How Much Do Rates Go up after an Accident?
One worry many people have after a car accident is that their insurance rates are likely to go up. Car insurance is a legal prerequisite for driving in New Jersey, and a rate increase can be a significant drain on individuals and families whose budgets are already stretched to the limits.
The truth is that there is very little regulation over the amount insurers charge for car insurance, so there’s no standardization about the way things like accidents affect your rates. Other than some basic limits designed to prevent price gouging, insurance rates are largely dictated by the market and the calculations of risk and profit by the insurer.
Here are some factors that can influence the amount your rates go up after a car accident:
- The length of time since your previous accident
- The severity of the accident
- Citations by law enforcement for the accident
- Court determination of your fault in the accident
- The rate you currently pay (lower rates will go up more)
The only way to know for sure is to wait and see. Then, if you don’t like what you’re seeing, you can talk to your insurer, and you may get an adjustment. If not, you may want to shop around for better rates.
A lawyer can help you reduce the share of fault you are attributed in a car accident and reduce the amount both you and your insurance company will have to pay, which may lead to a lower rate increase.
To talk to a lawyer about your car accident, please contact the Law Offices of Anthony Carbone, PC in Jersey City today for a free consultation.