The average settlement for a no-fault car accident in NY is usually under $50,000. That’s because no-fault insurance policies in New York typically cover up to $50,000 in medical expenses, lost wages, and other costs related to your accident and injuries.
If your injuries are severe, you may be able to seek much greater compensation through a personal injury lawsuit. You could potentially see a settlement in the millions of dollars. However, you must meet specific criteria to sue another driver after an accident in New York.
Our Long Island car accident lawyers can review the circumstances of your case, advise you on what steps to take next, and represent you in a lawsuit if necessary. Our legal team has more than 100 years of combined experience. Call today for your free consultation.
What Is No-Fault Insurance?
In many states, recovering compensation after a car accident means filing a claim with the other driver’s insurance policy. Those states are called at-fault or tort states. New York and a few other states instead use a no-fault structure for settling auto insurance claims.
No-fault insurance means your own auto policy pays for medical bills, lost wages, and related expenses after a crash, no matter who caused the accident. Motorists are required to carry personal injury protection (PIP) on their policies to cover these costs.
It covers you, your passengers, and often pedestrians involved in the accident, but it doesn’t cover damage to your car or compensation for pain and suffering. And, because it is capped at $50,000 in most cases, sometimes it isn’t enough to cover your damages after a car accident.
What Determines Your Settlement in a No-Fault Car Accident in NY?
New York’s no-fault insurance covers certain accident-related expenses, but not everything. The amount of your settlement will depend on the extent of your injuries and your accident-related expenses. No-fault insurance in New York typically pays for:
- Medical Treatment: Covers all reasonable and necessary medical and rehabilitation expenses, including doctor visits, hospital stays, surgeries, medications, and physical therapy.
- Lost Wages: Reimburses 80% of lost earnings, up to a maximum of $2,000 per month for up to three years from the date of the accident.
- Out–of–Pocket Expenses: Provides up to $25 per day for up to one year to cover reasonable and necessary costs such as transportation to medical appointments, household assistance, or childcare services you’re unable to perform due to your injuries.
- Death Benefit: In the event of a fatal accident, a minimum of $2,000 is paid to the deceased person’s estate to help cover funeral and burial expenses.
This coverage applies to drivers, passengers, and often pedestrians, but not to vehicle damage or pain and suffering. If your damages exceed the no-fault limit, you may have additional legal options, depending on the severity of your injuries.
Can My Insurance Company Deny My No-Fault Claim?
Yes, your no-fault insurance claim can be denied by your insurance company. Common issues include missed deadlines, incomplete forms, or questions about the necessity of your treatment. Review your letter to understand why your insurance company has taken this action.
Contact your insurer to clarify the denial and submit missing information. If unresolved, file an internal appeal as per the insurer’s procedures. Sometimes, you can contest no-fault denials through arbitration with the New York State Department of Financial Services.
If you encounter resistance when filing your claim, contact our legal team. We will help you understand the denial, file an appeal, and represent you in court.
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Can You Sue Another Driver for a Car Accident in New York?
To seek damages above and beyond what your no-fault insurance covers means filing a lawsuit. Per New York Insurance Law § 5102(d), you must meet a specific legal definition for what constitutes a serious injury to be eligible to sue for non-economic damages. Examples include:
- Broken bones
- Significant disfigurement
- Permanent loss of use of a body part or system
- A medically determined injury or impairment that prevents you from conducting your usual daily activities for at least 90 out of the first 180 days after the accident
If your injury meets one of these criteria, you may be able to file a lawsuit against the at-fault driver. If not, your compensation is generally limited to what your no-fault policy provides, even if the other driver clearly caused the accident.
Do You Need an Attorney for a No-Fault Car Accident in NY?
The average settlement for a no-fault car accident in New York is often under $50,000 because New York is a no-fault state. Unfortunately, your damages could be much more than that. If so, our attorneys can help you understand what to do next.
Our legal team will review and calculate your medical expenses, lost wages, and other losses to determine if legal action is necessary in your auto accident case. We will negotiate on your behalf for the car accident settlement you deserve, and represent you in court if necessary.
Levine And Wiss has recovered millions of dollars for injured accident victims in New York. Call today for your free consultation and tell us what happened.
