Car Accident Settlement in New York: What Affects Compensation

New York no-fault coverage generally provides up to $50,000 in combined basic economic loss, including necessary medical expenses, 80% of covered lost earnings subject to a $2,000 monthly limit for up to three years, and up to $25 per day for certain other necessary expenses for up to one year. It does not cover pain and suffering.

Written notice of a no-fault claim generally must be submitted within 30 days after the accident. Medical bills must be submitted within 45 days after services are rendered, and proof of lost earnings within 90 days after the work loss is incurred, unless written proof provides a clear and reasonable justification for late submission.

A covered person generally must establish a serious injury under Insurance Law §5102(d) to recover pain and suffering from another covered person. For actions commenced on or after May 26, 2026, serious injury includes death, dismemberment, significant disfigurement, a fracture, loss of a fetus, permanent loss of use of a body organ, member, function, or system, permanent consequential limitation of use of a body organ or member, or significant limitation of use of a body function or system. The former 90/180-day category may remain relevant to actions commenced before May 26, 2026.

Soft tissue injuries may meet the threshold when supported by objective medical evidence of significant limitation, but the standard requires documentation beyond subjective complaints.

The severity and permanence of the injury are among the most significant factors. Relevant considerations include the need for surgery, hospitalization, or long-term rehabilitation; permanent impairment; and documented loss of earning capacity. Medical records, imaging results, treating physician opinions, and expert testimony on permanency and future care needs are central to establishing damages in a serious injury claim.

New York requires minimum liability coverage of $25,000 per person and $50,000 per accident for bodily injury. A payment under one liability policy cannot exceed that policy's limit. Total recovery may involve multiple liable parties, additional policies, or collectible assets. An injured person may have a claim under mandatory uninsured motorist coverage when the at-fault driver had no insurance, with minimum UM limits of $25,000 per person and $50,000 per accident. If purchased, SUM coverage may provide additional protection for underinsured losses. See uninsured motorist claims for coverage disputes.

New York applies modified comparative negligence to personal injury actions subject to Insurance Law Article 51 under CPLR §1411. A claimant's damages are reduced according to their percentage of fault, and recovery is barred when the claimant's fault exceeds the fault of the defendant or the combined fault of multiple defendants. A claimant found 30% at fault may recover 70% of proven damages, while a claimant found more than 50% at fault cannot recover in a covered motor vehicle personal injury action. Fault allocation is frequently disputed in insurance dispute negotiations.

Seek medical evaluation promptly, even when symptoms seem minor, because gaps in treatment are frequently cited by insurers to dispute causation or severity. Preserve photographs, obtain the police report, collect witness contact information, and retain all medical records and bills. Report the accident to your insurer as required by your policy, and be cautious about providing recorded statements to the other driver's insurer without legal review.

An initial offer may not account for disputed liability, future treatment, lost earning capacity, or other damages requiring additional documentation. Accepting payment and signing a release generally ends further claims against the released parties, including for injuries that worsen later.

Auto accident litigation may be necessary when the insurer's position does not reflect actual damages or when injuries are permanent and policy limits are contested. A timely lawsuit may preserve viable claims and permit discovery, but filing suit does not guarantee liability, damages, or recovery.

The statute of limitations for a personal injury claim is three years from the date of the accident under CPLR §214. Wrongful death claims must be filed within two years of death under EPTL §5-4.1. For claims against municipal entities, a notice of claim generally must be served within 90 days after the claim arises, but the deadline depends on the defendant and cause of action.

Yes. No-fault PIP benefits generally extend to pedestrians and bicyclists injured by a motor vehicle, and the serious injury threshold for a tort claim also applies. The applicable no-fault insurer depends on the circumstances of the accident rather than whether the injured person was in a vehicle.

Yes. A passenger may file a no-fault PIP claim and, if the serious injury threshold is met, pursue a tort claim against the at-fault driver, which may include the driver of their own vehicle. Comparative fault generally does not reduce a passenger's recovery unless the passenger's own conduct contributed to the accident.