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How Much Does Car Insurance Go Up After an Accident In New York?

New York limits insurance companies’ ability to impose surcharges on customers following car accidents. This means that insurers are prohibited from increasing your base premium after a car motor vehicle collision, provided that:

  1. Your claim was filed under your comprehensive coverage
  2. Damages for your accident amounted to less than $2,000, and there were no physical injuries or fatalities resulting from the crash

The limitations are lifted, however, if you are involved in two or more accidents, regardless of the amount of damage. Expect your premiums to go up in this case.

The average annual car insurance rate increase for New York drivers with one at-fault crash is $80. NerdWallet arrived at this number, and similar numbers for other states’ drivers, by analyzing quotes for drivers who had one at-fault crash and calculating how much more they pay for car insurance than drivers with accident-free driving records.

Understanding Insurance Rate Increases After an Accident

Insurance companies shy away from risk. When you are involved in a car accident, even if you did not cause the collision, your insurer might categorize you as presenting a higher risk than someone with a blemish-free driving record.

As a means of offsetting this risk, your insurance carrier may decide to increase your base car insurance premium.

Typically, insurance companies review your record going back from three to five years to determine your rates.

How New York Car Insurance Differs From That in Other States

New York is a no-fault state, meaning that your insurance company will pay for your medical bills and lost wages (up to a certain amount), regardless of who caused the accident.

As such, fault only enters the picture if one driver meets the state’s no-fault threshold (damages over $50,000 or “serious injuries” resulting from the accident). In this case, the driver can file a personal injury lawsuit against the at-fault party, which could tap into the driver’s insurance, driving up his/her insurance premiums.

New York’s Insurance Level Requirements

New York drivers with cars registered in the state are required to buy New York State (NYS) liability insurance from an in-state insurance provider.

The state also requires that you carry a minimum liability as follows:

  • $10,000 (property damage caused by a single collision)
  • $25,000 (for bodily injury to one individual); $50,000 (one, accident-related fatality)
  • $50,000 (for bodily injury to two or more people); $100,000 (two or more accident-related fatalities)

New York’s DMV can suspend both your driver license and your vehicle registration if you do not maintain New York State-issued automobile liability insurance coverage.

Choosing Your New York Automobile Insurance Provider

New York State’s Department of Financial Services (DFS) provides a ranking of automobile insurance companies based on how many consumer complaints were upheld against each provider in a two-year timeframe.

The 2018 Auto Complaint Ratios document is available on the DFS site for your consideration in choosing an insurance provider.

DFS also offers an Auto Insurance Resource Guide to facilitate your insurance purchase further. The online resource provides information on:

  • Minimum auto insurance requirements
  • Applying for auto insurance
  • Cancellation and renewal
  • Discounts and saving money
  • Filing claims
  • Gap and umbrella policies
  • Difficult-to-insure vehicles
  • Trouble getting coverage

We Will Handle Your New York Car Accident

If you were involved in a car accident in New York, the legal team at Friedman & Simon, L.L.P. will talk to insurers on your behalf, calculate your damages, and if you want to pursue a personal injury action, prove fault and liability and represent you in court. We also handle dog bites and medical malpractice cases.

Call us at 516-932-0400 for a no-cost, no-obligation consultation.

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