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What Happens When a Car Accident Claim Exceeds Insurance Limits?

When you get into a car accident in New York, your insurance company is responsible for compensating any resulting damages. The settlement award will cover immediate expenses like medical bills, damage to property, lost wages due to injuries, and death benefits in case of a fatality. 

But what happens when the damages on your car accident claim exceed your insurance policy limits? When your case turns out like this, it might be best to speak with an NYC car accident attorney if you haven’t already, to discuss your options for further compensation.  

What Does No-Fault Insurance Mean?

New York is among the dozen states that use no-fault insurance laws for auto accidents. Here, every driver is required to carry, among other things,  a minimum of $50,000 in personal injury protection (PIP) coverage. 

This cover is responsible for your economic damages recovery should you get into an accident, regardless of who’s at fault. Therefore, all parties involved will file claims with their auto insurance providers to recover their respective damages. 

In most cases, the amount of compensation offered by PIP is usually enough to pay for the losses incurred, but there’s also a chance that your damages might be more than this. In addition, no-fault insurance does not cover non-economic damages like pain and suffering.   

When Car Accident Damages Exceed Insurance Limits

Luckily, there’s still hope for compensation even when your claim exceeds insurance limits. One of the ways you can get the justice you deserve is by filing a claim against the parties responsible for the car accident. 

Unlike with no-fault insurance, pursuing compensation from the other party’s insurance company will require proof of negligence. This will involve an investigation, collecting evidence, and building a case, which you’re better off tasking an attorney.

Some cases might also consider whether your injuries have reached the “serious injury” threshold with things like:

  • Loss of life
  • Disfigurement
  • Dismemberment
  • Loss of body part function, system, or organ
  • Injuries that impair you for more than 90 days
  • Losing a fetus
  • Among others

Get Help From a Car Accident Lawyer

Car accident claims don’t always go as expected. Your total damages might surpass the amount that the insurance company can pay, forcing you to pay out of pocket. At Greenstein & Milbauer, LLP, we know that this shouldn’t be the case, especially when you’re not to blame for the accident. 

Consult a car accident lawyer in a free initial meeting to review your case and find other parties who might be financially liable for your injuries. Call 1-800-VICTIM2 (842-8462) or complete the form at the bottom of this page to get started.

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