Not every driver on the road follows New York’s insurance requirements. If you are hit by someone who carries no coverage at all, you could find yourself facing significant expenses with no obvious source of compensation. Learning how the state addresses these situations can help you understand what you can do next.
UM coverage under your own policy
New York requires every auto insurance policy to include uninsured motorist bodily injury (UM) coverage, with minimums of $25,000 per person and $50,000 per accident for injuries, and $50,000 per person and $100,000 per accident for fatalities. This coverage applies when an uninsured driver injures you in an accident.
Your Personal Injury Protection (PIP) coverage primarily handles your medical expenses and lost wages up to $50,000. UM coverage can then compensate you for the losses that exceed those PIP limits, as well as pain and suffering if your injuries meet the state’s “serious injury’ threshold.”
One detail worth noting is that New York resolves UM claims through arbitration rather than a traditional lawsuit. Arbitrators review the evidence from both sides and issue a decision on liability and damages, which is generally binding.
A civil lawsuit against the driver
Filing a lawsuit against an uninsured driver is possible, but the practical challenges are often significant. A driver who cannot afford insurance may also lack the income, savings or property needed to satisfy a court judgment.
If you do obtain a judgment, collecting on it can be a separate process. The state permits wage garnishment and asset seizure, but limited resources on the other driver’s end may make enforcement difficult.
MVAIC benefits for qualifying victims
The Motor Vehicle Accident Indemnification Corporation, or MVAIC, helps people hurt by uninsured or unidentified drivers. MVAIC may provide compensation if the at-fault driver has no insurance and no one in your household carries auto coverage.
MVAIC serves as a last resort. To qualify, you need to file an application and meet set eligibility criteria. It covers no-fault benefits such as medical costs and lost wages, as well as pain and suffering claims in eligible cases.
Key deadlines for your claim
Several deadlines apply to accident claims involving uninsured drivers in New York. Missing even one of them can limit or eliminate your ability to recover damages.
For no-fault benefits, you must file an application within 30 days of the accident, whether the claim goes through your own insurer or MVAIC. New York generally gives you three years from the accident date to file a personal injury lawsuit.
For MVAIC benefits, you must notify the corporation as soon as reasonably possible. The deadline is 90 days for hit-and-run accidents and 180 days for accidents involving identified uninsured drivers.
These overlapping deadlines make it important to act quickly. Speaking with an attorney can help you navigate these timelines and protect your right to compensation.