After a serious car accident, you may be wondering how insurance policy limits come into play and are asking: "What happens if my medical bills exceed policy limits?"
Typically, no-fault coverage pays for medical bills related to your injuries. You can also file a claim against the at-fault driver's liability policy if your injuries meet a certain threshold. Generally, auto accident settlements exceed the available liability insurance policy limits very rarely, though there may be some exceptions.
Auto insurers often prefer settling cases out of court cheaply, prioritizing their bottom line over your well-being. Expenses from serious injuries can add up to exceed policy limits, so it's crucial to discuss your case with an experienced Long Island car accident attorney who can help maximize your financial recovery by looking at all available insurance.
New York Requires Drivers to Carry Auto Insurance
According to the New York State Department of Financial Services (NYSDFS), all drivers in New York must carry the following types of auto insurance policies and meet the minimum coverage requirements:
Basic No-Fault or Personal Injury Protection (PIP)
No-fault insurance, also known as PIP, covers basic economic losses for the driver, passengers, or any pedestrians involved, regardless of who caused the accident.
It provides up to $50,000 in coverage per person for medical expenses, lost wages, and direct expenses related to the crash.
It does not cover any property damage, including vehicle repair or replacement. It also does not cover non-tangible losses, including pain and suffering.
If you were hurt in a car collision, typically the PIP insurance from your own insurance company (or the insurance company of the car you were riding in) will cover your bills before your health insurance kicks in.
Liability Insurance Coverage Minimums
Liability insurance compensates victims for personal injury, death, and property damage caused by an at-fault driver. If another driver caused your collision, their liability insurance should provide financial compensation to cover unpaid expenses that exceed your PIP coverage, including pain and suffering.
New York's minimum insurance requirements are:
- $25,000 for any injury or $50,000 for any injury resulting in death to one person in one collision
- $50,000 for injuries or $100,000 for injuries resulting in death by two or more people in any one collision
- $10,000 for property damage to the vehicle or other personal property in any one collision
Uninsured and Underinsured Motorist Insurance
Uninsured motorist insurance covers bodily injuries to you and resident relatives if you're hurt in a car accident by a driver without insurance or by a hit-and-run driver.
This type of coverage only provides compensation for bodily injury, not property damage. The minimum coverage is the same 25/50/10 as the minimum coverage for liability.
Additionally, this coverage often encompasses supplemental underinsured motorist coverage, which can provide additional insurance in car accident settlements if your injuries exceed insurance limits on the available at-fault party's insurance.
What If My Expenses Exceed the Policy Limits?
If the cost of your serious injuries exceeds policy limits of your PIP insurance, you may be able to seek additional compensation through a personal injury lawsuit.
An experienced car accident lawyer can review your case for additional coverage and help determine if this is an option for you. Your attorney will be able to determine what liability coverage is available to you and seek compensation from multiple policies, or pursue additional compensation through sources like your own uninsured/underinsured motorist coverage or an umbrella policy. This is why it is important to work with an experienced lawyer who knows how to properly value and negotiate a claim after serious car accidents.
Economic Losses
You can sue the other driver with a civil suit for economic losses beyond the minimum no-fault insurance coverage limits, including:
- Medical care, such as surgeries, rehabilitative treatments, medical equipment, prescription medication, and more
- Lost wages for your unpaid time out of work while you recover
- Future lost wages if you cannot return to your previous occupation
Pain and Suffering for a Serious Injury
New York's no-fault insurance system requires that your injury meets a certain level of severity before you can sue for non-economic damages, such as pain and suffering. This is known as the "serious injury" threshold under New York State Insurance Law § 5102(d).
These types of “serious injuries” to an accident victim include:
- Death
- Dismemberment
- Significant disfigurement
- Fractured bones
- Loss of a fetus
- Permanent loss of use of a bodily organ, member, function, or system
- Significant limitation of a body function
If your losses or damages exceed policy limits of the at-fault driver's insurance policy, you can pursue fair compensation by taking the case to trial and potentially obtaining a judgment. The other driver's insurance may offer a settlement, though these rarely exceed limits of most auto insurance policies. It is important to have an experienced personal injury attorney on your side to aggressively negotiate for you to seek full compensation for your injuries.
How Much Time Do I Have to File an Auto Accident Case in New York?
There are time limits for filing a personal injury lawsuit in New York. Generally, under CVP § 214, accident victims have three years from the date of the accident to file car accident claims seeking compensation for losses.
You have two years to file a wrongful death claim, according to New York law (EPT § 5-4.1).
In some cases, like against a municipal entity, you might have just 90 days to act. If you wait too long to file a claim, you may be barred from recovering any compensation at all.
Rosenberg & Gluck, LLP, Is Ready to Represent You After an Auto Accident
If you were injured in a car accident, we are ready to seek the compensation you deserve. We have a proven track record of handling complex auto accident cases and obtaining the maximum amount of compensation for our clients.
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Call us for a free consultation with an experienced attorney to discuss your case when your PIP does not provide adequate coverage for your serious injuries.