Who Pays For Car Accident Compensation in New York?

Injured? Call Now

Talk to a LAW.COM Premier Attorney today!

Your attorney can help you understand this complicated process

Car accidents can happen in an instant in New York. Suddenly, you or a loved one might have a serious injury due to a collision. When this happens, expenses can add up fast. From medical bills to vehicle repairs, lost wages, and more, the financial impact of your crash can quickly add up to hundreds of thousands of dollars or even more.

If you got hurt in a car accident in New York, you deserve to be compensated for your injury-related expenses. But getting the money can be difficult. The legal process can be confusing as well. Should you file an insurance claim? Or should you file a car accident lawsuit? Before you do anything, make sure you understand exactly how the legal system works in New York.

New York is a “no-fault” state

New York has what’s known as a “no-fault” car insurance system. This means that you must file an insurance claim with your own insurance company first in most cases. To file a third-party claim with another driver’s insurance company or a lawsuit against the at-fault driver, you need to meet certain criteria.

What are New York’s minimum car insurance requirements?

In New York, all drivers are required to have a minimum amount of car insurance coverage. Drivers cannot legally register a car in New York without proof of “automobile liability insurance coverage.” New York’s minimum insurance requirements include:

$10,000 for property damage for a single car accident.
$25,000 for bodily injury for someone injured in an accident.
$25,000 per person for uninsured/underinsured motorist coverage. Sometimes referred to as UM/UIM coverage, this type of insurance covers accidents involving drivers without car insurance or underinsured drivers.
$50,000 per accident for uninsured/underinsured motorist (UM/UIM) coverage.
$50,000 for no-fault coverage, also known as Personal Injury Protection (PIP) insurance. This covers your medical expenses, loss of income, and other accident-related expenses.
$50,000 for two or more people injured in a car accident.
$50,000 for a car accident fatality.
$100,000 for the death of two or more people in an accident.

These are the minimum car insurance requirements for New York. Drivers can choose to have more car insurance if they choose to do so.

Additional optional car insurance in New York

In addition to the mandatory car insurance requirements in New York, drivers can choose to have additional car insurance, including:

Additional PIP No-Fault Insurance – Drivers can choose to have additional insurance on top of the minimum $50,000 PIP coverage required in New York.
Supplementary Uninsured/Underinsured Motorists (SUM) Coverage – Drivers can choose to add additional insurance coverage on top of the minimum $25,000 per person/$50,000 per accident UM/UIM coverage in New York.
Collision Coverage – This type of insurance covers the cost of repairing a driver’s vehicle if it’s involved in a collision, regardless of who’s at fault.
Comprehensive Coverage – This type of insurance pays for damage to the driver’s vehicle if the damage is caused by something other than a collision with another vehicle. For example, comprehensive coverage covers collisions with animals, fire damage, flood damage, or damage caused by a falling tree or storm debris.
Medical Payments Coverage – This type of insurance covers medical expenses and funeral expenses, regardless of who’s at fault.

Depending on your car insurance provider, additional insurance coverage may be available. Such additional insurance coverage may include:

Towing and Labor Coverage – This type of insurance covers the cost of towing your car if necessary.
Extended Transportation Coverage – Also known as “Rental Reimbursement” insurance, this type of insurance covers the cost of renting a car if you cannot drive your vehicle while it’s being repaired.
Mechanical Breakdown Insurance (MBI) Coverage – This type of insurance covers certain major failures or malfunctions (including certain electrical system problems, transmission repairs, defective brakes) not covered by most basic car insurance coverage.
Accidental Death and Dismemberment (AD&D) Coverage – This type of additional car insurance pays a one-time payment to surviving family members in the event of a fatal car accident. AD&D coverage also pays individuals a set amount if they lose an arm or leg in a car accident.

Other car insurance coverage may be available. Talk to your car insurance provider to find out if there are other types of optional insurance available to you.

Can I file a lawsuit after a car accident in New York?

In many cases, yes, you do have the right to file a lawsuit seeking damages (financial compensation) for your car accident. However, certain conditions need to apply, since New York has a no-fault car insurance system. Such conditions include:

You sustained a “serious injury” that meets New York’s injury threshold, as defined by New York State Insurance Law, Chapter 28, Article 51.
Your injury-related expenses exceed the settlement amount offered by the at-fault driver’s insurance company.
Someone other than another driver caused your accident, in which case you can file a third-party lawsuit against the at-fault party. For example, if a bar or liquor store sold alcohol to a driver who was already intoxicated and then caused your accident, you can sue the bar or liquor store. Such third-party lawsuits are known as dram shop claims.
A loved one died in a car accident, in which case the surviving family members can file a wrongful death lawsuit.

Other situations or conditions may apply. The best way to know if you have the right to file a car accident lawsuit in New York is to talk to an experienced New York car accident attorney.

Injured? Speak to a Law.com Premier Attorney

Can I recover compensation if I was partially at fault for causing my car accident?

The short answer? Yes. However, you will receive less money than if the other driver was 100 percent at fault. New York has what’s known as a “pure” comparative negligence insurance system. Under the rules of this system, the amount of money an injury victim receives in a car accident is reduced by the percentage they are found to be at fault. For example, if a driver’s car accident claim is worth $100,000 and the driver is found to be 20 percent at fault, the driver would only receive $80,000 since their payment would be reduced by 20 percent.

This is why it’s important to consult with an attorney as soon as possible after an accident. Even if someone knows the other driver was 100 percent at fault, the at-fault driver’s insurance company will do everything they can to blame the other driver for being partially at fault or even completely at fault.

What types of damages can I be compensated for in New York?

“Damages” is a legal term used to describe money paid to someone injured in an accident caused by someone else. In New York, injury victims can generally obtain two main types of compensation – economic damages and non-economic damages.

Economic damages include direct losses due to a car accident worth a specific amount of money. This can include:

Medical bills due to your car accident, including all anticipated future medical treatment for your car accident injury.
Replacement income if you cannot work while you’re recovering from your injury.
Lost future income if you cannot return to work due to a permanent disability.
Replacement services if you cannot perform certain tasks due to your injury. Examples include hiring someone to clean your house, perform yard work or care for children or other family members.
Home modifications due to a permanent disability caused by an accident, such as, installing a wheelchair ramp for a house.
Property damage caused by the accident.

Non-economic damages are indirect financial losses that do not have a specific dollar amount, but which have a real impact on an injury victim’s life. Non-economic damages can include:

Pain and suffering due to an accident.
Emotional distress
Loss of companionship
Loss of enjoyment of life

Injury victims may be eligible to receive other types of financial compensation as well. An experienced car accident attorney can advise you and analyze the details of your particular case.

How much is my car accident worth?

There’s no set dollar amount when it comes to car accident claims in New York. Similar accidents might be worth dramatically different amounts. Many different factors come into play when determining the value of a car accident claim. Only an attorney can tell you what your claim is worth.

How much time do I have to file a lawsuit in New York?

New York has a strict deadline for taking legal action in cases involving car accidents. This deadline is known as the statute of limitations. In New York, this deadline is three years from the date of your car accident. That means you must file a lawsuit seeking damages (financial compensation) no later than three years from when your accident took place. This deadline can be found in New York Civil Practice Laws & Rules, Article 2, Section 214.

Filing a car accident lawsuit can be a very complicated, confusing process. An experienced New York car accident lawyer can help file a lawsuit on time and work with you to build the strongest possible legal case.