If you’ve been involved in an accident in New Jersey, you may be wondering how long it stays on your auto insurance record?
Having an accident, or multiple accidents, on your insurance record can impact your premiums and surcharges, especially if you were liable for the accident occurring and it led to severe injury.
For accidents caused by someone else’s negligence, drivers have the right to file an insurance claim to receive compensation for the damages, but it may still affect their insurance rates going forward.
With this in mind, drivers who’ve been involved in an accident should consider consulting with a lawyer.
Differences Between Insurance Records and DMV Records
Insurance records and DMV records vary because of liability and circumstances.
- DMV record: Includes traffic violations, license suspensions, speeding tickets, citations (such as a DUI conviction), and police reports. The DMV also uses a points system. Primarily used by authorities, court officials, and sometimes by employers to track legal driving history.
- Insurance record: Includes past accidents, personal injury claims history, and your data profile to track financial risk.
Either record can affect insurance premiums and future insurance applications. Speak with a Jersey City car accident lawyer about your options and legal rights.
How Accidents Affect Your Car Insurance Options
A car accident may hike your insurance premiums for an extended period of time if you were found liable or even partially at-fault for an accident. This is due to the increased risk associated with insured customers, and it also compensation for the cost of the time and labor incurred by your accident claim. Insurers can raise premiums anywhere between 20%-50% for at-fault accidents.
Your insurance policy may include accident forgiveness, which is a type of insurance for drivers with a clean record (five years or more with no history of accidents) that prevents premium hikes after accidents. However, these are not available to every driver, and very rarely are available for new drivers.
For drivers with uninsured motorist coverage, which is an insurance policy term for accidents involving another driver who is not insured, there are also additional protections if your primary and secondary insurance does not cover the cost.
Factors That Influence Duration of Record
While one can expect an accident to remain on their record for three years, there a few factors that may determine if this time is reduced or not, such as:
- Liability: Drivers who were not at fault for an accident could see a shorter term or possibly even removed from the record altogether.
- Severity of injury: Major injuries could influence the payout of the insurance claim, leading to more risk liability.
- Filing a claim: Putting in a claim for an injury may affect your record visibility and increase certain insurance surcharges.
- Prior record: Drivers with no prior accidents could see a shorter record, but a driving history with numerous incidents will be a red flag to insurance adjusters and may lead to longer records.
- Defensive driving courses: Demonstrating safe driving and a willingness to prevent accidents can help reduce risk and duration of your record.
- Credit-based insurance score: Your insurance score is a numerical value that represents a driver’s risk. Typically, a lower score will have a shorter duration of your record.
Learn more about your driving and insurance record by speaking with an experienced car accident attorney.
When Do Premiums Return to Normal?
Rate increases for car insurance are common after an accident, but not permanent. But there are many factors that determine if they go back down.
- Risk assessment: Insurers will periodically reassess drivers’ risk associated with accidents or suspensions by looking at their behavioral changes and actions to prevent future accidents and encourage safer driving.
- Driving record: Even if the accident may no longer appear on your driving record, it could still lead to higher premiums, but for a shorter period of time.
Overall, there is no one answer as to when your premiums return to normal, as it is typically a case by case basis, one can expect that an accident could stay on your record for years and leave drivers to find ways that mitigate their risk in the future.
Role of Police Reports in Insurance Records
Typically, an insurance agent will investigate the cause of the accident to adjust their payout, so they will review the police report as proof of the incident and clarification on the victim’s claims. Accessing the police report can also let the insurance company see your driving record.
These reports can also include witness statements, accident reconstruction diagrams, or officer’s notes that can give insight into a victim’s claim.
Will a minor accident impact my record?
Minor accidents will likely not have a big impact compared to a major collision. Fender benders should still be reported to the insurance agency, but a claim may not be necessary if there was no serious injury or car damage.
Accidents with minimal damages and insurance usage may only increase rates to 10%-20%, where major collisions will see much higher price hikes.
State-Specific Laws Regarding Auto Accidents and Insurance Premiums
Each state has a different policy regarding accident records. For New Jersey, a car accident will stay on an insurance record for three years, including at-fault accidents or any accident where an insurance claim was filed.
New Jersey is a modified comparative negligence state, meaning that the claimant’s amount of fault cannot exceed the defendants in a personal injury claim, and the amount of comparative fault can affect the claimant’s insurance coverage and diminish their compensation.
Get the legal help you deserve
The sooner you take action after an accident, the better chance you have at receiving proper compensation for injury and proving that you were not at fault. That’s where a car accident lawyer comes in.
At Omni Injury and Accident Law, we have a proven track record of winning settlements for our clients and years of experience dealing with insurance carriers. We have a case-by-case approach and will listen to your specific needs. Consult with a Jersey City injury lawyer from Omni Law today!