New York State insurance law requires all motor vehicle drivers to carry and maintain minimum amounts of automobile insurance coverage. This coverage can be used to pay for medical bills and property damage after a car accident. If you are involved with a driver who is uninsured or underinsured, you need to know how to proceed with a claim to pursue fair financial compensation.
What Are New York’s Car Insurance Rules?
In New York, the minimum amounts of automobile insurance that drivers must carry are $25,000 per person and $50,000 per accident in bodily injury insurance, $50,000 per person and $100,000 per accident in death insurance, and $10,000 for property damage. These are all forms of liability insurance, meaning they pay for someone else’s medical bills and losses.
In addition, New York drivers must carry no-fault insurance, otherwise known as personal injury protection (PIP) coverage, with a minimum of $50,000. This insurance covers the policyholder’s medical bills and lost wages, regardless of who is at fault for the car accident.
What Is Uninsured or Underinsured Motorist Insurance?
There is an optional type of automobile insurance available in New York known as SUM, or Supplementary Uninsured/Underinsured Motorists. This type of coverage can be purchased to pay for the policyholder’s losses in the event of an accident with an uninsured or underinsured driver. All insurance companies in New York must offer up to $250,000 per person and $550,000 per accident in SUM insurance.
What Are the Penalties for Driving Without Insurance?
In New York, if a driver is caught operating a motor vehicle without adequate automobile insurance, it is a serious traffic infraction. The penalties include a fine of up to $1,500 and a $750 civil penalty from the Department of Motor Vehicles. In addition, the driver’s license and vehicle registration will be suspended for at least one year. In some circumstances, up to 15 days in jail is also a possibility.
Who Pays When the Other Driver Is Uninsured or Underinsured?
If an at-fault driver in a car accident in New York does not have adequate insurance coverage or any automobile insurance, this can leave the injured victim(s) with limited financial recovery options. Possibilities include:
- PIP insurance. First, since New York is a no-fault insurance state, the injured victim can file a claim with his or her own PIP insurance to recover compensation without needing to prove fault or use another driver’s insurance.
- SUM insurance. Next, if the victim chose to purchase optional SUM coverage, this can be used to provide additional compensation from the driver’s own automobile insurance policy.
- Third-party insurance. Finally, if someone other than the uninsured/underinsured motorist contributed to the accident or your injuries – such as the manufacturer of a defective vehicle part – you may have the right to file a lawsuit against a third party.
The complexity of a car accident claim involving an uninsured or underinsured driver makes it important to consult with a local car accident attorney before accepting a quick settlement. Your case may be worth more than the amount initially offered by your insurance provider.
When to Contact a Car Accident Attorney
If you get hurt or suffer property damage due to the negligence of an uninsured or underinsured driver in New York, you may be facing a particularly challenging type of car accident claim. Fully protecting your legal rights and exploring all avenues of financial recovery may require assistance from a knowledgeable personal injury lawyer.Â
At Abaev Law Firm, PLLC, we have years of experience handling complex car accident cases. Contact us today for a free consultation about your uninsured or underinsured motorist claim.