If you are hit by another driver, the first thing you might want to due is sue them for every dollar they owe you. However, this is not always possible, especially if they have no insurance to cover your damages.
When you are in a car accident, you cannot always sue for damages in the first place. You may be required under New York’s no-fault laws to use your own insurance first, and you can only sue if you have “serious injuries.” If you meet that threshold, then we have to look at whether the defendant can pay. If they have low or no insurance, they might not be able to afford damages. However, your own insurance may provide additional payment if you have uninsured/underinsured motorist coverage.
For a free evaluation of your case, call our NYC car accident lawyers at The Carrion Law Firm at (718) 841-0083.
When Can You Sue for a Car Crash in NYC?
In the first place, lawsuits are only available in limited situations. Generally, no-fault laws for insurance in New York require you to go through your own insurance coverage first. Only if your injuries are considered “serious” can you sue the at-fault driver, regardless of their insurance status.
That means that you need to have a permanent injury, one that disables you for at least half of the next 180 days, or involves a broken bone. Amputations, lost function, and other really bad injuries will always qualify, and you can always sue for the loss of a fetus or a loved one’s death, too.
When you sue this way, you can get pain and suffering and other non-economic damages, which makes filing a lawsuit ideal in any case to avoid missing out on damages.
Can You Sue an Uninsured Driver?
Once you meet the requirements above, you can file a lawsuit against a driver even if they are uninsured. There are no laws restricting lawsuits against uninsured drivers specifically, and you can still sue them. However, the question of whether they can pay is important.
Keep in mind that you still have your $50,000 of no-fault coverage. If this is enough, then you might not need to sue at all. However, that $50,000 cannot cover pain and suffering.
What is a “Judgment Proof” Defendant?
Some defendants are what the legal profession calls “judgment-proof.” This means that even if you win a lawsuit against them, it will be hard or impossible to collect on that judgment. Ultimately, it means they cannot afford the damages you are claiming.
Even if you win a judgment for quite a bit of money against another driver, if they have no insurance, there might be no way they can pay it. Our NYC personal injury lawyers can take them back to court for enforcement and try to attach their house or garnish their wages to get your payment, but this is often quite difficult and may still end with them being unable to pay you.
Some uninsured drivers may be independently wealthy, and they might pay your damages in full, but this is not typical. Instead, you may need to turn back to your own insurance.
Can You Sue Underinsured Drivers?
Many drivers have insurance, but it still might not be enough to cover serious damages. State minimum insurance can pay $25,000 to one person for an accident ($50,000 to all injury victims). This comes on top of the $50,000 of coverage under your own no-fault policy.
That $75,000 might be enough for some injury victims, but others need far more. If the driver’s policy is divided among multiple victims, that also leaves less money for each victim.
They run into the same issue that anyone suing an uninsured driver does: there might not be enough money. Once an insurance company pays the full policy limit, any additional funds would come from the defendant personally. If they cannot afford it, they are essentially judgment-proof as well.
However, your own insurance might still make up the difference.
Using Your Uninsured or Underinsured Motorist Coverage and Other First-Party Benefits
If the defendant in your case is either uninsured or underinsured, then they might not be able to pay for anything else in your case. This leaves you with your $50,000 of coverage, plus their policy limit if they are underinsured. However, your insurance might have additional coverages to help you.
UM/UIM Coverage
The most important is uninsured/underinsured motorist coverage (UM/UIM). Your UM coverage will pay when the other driver has no insurance, and UIM will pay when their insurance is too low. This can cover any injury costs a lawsuit would have covered, including pain and suffering.
UM is required in New York with a minimum of $50,000, but you can opt for higher coverage. Multiple policies in your household can also stack, essentially doubling up if your other family members also have UM.
Medical Payment Coverage
Your initial $50,000 of coverage is only the minimum. You can opt for higher first-party benefits to cover higher injury costs. Keep in mind that these benefits always have a deductible you have to pay, and they don’t cover pain and suffering.
Collision Coverage
Your no-fault coverage does not pay for auto repairs. You can get this covered in a lawsuit, but state minimum insurance covers only $10,000 per accident, if the defendant has insurance at all.
If you opt for collision coverage, you can pay a deductible to get the rest of your auto damages covered in most cases. Check your specific policy for limits.
Can I Sue if I Don’t Have Insurance?
New York does not have any laws blocking uninsured drivers from suing. You may face fines for violating minimum insurance requirements, but it should not block you from getting compensation for a serious injury case.
However, if the at-fault driver does not have insurance either, it will be quite difficult to get paid.
Call Our New York City Car Accident Lawyers Today
For a free review of your case, call The Carrion Law Firm’s Brooklyn personal injury lawyers at (718) 841-0083.