a driver’s record for three to five years. A no-fault accident will appear on your driving record. The presence of a no-fault accident may not result in an immediate increase, but it can influence your risk profile, leading to higher rates upon policy renewal or when switching insurers.
Unfortunately, car accidents are quite common due to negligence. If you’ve been injured in one, it’s advisable to speak with a New York City car accident lawyer from The Bàez Legal Group; we are prepared to inform you of your options and fight for the justice you deserve. Connect with our firm today to learn more about car accidents and how we can help if you’ve been harmed in one.
