If you have been unfortunate enough to have been involved in an accident, dealing with your own injuries and getting your car repaired may not be the only consequences. Your New York car insurance rates may go up as well.
When an insurance company raises your rates following an accident, it is called a surcharge. The surcharge may be added to the price you pay for your coverage because of statistics. Drivers who have been involved in one accident are more likely to have a second one.
Not all drivers who have had an accident will be subject to a surcharge, though. If the incident was a relatively minor one, causing less than $1,000 in damage, you probably won’t have to pay more for your car insurance coverage in NY. You should take the first accident as a sign that you need to slow down and be more careful while behind the wheel so that you don’t have a second, and possibly more serious, one.
The amount of any surcharge you are required to pay is based on the higher level of risk you present for insurance purposes. It doesn’t have anything to do with the amount of any claims made against your NY car insurance policy. The insurer isn’t attempting to recoup what it paid out by charging you more for your coverage.