Car accidents insurance (2024)

FAQs

How does insurance work when it's not your fault? ›

If you file a claim with your carrier when you are not at fault, your carrier will eventually begin a process called subrogation. Essentially, this means that once liability is determined, your insurance carrier will send a demand to the at-fault party's carrier to pay back the damages that were paid out to you.

Bottom line: In New Jersey, you must be no more than 50 percent at fault in order to recover damages from any other at-fault party after a car accident.

So, in short, in a no-fault state like New Jersey, each driver involved in a crash would pay for their own medical bills, lost wages, and other accident-related bills regardless who is at fault by making a claim against their PIP. However, the at-fault motorist must still pay for the other party's vehicle repairs.

Under California law, an insurer cannot increase your premiums when you aren't at fault.

If it's decided that you are at fault for the accident, you would need to have a fully comprehensive car insurance policy to claim for compensation.

Always File a Claim, Regardless of Who Was At-Fault

And the answer to that question is: always.

For example, in most cases, your state will keep a record of a car accident for three to five years. This is, in fact, the case for New Jersey, and drivers can access their driving records by accessing their Driver History Abstract on the MVC's website.

How to Access the Police Report After an Accident. Since the insurance company doesn't automatically receive a copy of the police report after an accident, you'll have to look up your accident report online.

In short: It's certainly possible your rates will increase if you're in a no-fault accident, but it's difficult to estimate the likely increase.

What happens if the person at fault in an accident has no insurance in NJ? ›

Provided you have a Standard Policy, your own insurance company may pay for damages to your vehicle caused by: any person or organization who did not have liability insurance at the time of the accident.

Let's say your vehicle is damaged due to another driver's negligence. Once GEICO settles your claim, we'll likely seek to recover your deductible, as well as the amount we paid, from the negligent party or that party's insurance company.

It may seem unfair, but accidents that aren't your fault may still increase your rate in certain states. Not-at-fault accidents can indicate a higher likelihood of future accidents.

If you file claims often your insurer may view you as a greater risk, which may lead them to non-renewing your policy. Insurers may not drop a customer after their first one or two incidents. The first step is often to increase your car insurance rate.

Technically, you're required to report a claim even if it's not your fault. We're here to protect your interests and help when you're involved in an auto accident, no matter who was at fault. Reporting a claim is particularly important when people are injured or there's damage to another person's car or property.

Any non-fault and fault claim made by you will be recorded as part of your claims history. It seems unfair, but in many cases, premiums do increase, even after a non-fault claim. This is because your insurance provider will see you as a higher risk going forwards, even if you were not at fault.

Most policies need you to pay an excess, unless an exception applies. Most policies have an excess you need to pay, and it may not matter whether you are at fault or not. Your insurance Product Disclosure Document (PDS) sets out when you don't have to pay an excess, or when your excess is refunded.

If this happens, be prepared to fight for your innocence. This may involve going to court or working with your insurance company to dispute any claims against you. A car accident attorney can be invaluable in this situation and may be able to find key evidence that invalidates any claims against you.