Getting into a car accident in New York can be a stressful experience, and the situation can get a lot more stressful when it involves uninsured drivers. Although New York law requires all drivers to carry auto insurance, not everyone plays by the rules. If you are injured by an uninsured driver, what can you do to account for all your losses?
Fortunately, New York’s laws give injured parties multiple options to choose from in recovering compensation in these situations. In this post, we will use our experience as a car accident lawyer in NYC to break down New York’s no-fault insurance, uninsured motorist coverage, and the alternative paths you can follow to seek compensation.
Understanding New York’s No-Fault Insurance
When a car accident occurs in New York, it is covered under the state’s ‘no-fault’ insurance scheme. This means that anyone injured in a car accident can call on their own insurance company to cover costs such as medical bills, loss of income, and other reasonable expenses to a certain extent. According to the New York DMV, the basic no-fault auto insurance coverage should include:
- A reasonable and necessary accident-related medical and rehabilitation expenses, awarded in accordance with an established fee schedule.
- Coverage of 80% of lost wages, up to $2000 per month for up to three years from the date of the accident, with deductions for state disability, workers’ compensation, and Social Security benefits.
- Up to $25 per day for up to one year from the accident to cover necessary costs such as household help and transportation for medical treatment.
- A $2000 death benefit, in addition to the $50,000 basic No-Fault limit, to be paid to the estate of the deceased.
However, the term ‘no-fault’ is something of a misnomer since a person will not be eligible for no-fault benefits if they were:
- Driving under the influence, except for emergency health-related services performed in a general hospital or by an ambulance worker outside of a general hospital. However, the insurer has the right to recover the full amounts from the injured party if they are convicted of a DUI.
- Intentionally causing their own injuries.
- Riding an ATV or a motorcycle as an operator or passenger. However, a pedestrian struck will be covered under no-fault insurance.
- Injured while handling a stolen vehicle.
- An owner of an uninsured vehicle.
What is Uninsured Motorist (UM) Coverage?
As the name suggests, an uninsured motorist coverage provides financial protection for those that are injured by uninsured motorists. In New York, this coverage is often bundled with the standard auto insurance coverage policy. However, you can also purchase a separate UM coverage with higher limits. Such UM coverage can be used to cover medical bills, lost wages, and certain non-economic damages that go beyond the protection of no-fault insurance.
What are Your Options for Recovering Damages?
Apart from no-fault insurance, there are primarily two other options you can call upon to recover damages from car accidents in New York. They are an application to the Motor Vehicle Accident Indemnification Corporation (MVAIC) or filing a lawsuit in the court of relevant jurisdiction.
MVAIC
MVAIC is a non-profit organization established under New York Insurance Law “to provide the highest level of support, assistance, and compassion to the victims of motor vehicle accidents, their families, and their representatives.” It is a possible safety net you can rely on if you don’t have your own insurance coverage. However, to be eligible for MVAIC help, you must fulfill certain criteria, including showing that you have no other insurance resources available to you.
Lawsuits
You can hold the uninsured driver personally responsible with a lawsuit with the help of a personal injury law firm in NYC. If you prove that the uninsured driver was negligent, you can file a personal injury lawsuit. Alternatively, if the car accident resulted in a death, the executor of the deceased’s estate can file a wrongful death lawsuit on behalf of the surviving family members of the deceased.
In all three cases, the general aim is to recover compensation under two main categories of damages. They are:
- Economic damages such as medical expenses, loss of earnings, and any damage to property, which accounts for all tangible and determinate financial losses; and
- Non-economic damages to cover intangible, subjective losses. These can include pain & suffering, emotional distress, loss of enjoyment of life, and loss of consortium. However, no-fault insurance does not consider non-economic damages.
If the case goes to trial, punitive damages may also be awarded. However, this requires you to show that the party at fault acted egregiously. The purpose of punitive damages is to punish the at-fault party and potentially deter similar conduct in the future.
Conclusion
Being involved in a car accident can be a stressful experience, especially when uninsured drivers are involved. While New York law has multiple avenues through which you may claim damages, recovering these damages comes with its fair share of challenges. To overcome these challenges and maximize your compensation, we highly recommend you get in touch with a qualified and experienced car accident lawyer in NYC.
