What Are Insurance Policy Limits, And How Do They Impact My Claim?

If you, or a family member, have suffered injuries in a Buffalo, New York car accident, you may be entitled to obtain monetary compensation. However, New York is a “no-fault” state which means that regardless of who was responsible for the crash, both drivers and passengers must file claims against the no-fault insurance of the vehicle that they were in. Under New York law, proof of no-fault insurance, also commonly referred to as personal injury protection (PIP) coverage, is required before registering a vehicle. Personal injury protection coverage promptly pays accident victims for their economic damages, such as hospital bills, lost income, and other essential expenses. 

Minimum Liability Insurance Coverage

Every motorist is required to purchase minimum amounts of liability insurance coverage, including: 

1. Personal Injury Protection: As mentioned above, no-fault insurance compensates drivers and occupants of their vehicles for accident-related injuries, irrespective of fault.
2. Bodily Injury Liability Coverage: In case of an accident, this coverage compensates victims of the motorist’s negligence. 
3. Property Damage Coverage: When any property is destroyed in an accident, this coverage compensates the owner of the damaged property. 
4. Uninsured/Underinsured Coverage: If a policyholder is injured in a hit-and-run accident or by an uninsured/underinsured motorist, this coverage helps to pay for economic losses, such as hospital bills, over the personal injury protection benefits as well as non-economic losses, like pain and suffering.  

New York State’s Serious Injury Threshold

In a severe collision involving devastating injuries or death, the above is likely insufficient to pay for all of the injuries suffered. In this case, the victim would be entitled to file a lawsuit against the responsible driver for damages beyond the insurance limits. However, the victim must show that their injuries meet New York Insurance Law §5102(d)’s serious injury threshold requirements. The victim’s expenses must surpass the threshold of $50,000 in basic economic damages, or they must have suffered a serious injury. Serious injuries can be considered any fracture, non-permanent injury, or impairment that prevents a victim from performing routine activities, loss of body functions, dismemberment, disfigurement, loss of an unborn baby, or death. These requirements are intended to ensure that minor claims, which can be better served through personal injury protection benefits, do not overwhelm the courts.  

Please Contact Western New York’s Finest Car Accident Attorney Today!

The elite personal injury attorneys at the Dietrich Law Firm P.C. know precisely how to litigate your car accident injury claim. Jed Dietrich, Esq., acclaimed as an American Institute of Trial Lawyers Litigator of the Year, and his battle-tested team of attorneys promise to do everything possible to obtain the maximum compensation for your claim. We are highly skilled at aggressively negotiating with insurance companies to force them to cover well beyond policy minimums. You have absolutely nothing to lose by retaining our veteran law firm. Kindly view our clients’ testimonials and Google 5 Star rating by clicking here. We are available 24/7 by completing the online consultation form or calling 716-839-3939.