When involved in a no-fault car accident in New York, you can generally expect a settlement of up to $50,000 to cover medical expenses and lost wages. This amount is provided under New York's no-fault insurance system, which ensures that your own insurance company pays for these costs regardless of who was at fault in the car accident.
But what if your injuries are severe, and affect your quality of life?
No-fault coverage does not cover non-economic damages like pain and suffering, unless your injuries meet New York's "serious injury" threshold. Understanding when and how you can step outside the no-fault system to seek further compensation is crucial.
In this blog post, you'll learn how much you can expect from a no-fault car accident settlement in New York, when and how to step outside the no-fault system to seek further compensation, and how a personal injury lawyer can get you the justice you deserve.
To learn more about your rights after a car accident, call 212-268-3222 or contact us online for a free lawyer consultation.
What Is No-Fault Insurance?
For car accident cases in New York state, the no-fault insurance law means that every car insurance company will pay up to $50,000 in economic losses for car accident victims, regardless of who was at fault in the car crash.
When drivers register their vehicle in New York City or upstate New York, they must provide proof of finances or hold a no-fault insurance policy with a minimum of $50,000 coverage for each person injured.
According to the no-fault law, all car accident victims with injuries can apply for the benefits of a no-fault insurance policy without needing to determine liability and negligence in the auto accident.
However, whenever victims suffer serious injuries and/or motor vehicle damage in New York, they can still file a lawsuit against the at-fault driver. In these cases, the help of an experienced car accident lawyer can benefit the plaintiffs.
What's Considered A “Serious Injury” In New York?
The no-fault insurance law in New York allows you to make an exception. In the case of a serious injury, the victims can go outside the no-fault policy to recover more compensation. However, what will qualify as a serious injury based on the no-fault law when filing a car insurance claim?
One of the most straightforward ways to determine the seriousness of an injury relates to your total medical expenses. For example, if the total amount to diagnose and treat your injuries goes beyond $25,000, you can file a lawsuit to get the entire compensation for your injuries, property damage, and non-economic damages.
However, the maximum amount in an auto accident claim cannot reach more than the at-fault driver’s insurance coverage total. For example, if their car insurance policy provides $100,000 maximum fault benefits to the victim, that’s the total amount the plaintiff can seek in court.
Besides the very basic definition here, there are numerous other classifications for a “serious injury.” For example, you can file a wrongful death lawsuit in Staten Island whenever a personal injury results in death.
Other classifications of serious injuries include:
- An impairment of a non-permanent type that prevents daily tasks for at least 90 days during the first 180 days after an accident
- Dismemberment
- A significant disfigurement
- Loss of a fetus
- A fractured limb
- Permanent limited use of a body organ
- Permanent loss of body organ or system use and function
- Significantly limited use of a body function
Can You Sue for Pain & Suffering Under New York’s No-Fault System?
Based on the no-fault policy in New York state, can you sue for pain and suffering after a major car accident?
With the help of a car accident attorney at Raphaelson & Levine, you can file a lawsuit for pain and suffering. However, the victim must prove that the claim meets the requirements for a serious injury.
Essentially, the plaintiff will need to move outside the no-fault law to sue for pain and suffering. Start to recover monetary losses for pain and suffering after a car crash in Manhattan, Brooklyn, or another part of NYC by proving the injuries are serious based on state law. A permanent injury is one example.
The eight factors outlined above, along with wrongful death, can qualify one as facing a serious injury. You can sue for pain and suffering as part of your lawsuit against the auto insurance company, as long as you meet one of the nine elements of a serious injury definition.
What Happens When You File A Car Accident Lawsuit?
To file a car accident lawsuit, most people will hire an experienced lawyer and ensure a beneficial attorney-client relationship. Your car accident attorney will help you file the lawsuit before the statute of limitations expires and will handle all aspects of your car accident case so you can focus on your recovery.
If facing a serious injury, you can file a lawsuit outside of the no-fault policy in New York. What type of compensation or settlement will you likely receive from the car insurance company? Can you also file for compensation under the no-fault policy?
If you had minor injuries, how much can you expect from a no-fault car accident settlement in New York? We answer these questions below.
Under the no-fault policy in New York, you can expect the car insurance settlement to reach no more than $50,000 to cover medical bills and up to 80 percent in lost wages. You should first file for compensation under the no-fault policy, which covers health care costs and a loss in wages.
The victim’s car insurance company may cover as much as $50,000 under the no-fault policy. However, that maximum of $50,000 cannot cover non-economic damages, such as pain and suffering or loss of happiness and enjoyment in life.
If you have a serious injury from a car crash, it's possible to file a personal injury lawsuit and seek a settlement. An experienced New York car accident attorney can help one negotiate a fair settlement with the car insurance company of the at-fault driver.
Car insurance companies use specific formulas when deciding on settlement amounts. Often, that includes using a multiplier to calculate those non-financial damages like pain and suffering. The multiplier ranges from 1.5 to 5 and multiplies the medical fees. That multiplied amount is added to the medical costs and income loss.
Usually, the multiplier ends up at a 2 or 3. It can reach a 5 when a victim has life-changing, permanent injuries. Therefore, if your medical costs reach $50,000, you may be able to get an additional $100,000 in damages for your pain and suffering.
The factors influencing the overall payout include the extent of your injuries, total medical fees, and the liability showing which driver is at fault.
How Long Do I Have To File A No-Fault Injury Claim In New York?
The statute of limitations to file a no-fault injury claim in the state of New York is three years from the date of the car accident. Three years is the limit every adult victim has, which means they can’t delay reaching out to a personal injury attorney.
However, New York state law does have exemptions for minors when it comes to the statute of limitations. If the injured one is a child, that child has three years until after his or her 18th birthday to file a lawsuit.
Another important point to remember is that you shouldn't delay getting treatment after the accident. That way, medical providers can see what type of injuries occurred immediately after the collision. The more time that passes, the more likely another reason could have led to injury progression.
If too much time passes, fewer witnesses may be able verify exactly what occurred during the accident. Once you’ve gotten treatment, it's imperative to speak with a personal injury lawyer who will properly document your property damage, lost wages, bodily injury, and medical bills.
How Much Is My No-Fault Claim Worth?
In New York, a no-fault car accident settlement is primarily capped at $50,000 for economic losses, which includes medical expenses and lost wages.
This coverage is provided through the no-fault insurance system, and ensures all accident victims can get no fault benefits regardless of who caused the accident.
This means a no-fault insurance claim does not consider liability or the severity of injuries for the basic coverage.
Personal Injury Protection (PIP) plays a crucial role in the no-fault insurance system.
Here’s how it works:
- Mandatory Coverage: PIP is mandatory in New York and provides a minimum coverage of $50,000 per person for injuries resulting from a car accident. This coverage is designed to ensure that individuals receive prompt medical treatment and compensation for economic losses without the need to establish fault
- Coverage Details: PIP covers medical expenses, lost wages, and other reasonable and necessary expenses related to the injury, such as transportation to medical appointments. It also includes death benefits. Specifically, PIP can cover up to $2,000 per month for lost wages, subject to the overall $50,000 limit
- No-Fault System: Under New York’s no-fault system, PIP benefits are available to the insured regardless of who caused the accident. This system aims to reduce the need for litigation and ensure that victims receive necessary financial support quickly
- Serious Injury Threshold: If injuries are severe and meet the state's "serious injury" threshold, which includes conditions like dismemberment, significant disfigurement, or permanent loss of use of a body organ, the injured party may step outside the no-fault system to pursue additional compensation through a personal injury lawsuit
When To Pursue Additional Compensation With A Car Accident Lawsuit
If your economic losses exceed the $50,000 threshold, or if you suffer a "serious injury," you may qualify for additional compensation through a personal injury lawsuit.
The main factors to consider include:
- Economic Losses Past $50,000
- Serious Bodily Injuries
- Income Loss
Note: Liability and the recklessness of the at-fault driver are not factors in no-fault claims but become relevant in personal injury lawsuits.
Economic Losses Past $50,000
If your economic losses exceed the no-fault limit, you may file a claim against the at-fault driver's insurance for additional compensation.
Serious Injuries
A permanent injury can also greatly impact the value of car accident settlements. To seek compensation beyond the no-fault limit, your injuries must meet New York's "serious injury" threshold, which includes significant disfigurement, fractures, or permanent loss of use of a body organ or member.
Other possible injuries include:
- Brain injuries
- Spinal cord injuries
- Amputations
- Paralysis
- Severe burns
- Disfigurements
If your injuries make it impossible to work, and/or lead to a permanent disability, you may be awarded a larger motor vehicle accident settlement.
Loss In Wages
Wage loss is another factor that will impact the overall settlement amount. A major injury or multiple injuries will keep workers away from their jobs or may even lead them to lose their positions if they’ve become disabled.
Lost wages are covered under the no-fault policy up to the $50,000 limit. If your income loss exceeds this amount due to a serious injury, you may seek further compensation through a lawsuit.
The settlement should help one gain back these wages, but the attorney and plaintiff will need to gather documents to present to the insurance company to prove income loss. One may need a letter from the employer and payroll paperwork.
Fault/Liability For The Car Crash
Was the at-fault driver intoxicated by alcohol or taking drugs when driving? Was the driver very tired and sleepy when driving? You’ll need to figure out the exact reckless factors that led to the car crash and the full liability of the at-fault driver. It is also vital to understand how much of a role both parties played in the auto accident.
In a personal injury lawsuit, the liability and recklessness of the driver may be used to value the car accident claim settlement.
Are New York Car Accident Settlements Taxable?
Most compensatory damages from car accident settlements are not taxable if they relate to physical injuries, but there are specific exceptions, like punitive damages and interest, which are taxable. Additionally, emotional distress damages are taxable only if they are not connected to a physical injury.
Learn More About Your Legal Options After a Car Accident in New York
Being involved in a car accident is a stressful and overwhelming experience, especially when you’re dealing with injuries and mounting expenses. While New York’s no-fault insurance system is designed to provide quick relief, the process can still be complicated and confusing.
Working with the best New York car accident lawyer with experience investigating, documenting, and negotiating car accident claims can make a big difference in the value of your accident settlement.
Don’t let the stress of the accident and the claims process take a toll on your recovery. Contact a qualified attorney at Raphaelson & Levine Law Firm who will advocate for your rights and help you secure the financial support you need to move forward.
Next Steps: Call 212-268-3222 or contact us online for a free consultation.
