If you’re the average driver in NY, you likely renew your car insurance yearly without thinking twice about whether it will fully protect you in the case of an accident.
Despite the rising cost of medical care, vehicle repairs, and lost wages, most states, including New York, maintain auto insurance minimum requirements that were set decades ago. Unfortunately for many, this means taking on personal liability for car accidents. For those injured in an accident, it can mean only being able to recover an amount that is far less than you deserve.
Insurance Is Mandated. So, What’s the Problem?
Recent research from the American Association for Justice [1] reveals a troubling reality: only 54% of the $340 billion in annual motor vehicle crash costs in the United States are paid by insurance companies. The remaining 46% ($156 billion) falls on accident victims, hospitals, some charities, and taxpayers.
When minimum insurance coverage runs out, as it often does, families are left scrambling to cover medical bills, vehicle replacement costs, and lost income that can total over hundreds of thousands of dollars.
What Is New York’s Minimum Liability Coverage?
According to the New York Department of Motor Vehicles’ website, drivers are required to carry the following minimum liability coverage:
- $10,000 for property damage for a single crash or accident
- $25,000 for bodily injury and $50,000 for death for a person involved in a crash
- or accident
- $50,000 for bodily injury and $100,000 for death for two or more people in a
- crash or accident
These minimums, “25/50/10”, haven’t changed significantly in decades.
Consider what these numbers mean today: a single night in the ICU can cost $10,000 or more, serious injuries requiring surgery can easily exceed $100,000, and the average new vehicle costs over $50,000 – far beyond the $10,000 property damage limit.
Throughout the past 2 decades, Leav & Steinberg has seen many clients whose immediate damages far exceed the at-fault driver’s insurance limits. We recently helped a young family recover $1.46M after the responsible driver’s insurance covered only a fraction of their medical costs.
The Insurance Industry Can Afford Better
Despite industry warnings about premium increases, the auto insurance sector reported record profits of $87 billion in 2023, surpassing that with $167 billion in 2024. States that have raised minimums – including California, Virginia, North Carolina, and Utah – have seen only modest premium increases, typically smaller than national averages.
Dangerous changes on the horizon
Despite New York’s antiquated automobile liability coverage limits, the insurance industry continues to lobby aggressively to further reduce one’s access to the court system and limit their damages. Just this past week, Governor Hochul’s office released its revisions to the NYS Budget. Among those are changes directly targeted to hurt seriously injured victims in New York.
The changes include:
- Removes the following language from what is currently deemed a “serious injury” — injuries that are a “medically determined injury or impairment of a non-permanent nature which prevents the injured person from performing substantially all of the material acts which constitute such person’s usual and customary daily activities for not less than ninety days during the one hundred eighty days immediately following the occurrence of the injury or impairment.”
- Limit (other than in an action for damages for injuries resulting in death) recovery for non-economic loss to $100,000 in the case of a serious injury in any action by or on behalf of a person: (1) using or operating an uninsured motor vehicle; (2) using or operating a motor vehicle while impaired at the time of the accident and convicted of such; or (3) using or operating a motor vehicle in the commission of a felony, or immediate flight therefrom, at the time of the accident and has been convicted of such felony.
- Bar recovery in any action to recover damages for personal injury subject to Article Fifty-One of the Insurance Law if the culpable conduct attributable to the claimant is greater than either (1) the culpable conduct of the person against whom recovery is sought or (2) the combined culpable conduct of the persons against whom recovery is sought.
- It otherwise does away with motor vehicle accident joint and several liability by repealing section 1602(6) of the CPLR.
These changes or proposals are not well thought out, and while limiting recoveries to some who may be in the course of committing a crime, most of these proposed changes would limit access to the courts and further reduce the recovery of damages for many of those seriously injured in New York.
When the At-Fault Driver’s Insurance Isn’t Enough
When minimum coverage falls short, experienced attorneys have avenues to pursue additional compensation.
Below are a few examples:
Underinsured Motorist Coverage (UIM): This is your most important protection, built into your own auto insurance policy. It kicks in when you’re injured by a driver without enough insurance. We recently represented a Long Island man injured in a parking lot accident. The at-fault driver had only $100,000 in coverage. By utilizing his
UTM coverage, we secured an additional $1.7 million for a total settlement
of $1.8 million.
Additional Liable Parties: In commercial vehicle accidents, the driver’s employer may also be liable with much larger policies than the individual driver / vehicle. Due to the complexities of business, there might be several additional parties that are liable depending on the specific case.
Personal Assets: In cases of egregious negligence, where the at-fault driver’s insurance policy does not suffice, the personal assets of that person may be pursued to cover the full extent of damages. We recently secured $250,000 for a client struck by a physician on a moped. The doctor’s insurance covered only $25,000. After winning summary judgment, we leveraged trial pressure to secure an additional $225,000 directly from the defendant.
Bad Faith Claims: When insurers unreasonably delay or deny claims, they can be held accountable beyond policy limits.
Protect Yourself Today
While we advocate for higher minimum requirements at a state level, protect yourself now by reviewing your auto insurance policy and investing in robust underinsured / uninsured motorist protection.
After any serious accident, you would be well advised to consult with an experienced attorney’s office before accepting any settlement offers from insurance.
At Leav & Steinberg, we’ve recovered millions above what was available in the defendant’s insurance policy. We know the complexities within the law and can help you pursue every possible source of compensation.
If you’d like to talk about your case, contact Leav & Steinberg for a free consultation at (347) 960-2422 or by visiting our contact page.
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