A car accident can become even more complicated if you discover that the driver who caused the crash does not have insurance. In any such instance, it’s fair to wonder who pays the medical bills after an accident involving an uninsured driver, and whether you can recover compensation for pain and suffering.
Just what happens if the other driver is uninsured often boils down to the severity of your accident and injuries, because while your own insurance provider steps in owing to your no-fault coverage, it might not be enough to cover your entire damages. Besides, an uninsured driver might injure a pedestrian or a bicyclist who does not carry any insurance.
No-Fault Insurance Covers Immediate Bills
New York is a no-fault insurance state, so your initial medical care and lost earnings do not depend on who causes a crash or whether the other driver carries insurance. According to state law, every standard auto policy must include personal injury protection (PIP), commonly known as no-fault insurance, and it comes with a minimum limit of $50,000. It includes:
- Liability for bodily injury. $25,000 per person and $50,000 per accident.
- Liability for property damage. $10,000 per accident.
- Personal injury protection. $10,000 per accident.
- Uninsured/underinsured motorists. $25,00 per person and $50,000 per accident.
As part of your no-fault insurance, you may expect coverage for:
- Necessary medical treatments. This includes hospital stays, emergency room visits, surgery, physical therapy, and prescription medications.
- Lost wages. Your insurance covers 80% of your lost gross income, capped at $2,000 per month for up to three years.
- Essential expenses. These include out-of-pocket costs such as travel to doctor visits or household help while recovering, up to $25 per day, for one year.
However, PIP comes with two crucial limitations: it caps out at $50,000, and it strictly covers economic losses. It pays nothing for non-economic damages, such as physical pain, emotional distress, or loss of enjoyment of life.
In addition, if you’re a passenger or a pedestrian hit by an uninsured driver, your primary claim goes through your own household auto insurance policy. If no one in your household has auto insurance, the law in New York provides an alternative path.
How Uninsured Motorist (UM) Coverage Works
When medical expenses exceed $50,000 or when you suffer a severe life-altering injury, you must look beyond basic no-fault insurance. Ordinarily, you would file a claim against the at-fault driver’s bodily injury liability policy. However, if the at-fault driver is uninsured in New York, uninsured motorist (UM) coverage steps into their place.
New York state law (under Insurance Law § 3420(f)(1)) mandates that every personal auto insurance policy issued in the state must include basic uninsured motorist coverage. The mandatory minimum UM limits are:
- $25,000 for bodily injury per person.
- $50,000 for bodily injury per accident involving two or more people.
- $50,000 per person and $100,000 per accident in cases resulting in death.
What Damages Are Covered by Uninsured Motorist Insurance?
If you’re involved in a car accident with an uninsured driver in NY, basic UM coverage allows you to seek damages directly from your own insurance company. It pays for medical bills exceeding PIP, lost income beyond PIP limits, and pain and suffering.
However, mandatory basic UM coverage in New York comes with two major restrictions that often surprise drivers after a crash.
- New York boundaries. Basic mandatory UM coverage applies exclusively to accidents that happen within New York State. Your standard UM will not cover you if an uninsured motorist hits you across the border in New Jersey, Pennsylvania, or Connecticut.
- No property damage. New York uninsured motorist coverage only covers bodily injury, and it does not pay a single dollar to fix your vehicle or replace damaged personal property.
How Does SUM Coverage Work in New York?
While basic UM coverage provides a bare minimum safety net, a single emergency room visit, surgery, or prolonged absence from work can easily burn through $25,000. That is where supplementary uninsured/underinsured motorist (SUM) coverage enters the picture.
- It covers accidents across the U.S., its territories, and Canada.
- It covers uninsured and underinsured drivers.
- It matches your standard policy’s bodily injury liability limits (for example, $250,000 per person per accident and $500,000 per accident).
Consider this example to look at how you stand to receive compensation after an uninsured driver accident if you have SUM coverage of $250,000/$500,000. The total damages you suffer amount to $150,000 (including medical bills, long-term treatment, and pain and suffering). In this case, while your basic coverage for uninsured motorists maxes out at $25,000, your insurance company is responsible for paying the remaining $125,000 through your SUM coverage.
Who Pays for Repairs in an Uninsured Motorist Claim?
Neither UM nor SUM coverage pays for repairs, and you typically have to rely on your own policy’s collision coverage. However, this is an optional extra and not a part of your standard policy. If you don’t carry collision coverage, you must pay for repairs out of pocket or attempt to sue the at-fault driver.
How MVAIC Uninsured Driver Claims Work
What happens if you are hit by an uninsured driver or a hit-and-run motorist, but you do not own a car, and no one in your household carries auto insurance? The state created the Motor Vehicle Accident Indemnification Corporation (MVAIC) to handle these specific cases. To qualify for New York MVAIC benefits, you must meet these conditions.
- You are involved in a motor vehicle accident in New York State.
- You are a resident of New York at the time of the crash (or a resident of a state with reciprocal coverage).
- You have no other auto insurance available to you or anyone in your household.
- You are not the owner of the uninsured vehicle or the spouse of the owner operating the vehicle.
To qualify, you need to report the accident to the police within 24 hours. In addition, you get 90 days to file a Notice of Intention (NOI) to make a claim with MVAIC if the accident involved a hit-and-run or unidentified vehicle, and 180 days if the uninsured driver has been identified.
Conclusion
You don’t have a say on whether other motorists carry adequate insurance, but you can control your own coverage. If you have the required coverage, and if you end up meeting with an uninsured driver accident in New York, you know that you can turn to your own insurance provider to seek compensation for your damages.
However, if all you can depend on is your uninsured motorist coverage, but it barely makes a difference given the extent of your injuries, you might need to reevaluate your options. For example, suing an uninsured driver in New York State might be an option, for which getting in touch with an experienced automobile accident lawyer is the ideal way to go.