After being involved in an auto accident, one of the first things that comes to mind, besides whether or not you are injured, is likely how your insurance premiums will be impacted. No one wants to pay more in auto insurance, especially when you aren’t at fault for the collision. The actual outcome will depend on the details of the circumstances, but it is possible for your insurance rates to go up even if the accident wasn’t your fault. For more information regarding your legal rights and options after a crash, consult with a skilled Middlesex County auto accident attorney.
Is New Jersey a No-Fault State?
New Jersey is what is known as a no-fault accident state. This means that all drivers are required to carry PIP (Personal Injury Protection). This is a no-fault insurance that you can file a claim with after being involved in an accident, whether you were responsible for the crash or not.
Because NJ is a no-fault state, all drivers will file a claim with their own insurance provider first for compensation for medical expenses and other associated costs like lost wages. Because of this law, all accidents, regardless of liability, cost your insurance company money.
Can My Insurance Rates Go Up if the Accident Wasn’t My Fault?
While it may seem unfair, even if an accident wasn’t your fault your insurance rates may go up anyway. Insurance premiums are calculated by providers based on risk. Insurance companies assess how likely you are to file a claim based on various factors including your age, gender, location, vehicle, and driving history. If you are involved in an accident, even one that isn’t your fault, you are going to file a claim with your provider’s PIP.
Your provider paying out a claim through PIP costs them money and indicates that you are more likely to be involved in future accidents and claims, even though you did not cause the crash. When determining whether your rate will change after a no-fault claim, your insurance provider may take into account the amount they paid out in PIP for the collision.
How Long Will an Accident Affect My Insurance Rate?
When calculating insurance premiums for drivers, companies consider several years of driving history. Depending on the company and its policies, your rate will likely remain increased for at least three years, and sometimes as long as 5 to 10 years. This can be extremely frustrating, especially if you were not at fault for the collision.
Even though you did not cause the accident and were the victim of the situation, insurance companies consider any accident evidence that you are more likely to file a claim in the future, whether due to your driving habits or being in the wrong place at the wrong time. For more information and legal advice regarding your accident and compensation, reach out to an experienced attorney at Stathis & Leonardis, LLC today.
