How Often Do Auto Accident Settlements Exceed Policy Limits in New York

Understanding Car Accident Settlements That Exceed Policy Limits

In New York, auto accident settlements, including car, truck, and motorcycle accident settlements, do not often exceed policy limits. However, while it is not the norm, having a car accident that exceeds policy limits does happen occasionally. Suppose you or a loved one has been seriously injured in an auto accident. In that case, your best chance at obtaining a maximum recovery is to speak with an experienced personal injury lawyer. 

At Greenspan & Greenspan, we have decades of experience providing superior legal representation to accident victims and their families.

How Often Do Auto Accident Settlements Exceed Policy Limits? In Reality, Infrequently.

Put simply, auto accident settlements or awards do not typically exceed policy limits because insurance companies are generally not required to pay more than the maximum amount of the policy. In a practical sense, if any plaintiffs were allowed to seek in excess of policy limits, it would render policy limits pointless. 

However, there are times when more compensation is warranted than what is available. In these situations, having a strong legal advocate on your side is crucial.

How to Get More Than Policy Limits in a Car Accident Settlement

Although it doesn’t happen often, there are some cases when a settlement for an auto accident can go beyond stated policy limits. 

If your case settles outside of court, it will rarely exceed the applicable policy limits unless additional outside sources of compensation are available and warranted. Most importantly, an accident victim with severe, lifelong, permanent injuries will be much more likely to receive compensation beyond policy limits. If an individual only suffers minor, recoverable injuries, the compensation will almost always be within the policy limits.

Let’s take a look at the three general ways that this can occur and explain how they work.

1. Settling with the At-Fault Driver or Other Liable Party

Depending on the severity of your injuries, it is possible to settle with the insurance company for the maximum policy limits and then reach an agreement with the at-fault driver or other liable party to cover additional compensation out of pocket. In other words, they will agree to pay with their personal money or assets to cover what the insurance policy does not. 

2. Winning an Award at Trial

When settling a car accident case, it is much more likely to pay within the policy limits than to go to trial. If your auto accident case goes to trial and you are successful, a jury does not typically consider policy limits and can award damages beyond the insurance maximums. If the award exceeds the policy limits, the defendant, usually the at-fault driver, could face a lien, judgment, or seizure of their assets to satisfy the award. 

3. Filing a Claim with Your Underinsured Motorist (UIM) Coverage

Perhaps one of the easiest ways to obtain compensation above the at-fault driver’s auto policy limits is to file a claim with your own underinsured motorist coverage. In New York, having underinsured motorist coverage is mandatory, while in many states it is optional. However, this is a resourceful avenue to pursue additional compensation you might need for your injuries above the at-fault driver’s policy. Utilizing your UIM coverage can help bridge the gap between your damage and the other driver’s policy limits, especially if they only carry the minimum policy limit.

Recovering beyond the policy limits is usually only possible if backed by strong, credible evidence that supports serious injuries and significant financial damages. An experienced attorney can use medical records, expert reports and opinions, reconstructive technology, and more to prove the extent of your loss and recover the maximum compensation available. 

Severe Injuries Are More Likely to Secure Compensation Above Auto Accident Policy Limits

Generally, the more severe the injuries, the more compensation an accident victim can expect to recover. Why? An individual with severe injuries may require extensive medical care, rehabilitation, therapy, a prolonged time missed from work, and much more. While every case is unique, there are specific injuries that are much more likely to end in a settlement exceeding the policy limits.

These can include:

• Traumatic brain injuries (TBIs);
• Spinal cord injuries and paralysis;
• Limb amputation;
• Severe burns; and
• Any severe, permanent injuries and impairments. 

If an injury requires long-term care, surgeries, lengthy hospitalization, at-home modifications, and nursing care, those costs alone can quickly exceed even the most robust policy. 

How New York Minimum Insurance Requirements Play a Role

Like most states, New York requires drivers to carry minimum insurance coverage. Most drivers will elect to carry more than the mandated minimums, but not always. Even moderate accidents and injuries can quickly exceed minimum policies.

New York’s minimum insurance requirements are as follows:

• $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; and
• $10,000 for property damage to the vehicle or other personal property in any one collision.

As you can imagine, $10,000 for property damage to your car is not much. A minor fender bender can easily exceed $10,000 in damages. Similarly, even a minor crash with mild injuries can lead to medical bills beyond $25,000 with just one hospital visit. 

A skilled, knowledgeable, and experienced attorney can be vital for pursuing all avenues for maximum compensation. 

New York Motor Vehicle Accident Attorneys

If you or a loved one was injured in a car accident, it’s natural to ask questions like, “How often do auto accident settlements exceed the policy limits?” and “How can I get more than policy limits in a car accident settlement?” 

At Greenspan & Greenspan, our advocates are prepared to help you get the clarity you need to make informed decisions after a car accident. Our team can assess your case and determine all potential avenues of compensation. We have been helping New York crash victims recover beyond car accident policy limits for decades, and we’re ready to help you. Contact us today for a no-cost, no-obligation consultation.