Understanding Your Car Insurance After An Accident In New York
Being in a car accident is stressful enough without the added burden of deciphering complex insurance policies. If you’ve been injured in an accident in New York, understanding your car insurance coverage is critical for a smooth recovery process.
While you may think you have full coverage, New York’s laws and required coverage can be confusing. This article breaks down the essential information you need to know.
New York’s No-Fault Insurance System
New York operates under a no-fault car insurance system. This means that if you’re injured in an auto accident, you’ll first turn to your own car insurance policy to cover medical expenses and lost wages, regardless of who was at fault for the crash.
The no-fault system is designed to provide quick payment of medical bills and lost earnings without having to determine fault or go through lengthy legal proceedings.
Minimum Car Insurance Requirements in New York
In New York, drivers are required to carry a specific amount of car insurance to ensure financial responsibility in the event of an accident. The minimum requirements include:
- $50,000 in Personal Injury Protection (PIP) coverage
- $25,000 per person/$50,000 per accident for bodily injury liability
- $10,000 per accident for property damage liability
- $50,000 per person/$100,000 per accident for death liability
- $25,000 per person/$50,000 per accident in uninsured motorist bodily injury coverage
Let’s break down what each of these coverages means:
Personal Injury Protection (PIP)
PIP is the cornerstone of New York’s no-fault system. It provides coverage for medical expenses, lost wages, and other related costs if you’re injured in an accident, regardless of fault. The minimum required PIP coverage is $50,000.
PIP will cover:
- Medical and rehabilitation expenses
- 80% of lost earnings up to $2,000 per month for up to three years
- Up to $25 per day for up to a year for other reasonable and necessary expenses (like household help)
- A $2,000 death benefit
It’s important to note that PIP coverage has limits. Once you exhaust your PIP benefits, you may need to rely on your health insurance or pay out-of-pocket for ongoing medical care.
Therefore, it is highly recommended that you purchase Additional PIP (APIP) and Optional Basic Economic Loss (OBEL) to fully cover yourself.
Bodily Injury Liability
This coverage pays for injuries you cause to others in an accident where you’re at fault. The minimum required is $25,000 per person and $50,000 per accident. However, these limits can be quickly exhausted in serious accidents. We recommend carrying higher limits to protect your assets and also to enable you to purchase more Uninsured/Underinsured Motorist coverage..
Property Damage Liability
This covers damage you cause to other people’s property (usually their vehicle) in an accident where you’re at fault. The minimum required is $10,000, but again, this may not be enough to cover extensive damage to newer or luxury vehicles.
Uninsured/Underinsured Motorist Coverage
This protects you if you’re in an accident with a driver who either has no insurance or doesn’t have enough coverage to pay for your injuries. The minimum required is $25,000 per person and $50,000 per accident.
It provides relief beyond no-fault benefits when the responsible driver doesn’t have coverage, doesn’t have enough coverage, or flees the accident scene.
We can’t stress this enough. If you get into an accident and sustain catastrophic injuries, you will be extremely upset to find out that settlement proceeds are minimal. The BEST way to protect yourself in this situation is to purchase higher Uninsured/Underinsured Motorist Coverage. Speak with your insurance agent or broker.
Supplemental Spousal Liability Insurance
Starting in 2023, this coverage is automatically applied to all auto insurance policies unless policyholders request to decline or remove. This coverage provides bodily injury insurance to the at-fault policyholder’s spouse.
Additional Insurance Coverages To Consider
Collision and comprehensive coverage: This coverage pays for damages to the policyholder’s vehicle, regardless of who is responsible for the accident. While not required by law, these coverages are essential for protecting your vehicle and may be required by your lender if you have a car loan.
Don’t Be Caught Underinsured
Minimum car insurance requirements in New York often don’t provide enough coverage after a serious accident. To ensure you’re fully protected:
- Increase Coverage Limits: Talk to your insurance agent about raising your liability, PIP, and SUM limits.
- Review Regularly: Your insurance needs can change over time. Review your policy annually or after major life events.
- Seek Legal Guidance: If you’ve been in an accident, consult with an experienced car accident attorney. They can help you understand your rights and navigate the complexities of insurance claims.
Frequently Asked Questions
Question: I was injured in a car accident but I have no health insurance. Will my auto insurance cover my medical bills?
Answer: Yes, in New York, your auto insurance policy is required to include Personal Injury Protection (PIP). PIP covers medical expenses and some other costs related to your injuries regardless of who was at fault for the accident.
Question: The at-fault driver’s insurance company contacted me. Should I speak with them?
Answer: It’s generally advisable to consult with an attorney before speaking to the other driver’s insurance company. They may try to get you to accept a settlement that’s less than what you deserve.
Question: What are “serious injuries” under New York law?
Answer: New York law defines “serious injuries” as those that result in death, dismemberment, significant disfigurement, a fracture, loss of a fetus, permanent loss of use of a body organ, member, function or system, or a significant limitation of use of a body function or system. It’s important to speak to an attorney to understand whether your injuries may qualify.
Question: What should I do if I’m involved in an accident with an uninsured or underinsured driver?
Answer: If you’re in an accident with an uninsured or underinsured driver, your uninsured/underinsured motorist coverage will protect you. This coverage kicks in when the at-fault driver lacks sufficient insurance to cover your injuries or if they flee the scene. It’s important to review your policy to ensure you have adequate protection and consult with a legal expert to understand your options for compensation.
The Law Office of Jeena R. Belil, PC: Your Partner After a Car Accident
Car accidents can be overwhelming, but you don’t have to navigate the aftermath alone. The Law Office of Jeena R. Belil, PC is dedicated to protecting the rights of car accident victims on Long Island. Contact us today for a free consultation. We’ll fight for your rights and help you secure the compensation you deserve.