After a car accident in New York, an individual’s first priority should be to get the medical treatment they need for their injuries. They should call 911 if they need an ambulance to report to the scene and possibly transport victims to the nearest emergency room. At the scene of an accident, if it is possible, an individual also wants to collect information from the other driver or drivers who were involved.
An individual who has been involved in a car accident also wants to call law enforcement to respond to the scene, even if the accident seems minor. First of all, law enforcement prepares a collision report on the scene that can help with insurance claims and lawsuits later.
In addition, they can make sure that the other driver or drivers give an individual all the necessary information about their identity, their car, and their insurance coverage and that the information is accurate.
When it is safe and feasible, an individual should call their own auto insurance company first to inform them of the accident. They want to do this on the day of the accident or as soon after it as possible.
A driver’s auto insurance company is legally obligated to investigate any accident that the driver reports. They need to know the facts about what happened and what evidence is available. A driver and their auto insurance company need to be prepared for the other driver to wrongly accuse the driver of causing the accident even if they did not. An individual may want to ask a lawyer about the role that auto insurance companies play in investigating an accident.
In New York, an individual’s insurance provider has a duty to act towards them with good faith and fair dealing. An insurance company should give their insured every benefit that their insurance policy promises them.
It is important to note that New York is what is referred to as a “no-fault” auto insurance state. This means that a driver’s own auto insurance company must pay for the losses their insured suffers from physical injury in a car accident regardless of whose fault caused the accident. The driver whose negligence caused the accident is responsible for compensating for the property damage, e.g., the cost of repairing damaged vehicles.
The minimum coverage that a driver must have to drive a vehicle in New York is as follows:
- $10,000 for property damage for a single accident
- $25,000 for bodily injury per person
- $50,000 for the death of an individual who was involved in an accident that the insured driver caused
- $50,000 for bodily injury for a single accident; the total to compensate all individuals who are injured.
Generally, the total compensation for medical care, lost wages, and other costs associated with injury sustained in a car accident is $50,000. Drivers in New York can buy additional coverage under their insurance company’s no-fault coverage, but this is not mandatory.
Unfortunately, there are cases in which the amount of $50,000 is not adequate compensation for an individual or individuals who sustain serious injuries that require extensive medical care and cause them to miss work for treatment and recovery.
When an individual’s economic losses due to injury are more than the policy limits of their auto insurance policy, the driver is responsible for paying the rest out of their own pocket.
Many seriously injured people consider filing a personal injury lawsuit against the other driver if another driver’s negligence caused the accident, because their own coverage does not provide adequate compensation.
Another significant feature of an individual’s own personal injury protection (PIP) in New York is that it does not compensate them for non-economic damages such as pain and suffering or emotional distress.
If an individual has health insurance, it will probably pay at least some of the cost of their medical care after their insurance coverage has been exhausted. However, private insurance, Medicare and Medicaid have limits on the amount they pay for such claims.
In addition, if an individual pursues a personal injury lawsuit against a negligent driver and it is successful, health insurance carriers may demand to be reimbursed from the damages award for the share of medical treatment for which they paid.
If an individual thinks that their auto insurance company is not treating them fairly in connection with compensating them for losses related to injuries from a car accident, they would contact a New York lawyer for advice as to how to proceed.
When it comes to property damage, the auto insurance company of the driver whose negligence caused the accident must compensate others whose property was damaged, i.e., mainly other drivers whose cars were damaged.
What Are Some Examples of Auto Insurance Conflict?
Generally, a driver or someone else injured in a car accident may develop a conflict with an auto insurance company, their own or that of another driver whose negligence caused an accident, because they believe that they are entitled to more in compensation for their losses than an insurance company wants to pay them.
For example, more than one driver can be responsible for causing an accident. They are comparatively negligent. In a case such as this, the other driver can file a claim against one driver and that driver can make a claim against the insurance of the other driver.
Under New York personal injury law, a dispute can develop about the degree of each driver’s responsibility. Each driver and each auto insurance company has an interest in minimizing their own degree of responsibility, and the evidence may be such that it is difficult to specify each driver’s share in numbers.
How Does Car Insurance Work When I Am Not at Fault?
As noted above, New York is a no-fault insurance state. This means that an individual’s own insurance company pays to compensate them for economic losses related to their injury up to $25,000 per person and $50,000 per accident. This would include the cost of medical care and lost wages.
The insurance company of the driver who is at fault pays for the property damage with the limitations noted above.
Or, if the driver at fault does not have insurance or cannot be identified and located, the victim would hopefully recover from their own uninsured/underinsured motorist coverage, as noted below.
If you have specific questions, you should contact a lawyer who can help with car accident insurance claims.
What Happens if the Person at Fault in an Accident Has No Insurance?
An individual’s auto insurance policy in New York should include what is called “supplementary uninsured/underinsured motorist coverage” (SUM). This mandatory insurance coverage requires all drivers to carry minimum auto insurance liability coverage of $25,000 per person and $50,000 per accident for bodily injury, plus $10,000 for property damage.
Unfortunately, as with standard personal injury coverage, these amounts can be quickly reached in serious accidents. This can leave victims with expenses for medical care that remain uncompensated.
Experts tell us that 1 in 6 drivers do not have any insurance at all. Most people would not be able to compensate others whom they injure or to whom they cause damage if they do not have auto insurance. So, it is important to have SUM coverage. If an individual is injured by an uninsured or underinsured driver, they may then still collect compensation for their losses from their own insurance company.
SUM coverage pays when another driver does any of the following:
- Is at fault in causing an accident but does not have any auto insurance
- Is at fault in causing an accident but does not enough insurance coverage to fully compensate others for their losses
- Is at fault in causing an accident but flees the scene and can never be identified and located.
A driver who can afford more than the minimum amount of SUM coverage may well want to get coverage with policy limits that are higher than the minimum.
Auto insurance coverage and which company pays what to whom is quite complex. It can be challenging to know which car accident insurance claims to pursue.
An individual whose claim is not a simple one that is solved by turning to their own insurance for personal injury protection and another driver for property damage coverage, definitely wants to ask a lawyer for guidance if the other driver is uninsured or if they need more compensation than their own policy coverage provides.
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What Should I Know About Suing My Auto Insurance Company?
If a person believes that their insurance company has rejected a legitimate claim they have submitted and has done so in bad faith, they may file a lawsuit against the company.
In New York, a person would allege breach of contract and insurance bad faith. As for breach of contract, the contract is the insurance policy. If the insurance company fails to provide the coverage that it is obligated to provide under the provisions of the policy, they have breached the contract.
As for insurance bad faith, again, an insurance company owes their insureds a duty of good faith and fair dealing. A covenant of good faith and fair dealing is implied in every policy of insurance. If they breach this covenant, they can be liable for damages. This would be a tort claim and the insured would be able to seek both economic and non-economic damages.
The covenant of good faith and fair dealing requires an insurance company to pay claims unless they have a valid reason not to pay it or to pay an amount that is less than what the insured thinks they are owed. An insurance company should not deny or delay decisions on claims.
An insured who is the victim of insurance bad faith could recover the original amount they were due for their claim that was wrongfully denied. They would also be entitled an amount for emotional distress, other economic losses, and in cases in which the insurance company’s conduct was especially egregious and reprehensible, punitive damages.
The statute of limitations in New York is 6 years for a tort claim of bad faith. The statute begins to run when the incident of bad faith takes place.
Do I Need a Lawyer for Car Insurance Issues?
If you have a dispute with an insurance company, you want to consult a New York insurance attorney. LegalMatch.com can connect you to an attorney who can review the facts of your situation and the insurance policies involved. They can negotiate a settlement, or failing that, guide you through the process of filing a lawsuit.
Or, if you have been injured in a car accident and want advice about how to deal with your insurance company and those of any other drivers involved, you, too, want to talk to a New York insurance attorney. Often, having an attorney from the beginning of the claim process can lead to a quicker resolution than might otherwise be possible.
