Car accident settlements are determined by a combination of a variety of factors. Some of the most important variables include the total amount of damages incurred, the insurance policy carried by each driver involved in the accident, and the liability laws of the state in which the accident occurred. These same factors can often affect not just the overall eligibility for compensation, but also the method for pursuing a fair payout amount. If you are wondering, “Do you always get a settlement from a car accident?”, consider speaking with an experienced personal injury attorney familiar with the no-fault auto insurance laws in New York State to discuss your situation. Call Stufano Law today at (914) 752-7746 to set up a free case evaluation.
What Is “No-Fault” Insurance?
According to the New York Department of Financial Services (DFS), drivers throughout the state are required to carry, at a minimum, the following types of auto insurance:
- Personal Injury Protection (also known as “no-fault” insurance)
- Liability
- Uninsured Motorists
The Insurance Information Institute (III) explains that the no-fault auto insurance system aims to reduce insurance costs by eliminating small claims from the courts. Under this system, each driver’s insurance pays for their minor injuries, regardless of fault. True no-fault states have mandatory personal injury protection (PIP) covering various expenses, with coverage limits differing by state.
Minimum PIP Coverage
In New York, the mandatory minimum for PIP is $50,000. Individual drivers are not required to carry PIP coverage beyond this amount. However, DFS explains that auto insurance providers – the companies that offer auto insurance policies to the consumer market – are required to offer certain optional add-ons to their customers, who can then choose to purchase additional PIP coverage under either of two frameworks.
Additional No-Fault Coverage
Consumers can purchase additional PIP coverage to increase their no-fault auto accident coverage to a total of $100,000 per claim (essentially doubling the required minimum). An important advantage of this type of coverage is that it will apply to any occupants of the insured automobile anywhere in the United States and even into Canada, meaning the coverage is valid even on road trips across the continent and will cover even passengers who are themselves from out-of-state.
Additional Basic Economic Loss Coverage
Auto insurance companies are required to offer another form of add-on insurance, known as Optional Basic Economic Loss coverage, or “OBEL.” Consumers who purchase this coverage extend the base limit of $50,000 for economic losses by $25,000, for a total of $75,000 of coverage. The person injured has the right to determine whether the coverage will be applied exclusively to covering wages lost as a result of their injuries, to apply an amount up to the same total to covering the costs of rehabilitative treatment specifically, or to apply the full amount for which they are eligible across all categories of their basic economic loss (BEL).
Implications of PIP Minimums for Car Accident Settlements
The PIP requirements under the state’s no-fault system for auto insurance ensure that in New York, at least, the answer to “Do you always get a settlement from a car accident?” is essentially yes – but if a driver’s insurance coverage only extends to $50,000 total per claim, then in cases of catastrophic injury or injuries that result in a need for long-term treatments or disability accommodations the available settlement may not always cover all of the individual’s expenses. An experienced New York personal injury lawyer with Stufano Law may be able to evaluate the circumstances of your accident and help you to understand whether you may be eligible to seek additional compensation to cover the costs associated with your injuries.
Liability Insurance Coverage in New York
PIP coverage is designed for “first-party” claims – the individual who holds the insurance policy files the claim with their own insurance provider. Liability auto insurance is a type of policy with which drivers from at-fault states may be more familiar; this is the type of insurance that provides payouts on behalf of an at-fault driver, to the other parties injured in the accident.
New York Liability Insurance Minimum Requirements
Like PIP, liability auto insurance policies in New York are subject to state minimum requirements, which for liability policies are delineated in Article 6 of the Consolidated Laws of New York. The minimum coverage requirements are categorized into per-accident (minimum) total compensation for:
- Any one person in any one accident, subdivided according to whether the bodily injury resulted in death
- Any two or more people in any one accident, again subdivided according to whether any person died as a result of injuries sustained in the accident
- Total for property damage resulting from any one accident
Liability Insurance Settlements From Car Accidents in New York
The minimum coverage that New York drivers are required to carry, and that insurers are required to offer in their policies, will not necessarily be the amount that an accident victim receives as a settlement. An at-fault driver’s insurance provider may argue, for instance, that the total damages listed by an accident victim on their liability insurance claim are excessive. In this case the at-fault party’s insurance company may offer the accident victim a settlement, but the settlement amount the insurance company lists in its first offer may be less than the victim’s total losses. Navigating the process for negotiating liability auto insurance claims is one of the most common reasons for car accident victims to retain the services of a personal injury attorney.
Work With an Experienced New York Personal Injury Law Firm
If you have been injured in a car accident, you have likely suffered significant losses. If you were not personally at fault for the accident, and your own PIP coverage does not completely cover the costs associated with repairing and replacing your vehicle, seeking and maintaining appropriate medical treatment to address your injuries, and any wages you lose during time off from work during your recovery – or, in a tragically common scenario, wages you may lose over the next several years due to decreased earning ability resulting from your injuries sustained in the accident – then you may be able to file a claim with the at-fault party’s liability insurance provider to ensure that you are compensated fairly for those damages.
Many car accident victims wondering, “Do you always get a settlement from a car accident?” find it helpful to work with a seasoned personal injury lawyer as they navigate the claims process. The Stufano Law team is experienced in handling New York auto accident cases and will be happy to discuss your options with you in a free initial consultation. Call our office at (914) 752-7746 today to get started.
