What to Expect from Car Accident Settlement in NY

What to Expect from Car Accident Settlement in NY 

When you've suffered a car accident, the journey toward settlement can seem confusing and daunting. Oftentimes, more questions than answers pop up. What will my insurance cover? What if my insurance doesn't cover everything? Do I need a lawyer?

Despite this, your focus is often geared toward important, controllable elements like recovery and finding a replacement car or mechanic. Sifting through legal jargon as you try to wrap your head around the process can overtake your evenings and leave you spiraling—but it doesn’t have to be this way. 

With your physical and mental well-being in mind, we've outlined everything to expect from a car accident settlement in NY. From average payouts to what a no-fault state is, keep reading for a breakdown of New York car accident settlements. Mighty's AI handles NY car accident claims as part of building your case file — applying the state-specific no-fault and comparative negligence frameworks automatically.

What is New York’s Average Car Accident Settlement? 

Unfortunately, average New York car accident settlement amounts tend to be inconclusive due to the specificity and unique situation in each car accident case. Side-swiping a car in a supermarket parking lot, for example, causes little physical and emotional damage when we compare it to an SUV running a red and hitting oncoming traffic. Both situations can necessitate legal action—yet the payouts can differ on the order of tens of thousands of dollars. 

If you want to determine what a fair settlement amount could look like in your case, consider the following: 

• Economic and non-economic losses suffered – These are measurable and unmeasurable losses caused by the motor vehicle accident. An example of an economic loss is the loss of wages whereas a non-economic loss is the loss of the ability to walk. 

• Documentation of fault and damages – Not only is it important to know how much each party was at fault, but to be able to prove it to insurance. Mighty's AI gathers and organizes this documentation in your case file — police reports, photos, witness statements, medical records, and damage documentation.

• State laws – State laws regarding settlements can vary widely. Below are three key facets of New York state law that will determine the settlement process and who will be funding yours. 

3 Key New York Car Accident Settlement Laws

Here are the three things you must know about a no-fault accident in NY. During the process of auto accident settlements (particularly in NY), you will run into:

1. Statute of Limitations 
2. No-Fault System
3. Comparative Negligence 

#1 Statute of Limitations 

You have three years from the day of the motor vehicle accident to file a legal case in New York state. This is the statute of limitations.

The statute of limitations applies to all different types of claims, though the time variable changes depending on the type of case. Note that this is the time you have to first file — if the case is filed and extends beyond three years, that's still acceptable. Mighty's AI tracks the NY statute of limitations for your case automatically.

Remember to familiarize yourself with the rules of the road in NYC and the process of filing an NYC car accident police report.

#2 New York’s No-Fault System

New York is one of several states that operate a no-fault car insurance system. This system has two main implications:

1. When there is an accident, both parties file a claim for injuries suffered with their insurance, regardless of who caused the auto accident.

2. Every car insurance policy from New York must come with personal injury protection coverage, also known as PIP coverage.

Will Personal Injury Protection Cover All of My Expenses?  

There is a minimum policy limit of $50,000 for personal injury policy (PIP), and you can gain more coverage by paying extra. PIP covers up to this amount of economic losses but does not cover non-economic losses. 

Your insurance will typically cover up to $50,000 of economic losses as long as you provide proof through documents or receipts. This is to give financial compensation to anyone who has been physically injured in the insured vehicle and generally includes any of the following losses:

• Lost wages 
• Diminished earning capacity 
• Medical treatment 
• Medical equipment 

Non-economic losses, on the other hand, are losses that notably worsen your quality of life but cannot be monetarily measured. These account for the injured person’s pain, emotional distress, and suffering due to a car accident. They include the following: 

• Mental suffering 
• Anguish and pain 
• Impairment or Disfigurement 
• Paralyzation 

To better understand the ins and outs of personal injury protection, check out our deep dive into PIP.

What Happens When PIP Can’t or Won’t Cover Everything? 

If PIP doesn't cover all your economic losses, or if you have non-economic losses like pain and suffering, you can open a claim against the other driver's insurance — specifically their bodily injury liability coverage (BIL). Mighty's AI opens both your no-fault claim with your own insurance AND a separate liability claim against the at-fault driver's insurance, then negotiates each.

You will be collecting money from their insurance’s bodily injury liability coverage (BIL). These four factors influence the settlement that you can receive: 

• The extent of the other driver’s fault in the auto accident 
• The severity of your losses, both economic and non-economic
• The amount that your insurance has covered 
• The other driver’s insurance policy limit

To calculate something subjective like pain and suffering, an insurance company weighs factors like severity of injuries, circumstances, and age. The final number depends on how life-altering the non-economic losses have been. A sprained wrist is considered much less life-altering than ongoing migraines post-accident. Mighty's AI captures these factors in your case file documentation, so the demand reflects what your case is actually worth.

#3 Comparative Negligence 

In New York, if your case goes to court, a judge and jury will compare the fault of both drivers. This is because New York is a pure comparative negligence state. This will also determine the amount of money each party receives.

To give an example, if you had to pay $2,500 in medical bills but were found to be 25% at fault, you may receive around 25% less than you normally would receive in reimbursements — in this case, $625 less. Mighty's AI applies New York's pure comparative negligence framework to your case automatically and builds documentation to support the strongest possible fault assignment.

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Should You Hire a Lawyer for Your New York Accident Claim?

Open the claim — but use Mighty to do it. Mighty's AI builds your case file, opens your claim with the insurance company, negotiates a settlement for you to approve, and routes you your payment if the offer is fair. For most accident claims, that's all you need — and you keep 100% of your settlement.

Only hire a lawyer when you need one, which is rarely in the first month or two after an accident. Waiting has two big advantages. First, you may not need one at all, in which case avoiding their fees leaves you with 33% to 40% more of your settlement. Even if you do need one, waiting until you have more information about your case — including an offer from insurance — gives you leverage to negotiate the lawyer's fee down from the standard rate.

A lawyer is genuinely necessary when injuries are serious, liability is disputed, multiple parties are involved, or the insurance company refuses to engage. For those cases, Mighty's marketplace helps to match you with a vetted lawyer who only gets paid on the increase to your existing offer.

Sources

HG Legal Resources. Non-Economic Losses: What Are They? https://www.hg.org/legal-articles/non-economic-losses-what-are-they-59530 

Find Law. New York Car Accident Compensation Laws. https://www.findlaw.com/state/new-york-law/new-york-car-accident-compensation-laws.html