Everything you need to know about recovering compensation in a NYC car accident
As the “City that Never Sleeps,” There’s always something going on in New York City, which means that vehicles are constantly on the road. While this doesn’t mean you’re destined to be involved in a car accident, it can increase your chances of it happening.
If you’re involved in an auto accident, you probably have questions about compensation. Recovering compensation after a NYC car accident usually isn’t too complicated. However, there are steps you need to follow to ensure the process goes as smoothly as possible.
How no-fault insurance rules can affect compensation
New York is one of about 12 states that follow no-fault insurance guidelines, which doesn’t mean no one is to blame for causing a vehicle accident. There are still victims and at-fault drivers.
What no-fault insurance means is you file a claim with your insurance provider after a car accident. This applies even if you’re not the one responsible for causing the accident, which is known as a first-party claim and it’s a step you can’t skip if you’re seeking compensation for your damages.
You may hear no-fault insurance referred to as personal injury protection (PIP). Regardless of the name, it’s the same type of insurance. Your PIP policy covers your medical expenses, any lost wages, and property damage costs. If you’re considering claiming non-economic damages like pain, suffering, and loss of life enjoyment, you need to wait until you settle your first-party claim.
How much can you receive in compensation from your PIP policy? The answer depends on the caps. All PIP policies have caps and your compensation amount can’t exceed the cap. At a minimum, all drivers with vehicles registered in New York state must carry at least:
- $25,000 in personal injury protection (PIP) insurance per person in the vehicle
- $50,000 in wrongful death protection
- $10,000 to cover property damage
These are the state’s minimum insurance requirements. You can carry additional coverage to increase the amount of your insurance cap.
What happens if your damages exceed your insurance limits
Even if you’re carrying more than the state’s minimum insurance requirements, there’s a good chance your damages will still exceed the policy’s cap. So, does this mean you’re responsible for covering the remaining damages? The answer is both yes and no.
Legally, regardless of the status of your car accident claim, you’re responsible for any bills stemming from your vehicle collision. This includes your medical costs and these can quickly add up, even if your injuries are relatively minor.
If you can’t afford your medical costs, there may be a temporary solution while you’re waiting to settle your accident claim. You may be able to take out a medical lien. However, the lien is due when you receive your compensation check. The amount of the lien is deducted from your settlement before you receive the rest.
Okay, so you can stay ahead of your medical expenses, but what happens if your insurance isn’t enough to cover your damages? This is when you turn to the at-fault driver’s insurance. You can file a third-party claim to recover the remaining damages.
Since you’re basically starting the claim process all over, you shouldn’t expect to receive the second settlement check in a few days or even weeks. Sometimes, it can take months to settle a third-party insurance claim and this is if the case doesn’t turn into a lawsuit in civil court. This can further delay the settlement process.
Can you receive compensation if you’re partially at-fault for a car accident
New York also follows comparative negligence rules. Under comparative negligence guidelines, more than one party can be liable for an accident.
As long as you’re not more than 50% responsible for the accident, you can file a third-party insurance claim. Comparative negligence doesn’t affect your first-party claim, which is the initial claim you file with your insurance provider.
However, your percentage of fault will reduce your third-party compensation amount. For example, if you’re assigned 25% of the blame and your compensation amount is $100,000. Your check will be for $75,000.
What happens if you’re assigned 51% of the blame for an accident? If you’re found to be 51% or more responsible for an auto accident, you can’t file a third-party insurance claim. You’re stuck relying on your PIP insurance to cover your damages.
How do you determine the value of a car accident claim
Before you can receive compensation, you need to know the value of your accident claim. Thankfully, this usually isn’t too complicated. A good place to start is with your economic damages. You can calculate your non-economic damages next.
Your economic damages are your medical expenses, property repair or replacement costs, and any lost income. If your injuries prevent you from returning immediately to work, you can claim the lost wages. These items are covered by your PIP insurance up to the policy’s cap.
If you’re planning on claiming non-economic damages like pain and suffering, you need to file a third-party claim against the at-fault driver’s insurance provider. PIP doesn’t cover non-economic damages. Determining the value of your non-economic damages can be tricky but you can use either the per diem or multiplier methods. Which method is best for your claim often depends on its value.
To help keep the claim process moving along, you may want to calculate your non-economic damages using both methods. This way, the insurance company has a couple of options to consider and this can help make negotiations go a little more smoothly.
What happens if the driver is uninsured
Even though New York requires all drivers to at least meet minimum insurance requirements, not everyone follows the law. Your PIP insurance will still cover some or all of your damages, regardless of the status of the at-fault driver’s insurance.
If you still have outstanding expenses, you can file a lawsuit against the at-fault driver. The downside is that even if you win the lawsuit there’s no guarantee the defendant will be able to pay compensation.
Receiving compensation after a NYC car accident
Whether you’re filing a first-party or third-party insurance claim after a car accident, it’s wise to work with an experienced attorney. Your attorney can help ensure you receive compensation, even if you’re partially to blame for the accident.
With their expertise guiding your case along the way, you can easily navigate the complexities of the claims process more effectively and secure the best possible outcome.