What Is the Average Car Accident Settlement Amount in New York?

Car accidents in New York often result in substantial financial compensation. However, settlement amounts can vary widely.

The U.S. Department of Justice noted a median compensatory damages award of $287,628 for personal injury trials in New York. These figures contrast sharply with national averages. The Insurance Information Institute reports that in 2022, the average auto liability claim nationwide was $26,501 for bodily injury and $6,551 for property damage.

New York's high averages likely stem from its no-fault insurance law, which filters out smaller claims, and the state's higher living and medical costs. However, these figures can be limiting. They don't account for unique case factors, out-of-court settlements, or cases below the no-fault lawsuit threshold. Individual settlements can vary dramatically based on specific circumstances.

The skilled car accident attorneys at Fellows Hymowitz Rice have successfully managed countless car accident claims across New York. In this guide, we’ll explore the factors that influence settlements, break down the components of a typical payout, and discuss how various elements affect compensation for car accident victims.

What Car Accident Payouts Cover

Car accident settlements in New York encompass various types of compensation. Here's a breakdown of what you might expect in a typical payout:

Economic Damages

These are quantifiable losses resulting from the crash. They include:

Medical Bills

Economic damages typically cover all treatment costs, including hospitalization, surgeries, medication, physical therapy, and any specialized medical equipment needed for recovery.

Lost Wages

When a car accident victim is unable to work due to their injuries, they can claim compensation for lost income. This is particularly relevant in cases of auto accidents involving long-term injuries.

Property Damage

Property damage reimbursement pays for vehicle repairs or replacement. It also includes compensation for any personal property damaged in the accident, such as phones, laptops, or other valuable items that were in the vehicle at the time of the crash.

Future Medical Costs

Estimated expenses for ongoing care related to the victim’s injuries can also be included. These might consist of projected costs for future surgeries, long-term physical therapy, or lifelong medication needs.

Loss of Earning Capacity

Loss of earning capacity addresses the reduced ability to earn income due to long-term or permanent injuries. This goes beyond immediate lost wages and considers how the injury might affect the victim’s career progression and earning potential over their lifetime.

Non-Economic Damages

Non-economic damages are more subjective and harder to quantify compared with economic damages. They might cover the following impacts:

Pain and Suffering

Damages for pain and suffering compensate victims for their physical discomfort and emotional distress. This includes both immediate and chronic pain resulting from their injuries, as well as the emotional toll of the accident and recovery process.

Loss of Enjoyment of Life

Loss of enjoyment of life addresses the victim’s inability to engage in activities they previously enjoyed, such as hobbies, sports, or social activities.

Emotional Distress

Emotional distress damages reflect psychological effects like anxiety or depression resulting from the accident. In many cases, compensation for mental health treatment and the overall impact on the victim's mental well-being is available.

Loss of Consortium

Loss of consortium is intended to compensate accident victims and their loved ones for the loss of companionship or support. This applies to the impact on relationships (particularly with spouses or children) when injuries significantly affect family dynamics.

New York Laws and Their Influence on Car Accident Settlements

New York's laws have a major bearing on car accident settlements. Here are some of the key legal aspects affecting payouts:

Minimum Insurance Requirements

New York law mandates minimum insurance coverage levels of $25,000 per person for bodily injury, $50,000 for bodily injury for two or more persons, and $10,000 for property damage.

No-Fault Insurance System

New York operates under a no-fault insurance system. This means that each driver's own insurance covers their medical expenses and lost wages up to a certain limit, regardless of who caused the accident. This can be particularly important in pedestrian accidents where the pedestrian may not have auto insurance.

Personal Injury Protection (PIP)

As a provision of the state’s no-fault insurance system, all drivers must carry PIP coverage, which pays for medical expenses and lost wages regardless of fault.

Serious Injury Threshold

To file a personal injury lawsuit against an at-fault driver, the injured party must meet New York's serious injury threshold. A “serious” injury is generally one that results in death, dismemberment, severe disfigurement, amputation, or other extreme outcomes.

Comparative Negligence

New York follows a pure comparative negligence rule, which says that an accident victim can seek compensation even if they’re partially at fault for their accident. However, their payout will be reduced according to their assigned percentage of fault.

Statute of Limitations

In New York, injury victims generally have three years from the date of the accident to file a car accident lawsuit. For wrongful death cases, the deadline is typically two years from the date of death.

Factors Influencing Car Accident Settlements in New York

Several factors combine to determine the average car accident claim amount in New York. They include:

Severity of Injuries

The nature and extent of the victim’s injuries are the most important factors that shape the final settlement amount. Severe injuries often lead to higher payouts due to extensive medical expenses and long-term impacts.

Examples of serious injuries that might result in a larger settlement include:

• Spinal cord injuries: Damage to the spine can lead to partial or complete paralysis, requiring lifelong care and assistance.
• Traumatic brain injuries (TBIs): Brain injuries can cause cognitive impairments, personality changes, and the need for long-term rehabilitation.
• Severe burns: These painful injuries often require multiple surgeries and can result in permanent disfigurement.
• Amputations: The loss of a limb dramatically impacts the victim’s quality of life and frequently requires prosthetics and ongoing care.
• Internal organ damage: Injuries to vital organs can give rise to chronic health issues and the need for long-term medical treatment.

Detailed medication examination is often necessary to assess the victim’s condition, provide an accurate prognosis, and formulate a detailed care plan and timeline.

Long-Term Impact

Injuries that significantly affect the victim’s quality of life or result in lifelong disabilities usually lead to larger settlements.

Medical Expenses

The total cost of medical treatment, including immediate care and ongoing treatment, plays a central role in determining settlement amounts.

Lost Income and Earning Capacity

The compensation awarded often covers income lost due to recovery time and may address reduced future earning capacity.

Liability and Negligence

Clear fault on the part of the defendant (such as in drunk driving incidents) often leads to higher settlements, while shared fault may reduce the amount based on New York's comparative negligence laws.

Insurance Coverage

The at-fault driver's policy limits often cap the maximum payout. However, the victim’s own underinsured/uninsured motorist coverage may provide additional compensation.

Strength of Evidence

Detailed medical records, accident reports, and expert testimony can sway settlement negotiations in the injured party’s favor.

Emotional Impact

While harder to quantify, courts consider non-tangible effects like pain and suffering and mental health concerns resulting from the accident.

Venue

The location where the case is tried can also inform the ultimate settlement amount. Urban areas like New York City often see more substantial settlements compared to rural regions.

Legal Representation

Having a skilled New York personal injury attorney on your case can greatly benefit your recovery prospects. Here's your lawyer will help:

• Case evaluation: An attorney can accurately evaluate your claim based on past cases and current legal trends.
• Evidence gathering: Lawyers have the resources needed to collect and preserve crucial evidence, thereby strengthening your case.
• Skilled negotiation: An experienced legal professional will know how to negotiate effectively with the insurance companies to maximize your settlement.
• Legal knowledge: Your attorney will understand New York’s complex laws and regulations, ensuring that all aspects of your claim are addressed appropriately.
• Trial preparation: While most cases settle out of court, being prepared for trial can improve your chances of a higher settlement offer.
• Medical expertise: Your lawyer will work with medical professionals as needed to fully understand, document, and present your injuries.
• Timely filing: Your legal representative will ensure that all necessary documents are filed within the required deadlines.
• Reduced stress: Having a skilled car accident attorney handle your case allows you to focus on recovery while they take care of the legal work.

While average car accident settlement figures can provide a general reference point, each case is unique. The complexities of New York's legal system, combined with the specific circumstances of each accident, make it essential to seek personalized legal advice.

If you've been involved in a car accident in New York, it’s highly recommended that you contact a knowledgeable attorney to give yourself the best shot at receiving comprehensive compensation for your injuries and other losses.

Get Fair Compensation for Your Injuries

The true value of a car accident claim is a product of the intricate interplay between factors like injury severity, long-term impact, legal standards, and the skill with which a case is presented.

Don't navigate this challenging process alone — turn to the trusted personal injury attorneys at Fellows Hymowitz Rice. We’re ready to review your case, answer your questions, and guide you through every step of the legal process.

Contact us today to schedule your no-cost consultation, and let us defend your rights and work to secure the compensation you deserve for your car accident injuries.