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How Much Do Car Insurance Costs Increase After an Accident?

Were you recently in an auto collision? After making sure everyone is alright, your next thought might be, “What is this going to cost me?”

When you file a claim with your car insurance provider, you’re asking the company to foot the bill for your medical expenses, car repairs, and other costs associated with the accident. As a result, your monthly premium may increase following the accident.

Average Car Insurance Rate Increase After an Accident

On average, car insurance rates go up by 48% after getting in a crash. New Jersey drivers face a slightly steeper penalty averaging 59%. The exact amount your insurance company increases your rate depends on these factors:

  • Who was at fault? Whoever caused the accident is penalized the most, but even if you’re not at fault, your rate may increase by 12%. This is especially likely in a no-fault state like New Jersey, where each driver’s insurance company pays their policyholder’s medical bills, regardless of fault. Your insurance may also have to pay if an uninsured driver is at fault.
  • What was the extent of the damage? Accidents resulting in higher property damage, medical bills, and other costs come with higher penalties.
  • What are your insurance provider’s policies? If you have accident forgiveness, you shouldn’t see an insurance rate increase after being in a collision—unless you receive multiple citations. In that case, your insurer may forgive one but not the others, resulting in a smaller rate increase.
  • What is your driving history? Accident forgiveness may only apply to one crash within a specific timeframe. Do you have a history of accidents, moving violations, license suspensions, DUIs, and other infractions? Your insurer may view you as high-risk and raise your rate after each incident.

How Long Increased Insurance Rates Last

The penalty period is typically three to five years, coinciding with how long the accident stays on your driving record. Your insurer may decide to extend this period if your accident includes a DUI conviction, serious bodily injury or death, reckless driving, or excessive tickets during the penalty period.

How to Reduce Car Insurance Costs After an Accident

Whatever you do, don’t forgo car insurance to save money. It’s illegal and dangerous. You could also be fined up to $1,000 or have your license suspended if you drive without liability coverage in New Jersey.

Fortunately, there are other ways to lower your insurance costs:

  • Increase your deductible
  • Lower your coverage
  • Drive more carefully
  • Don’t file a claim if the damages cost less than your deductible
  • Shop for a new provider

When You Need an Attorney

Are you seeking compensation for your injuries after a car crash? Hire an auto accident lawyer in New Jersey to help you get the money you deserve! Contact Gelman Gelman Wiskow & McCarthy LLC at 862-263-0770 today for a free consultation. We would be happy to discuss the circumstances surrounding your car accident and answer any questions you have.

  • In 2020, we settled or won, at trial/mediation/arbitration, 112 personal injury cases. Our clients recovered over ten million dollars. Our firm set a record in 2020 by settling 15 cases for $200,000.00 or more. In the last eleven years, we have settled/won over one thousand cases and our clients have recovered over 100 million dollars.
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  • Results may vary depeding on your particular facts and legal circumstances.
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