As your accident lawyer in New York, we understand that a car accident can be a life-changing event. Following the accident, when the bills and lost income pile up, you would want to seek compensation for your injuries. In New York, when you meet with a car accident, you can claim compensation through your insurance policies. However, when the accident is serious and your injuries are significant, your insurance policy and no-fault benefits may not be enough. That being the case, the team at Alex Yadgarov & Associates will be looking at situations where no-fault benefits may not be enough and what you can do to pursue additional compensation.
What are the limits of no-fault benefits?
When you are injured in a car accident in New York, the compensation for the accident is first handled through insurance. Under your Personal Injury Protection (PIP) coverage, you can claim compensation for medical costs, about 80% of lost income, and other relevant expenses. As New York is a no-fault state, a person is entitled to this compensation, no matter their fault in the accident.
In New York, your PIP coverage is limited to $50,000. At the same time, your PIP insurance will only cover the economic damages we’ve mentioned above. That means you will not be able to claim additional compensation for non-economic damages such as pain and suffering and emotional distress.
When do no-fault benefits fall short?
As we’ve mentioned above, no-fault insurance is your first step to compensation. However, there will be situations where no-fault benefits fall short. Here are some of the reasons no-fault compensation can feel underwhelming or not have the desired effect.
- Low policy limits – The mandatory minimum PIP coverage in New York is $50,000. This amount is rarely sufficient to cover the medical and long-term recovery costs connected to serious crashes.
- No compensation for non-economic damages—Your PIP coverage will only cover economic damages. You cannot rely on it to compensate you for non-economic damages such as pain and suffering and emotional distress.
- Limited lost income coverage—While PIP allows you to recover around 80% of your lost earnings, the monthly amount is capped at $2000, making it inadequate for high-income earners affected by the accident.
- Strict time limits—You must file your insurance claim within 30 days of the accident. Missing this deadline can result in your claim being rejected.
- Exclusion of certain victims—Motorcycle riders and certain groups of passengers are excluded from no-fault coverage, making them ineligible for a financial lifeline.
What are your options for compensation beyond no-fault insurance?
When insurance compensation is not enough, you can file a lawsuit to claim additional compensation. In New York, if you want to file a personal injury lawsuit, you must prove that you have suffered a “serious injury” or that your basic economic damages exceed $50,000. Article 51 of New York State Insurance Law defines what counts as a “serious injury,” and as your New York car accident lawyer, we can help you prove it and build your case.
Through a personal injury lawsuit, you can claim as much as you need, accounting for both economic and non-economic damages. However, keep in mind that this lawsuit must be filed within 3 years of the date of the accident. If you do not file a lawsuit within this time, you will lose the right to claim compensation.
It is also worth mentioning that if a car accident results in a death, the personal representative (executor) of the deceased’s estate can file a wrongful death lawsuit on behalf of the family. The statute of limitations gives a time of two years from the date of death to file the lawsuit.
See also: Why Speaking to an Insurance Adjuster Without Legal Advice Can Harm Your Case.
Conclusion
When you are the victim of a serious car accident, you may need to go beyond no-fault benefits to get the compensation you need. In this endeavor, you will need the support of the best car accident lawyer in NYC. Over the years, the team at Alex Yadgarov & Associates has had the privilege of helping thousands of New Yorkers with their car accident claims. We will be at your side from start to finish, fighting the good fight, helping you get the compensation you deserve. Your first step to moving forward begins with Alex Yadgarov & Associates. Get in touch with us today and schedule your free consultation.
