Can My Insurance Company Raise My Premium Due to an Accident?

Last Updated on January 30, 2026

Yes, your auto insurer can raise your premium after an accident—but in New York there are meaningful limits on when an accident can be treated as “chargeable” for a surcharge. Also, not every post-accident increase is a surcharge: some increases come from losing discounts, changing tiers, or an overall rate change at renewal.

Quick Answer: Yes, But New York Limits Some Surcharges

Most premium changes tied to accidents show up at your next renewal. New York’s “merit rating” rules (the point/surcharge system insurers file with the Department of Financial Services) restrict when insurers can add accident points or a surcharge—especially for small property-damage losses, comprehensive claims, and several common not-at-fault scenarios.

Situation	Accident Surcharge Under NY Merit Rating Rules?	What This Usually Means
Single accident with property damage ≤ $2,000	Generally no	No accident points/surcharge under the merit plan (but other renewal changes may still occur).
Property damage > $2,000	Possible	May be “chargeable” depending on fault and your insurer’s filed plan.
Comprehensive claim (theft, vandalism, glass, weather)	No (for comprehensive)	Comprehensive premiums can’t be surcharged under the merit plan, and comprehensive claims can’t be used to surcharge other coverages.
Rear-ended while stopped (no moving violation)	No (specific exception)	Merit plan rules prohibit points/surcharge in this scenario.
Hit-and-run (reported within 24 hours)	No (specific exception)	Merit plan rules prohibit points/surcharge if timely reported.
Bodily injury occurrence where you are at fault	Possible	A surcharge may apply if your insurer determines you were at fault.
Two or more property-damage accidents in the experience period	Possible	Even smaller accidents may become surchargeable when there are multiple accidents in the experience window.

Important: The table above summarizes the core New York restrictions, but every insurer’s filed plan and your specific facts still matter. When in doubt, ask your insurer (in writing) whether the loss is “chargeable” under its New York merit rating plan.

No-Fault vs. Fault: Why The Terms Get Confusing

New York is a no-fault state for medical benefits (Personal Injury Protection, or PIP), meaning certain injury-related benefits are paid by the injured person’s insurer regardless of who caused the crash. But no-fault does not mean “no one is at fault” for liability, claims handling, or underwriting decisions.

Insurers still determine fault for liability claims, subrogation, and (when allowed) merit rating. For New York’s official consumer guidance on PIP/no-fault benefits, see the NY Department of Financial Services no-fault FAQs: https://www.dfs.ny.gov/consumers/auto_insurance/nofault_faqs.

New York Rules That Limit Accident Surcharges

New York restricts premium increases “solely because” of certain accidents and traffic infractions in state law, and it also regulates how insurers apply accident points and surcharges through merit rating rules. If you want to read the primary sources:

• New York Insurance Law § 2335 (NYS Senate)
• NY DFS OGC Opinion (includes merit rating exceptions and surcharge discussion)
• 11 NYCRR 169.1 (Regulation 100 procedures, via Cornell/LII)

Key Restrictions You Can Use In Real Life

• Small property-damage accidents: A single accident with aggregate property damage of $2,000 or less generally cannot trigger merit rating points or a surcharge under the plan.
• Multiple accidents: Two or more property-damage accidents during the experience period can change the outcome—even if one of them is under the threshold.
• Comprehensive claims: Comprehensive premiums can’t be surcharged under the merit plan, and comprehensive claims can’t be used to surcharge other coverages.
• Common not-at-fault scenarios: The merit rating rules prohibit points/surcharges in several situations, including lawful parking, being rear-ended (with no related moving violation), and certain hit-and-run events reported within 24 hours.

Why Your Premium Can Rise Even When You Aren’t At Fault

Even if a merit rating surcharge is restricted, you can still see a higher premium after a claim. That’s because insurers price policies using many moving parts—some tied to you, some tied to your vehicle/territory, and some tied to statewide rate changes. For a broader overview of common drivers of increases, see why car insurance rates rise.

Common Post-Accident Reasons Your Bill Changes

• Loss of discounts: Accident-free, claim-free, or safe-driver discounts can drop off after any paid claim (even when not “chargeable”).
• Tier movement: Some insurers adjust tiers based on claims activity, regardless of fault, especially when there are multiple losses over time.
• Coverage changes: Rental reimbursement, towing, collision, and lower deductibles increase premium—and people often adjust coverage after a crash.
• Base rate changes: If your insurer files a rate increase (or your territory/vehicle rating changes), your renewal can rise even with a clean record.
• Claim costs still matter: Your insurer may pay PIP/medical and other first-party benefits and then seek reimbursement through established processes (for example, inter-company loss transfer in specific cases). Those costs can influence underwriting even when the other driver caused the crash.

How Much Can Your Premium Change After An Accident?

There isn’t one universal percentage or dollar amount. The impact depends on fault, injury involvement, total paid losses, your prior record, your insurer’s filed merit rating plan, and whether you lose discounts. If you’re trying to set expectations, this guide on what increases can look like breaks down the typical factors that matter most.

When You’ll See The Increase And How Long It Can Last

Most accident-related changes show up at renewal, not immediately after the crash. New York guidance also emphasizes that insurers must charge premiums consistent with their filed rates and rules, and they generally apply any merit rating surcharge starting at renewal. In practice, accident-related rating often looks back about three years, but the exact “experience period” is defined in the insurer’s filed plan.

Timing	What Usually Happens	What To Watch
Day of accident → claim reported	Claim is opened, facts gathered, coverage confirmed.	Get a police report when appropriate, and keep photos/estimates.
Claim resolution	Payments may be made (repairs, PIP, rental, etc.).	Ask whether the loss will be coded as not-at-fault and whether any moving violation is involved.
Renewal offer	Discounts, tiers, and (if allowed) merit points/surcharge may apply.	Compare renewal to prior term line-by-line; don’t assume a single “surcharge” explains it all.
Next 1–3+ renewals	Accident impact gradually fades as it ages out of the experience period.	Multiple claims in a short window are more likely to trigger pricing changes.

How To Protect Your Rate After A Crash

If you’re trying to avoid an unnecessary premium increase, focus on documentation and claim accuracy first—then focus on shopping and coverage strategy. If you were hit by someone else, start with these steps after a not-at-fault accident.

1. Document fault early: photos, dashcam footage, witness info, and the police report number can matter—especially for rear-end and hit-and-run scenarios where New York merit rating rules limit surcharges.
2. Confirm how the claim is coded: ask your insurer how it is recording fault and whether the accident is “chargeable” under its merit rating plan.
3. Watch the moving violation issue: some New York merit rating protections depend on there being no conviction for a moving violation connected to the accident.
4. Be thoughtful about small claims: if the damage is minor and you can pay out of pocket, sometimes it’s worth comparing the short-term cash cost against potential long-term premium impact (especially if you’ve had other recent losses).
5. Ask about accident forgiveness: some carriers offer it (sometimes only after a clean period). Don’t assume you have it—confirm in writing.

Shopping Around Without Creating New Problems

Comparing quotes can still be worthwhile after an accident—especially if your renewal jumped due to discount loss or tier movement. Start with a reputable shortlist (see compare top NY carriers), then refine based on price and claim-handling fit (see find low-cost options in NY).

• Shop with consistent inputs: same deductibles, same limits, same drivers, same garaging address.
• Time your switch carefully: switching mid-claim can create headaches. If you switch, keep proof of prior coverage and claim status.
• Avoid coverage gaps: even short lapses can trigger higher pricing and underwriting issues (and can cause administrative problems that look like backdated coverage mistakes).
• Don’t hide the accident: insurers validate loss history; mismatches can lead to re-rated premiums or underwriting action later.

What A 2017 Study Still Teaches Drivers

While pricing has changed since 2017, Consumer Federation of America research remains a useful reminder that insurer practices can vary widely by company and state, including how not-at-fault accidents are treated in quotes. The study compared quotes in 10 cities and reported that not-at-fault drivers in some markets saw increases, while states like California and Oklahoma prohibited the practice at the time of the study.

If you want the original source, see: Consumer Federation of America (Feb. 2017). The same release also notes differing approaches among large carriers, which is why it can help to compare how major insurers operate in New York—such as GEICO in New York, Farmers in New York, and State Farm in New York.

Bottom Line

After an accident, your premium can change—but in New York, state law and merit rating rules limit when insurers can apply accident points or surcharges, especially for smaller property-damage losses and several common not-at-fault scenarios. The smartest move is to confirm how the claim is coded, understand what changed at renewal (discounts, tiers, base rate), and shop carefully if the new price no longer makes sense.

Insurance rules and underwriting practices vary by company and situation. This article is for general informational purposes and is not legal advice.

FAQs on Premium Increases After Accidents