New York uses a no-fault insurance system. That’s a good thing for New York residents since a car accident claim settles quickly no matter whose fault it was. However, the no-fault insurance policy only reduces the time it takes to settle car accident victims that didn’t sustain serious injuries. Many have questions in mind how long for car accident claim to settle?
The settlement process might take longer if a car accident claim has exemptions that allow an injury claim to take precedence over the no-fault system. Here’s what New York residents should know about the no-fault system and how long a car accident claim takes to settle.
New York’s No-Fault System
The New York no-fault insurance system means that car accident victims can file claims for injuries and property damage with their insurer regardless of who was at fault. That means every New York driver works with their own insurance company when an accident occurs. The fault issue doesn’t impact anyone unless the basic economic losses resulting from the accident exceed $50,000.
Basic economic losses include lost wages and medical bills resulting from the injuries sustained from the accident. Your insurance company will exclusively settle all economic losses under $50,000.
How long does it take to get a car accident settlement?
Settling a no-fault claim in New York is a straightforward process as your insurance company doesn’t need to determine the at-fault driver. That allows your insurer to deny or settle the claim quickly.
Here is New York’s aggressive timeframe for insurance companies to settle no-fault claims:
- Your insurance company has 15 days to request all the information needed to investigate the claim once you file your car accident claim.
- The insurance company has 15 days to deny or accept your claim after receiving all the additional information required for the investigation.
In an ideal situation, your insurer should give you a response about your car accident settlement 30 days after filing the claim. They would also issue your car insurance settlement check within five days of making the decision.
Who’s the No-Fault Carrier after a Car Accident?
When accidents occurred in New York, doctors who didn’t know how the medical bills would get paid refused to render treatment services. No-fault was designed to help car accident victims get the medical treatment they need and compensation for losses incurred from the incident.
As such, the no-fault carrier after a car accident will be:
- If you were the driver or passenger, your car’s insurance company would be the no-fault carrier responsible for the settlement.
- If you were struck by a car when riding a bicycle, the car’s auto insurance would be responsible for the settlement.
- If a pedestrian is hit by a car, the car’s insurance company that hit you becomes the no-fault carrier.
- If you’re a bus passenger, your household’s car insurance will be the no-fault carrier. If no one in your household owns a car, the bus will be responsible for providing no-fault coverage.
Benefits of the No-Fault Insurance Law
New York’s no-fault policy offers different benefits to the law enforcement systems and the parties involved. The system helps to filter the cases that make it to court, as the civil court system can quickly sort many personal injury claims and a fair settlement awarded.
Some of the benefits that the no-fault system offers victims include:
1. Covers medical expenses
The no-fault system takes care of all the victim’s medical bills, including:
- Ambulance costs
- Prescription drugs
- Dental costs
- Necessary x-rays, nursing care, and surgical interventions
- Psychiatric treatment
- Physical and occupational therapy
- Prosthetic devices
- Any necessary rehabilitation for medical and non-medical purposes
2. Lost wages
Car accidents often make the victims miss work and lose wages. The no-fault system awards many accident victims 80% of the lost wages they claim. The award is non-taxable, hence the reason why 20% of the settlement check is withheld.
3. Burial expenses
The no-fault policy pays for all funeral expenses for any New York resident who dies in a car accident in the state. That includes everything from embalming fees to buying the casket and paying for other prep work needed.
4. Other necessary expenses
The no-fault policy includes paying $25 daily for expenses like transportation to therapy and medical appointments to seek further treatment. That may also include household help where necessary.
Who Can Get the No-Fault Benefits?
The no-fault insurance cover in New York is meant to cover:
- All passengers in a vehicle involved in an accident.
- The vehicle owner who’s named as the insured in the policy cover.
- Any member of the insured’s household when involved in a car accident as a pedestrian.
Members of your household can also get the benefits if they’re involved in an accident where the at-fault driver wasn’t insured.
Exception of the No-Fault Benefits
The no-fault policy has several established exceptions as with any other state law. Accident victims who can’t be compensated under the no-fault system and might need to prove liability for compensation include:
- Motorcycle riders and passengers.
- Vehicle owners driving their unlicensed cars.
- Drivers or passengers in their spouse’s uninsured car.
- People who aren’t New York residents.
Most insurance companies also make their own exclusions as the law allows it, so it’s important to review your auto insurance policy to understand what’s not covered. These exclusions might include:
- Insured people who intentionally cause the accident/ injury.
- If the person injured was in the process of committing a felony at the time of the accident.
- If the driver is intoxicated or under the influence of a controlled substance.
- Racing or performing a speed test.
- Driving or being a passenger in a vehicle reported as stolen by the policy owner.
What if a Car Accident Claim is Denied or Needs Further Investigation?
While the no-fault insurance system help to settle insurance claims quickly, the New York laws provide a loophole for insurers. If the insurance company needs more time to investigate your claim, the insurer will send you a letter explaining why the additional time is necessary. The letter will allow the insurance company to push the deadline by 90 days.
Some reasons that your insurance company can give for extending the deadline or denying your claim include:
- The driver involved in the accident wasn’t included in your insurance policy.
- Your policy doesn’t cover the vehicle involved in the accident.
- Your injuries didn’t result from the accident.
- The medical treatment wasn’t reasonably necessary for the injuries.
If your insurance company decides to deny your claim or asks you to wait longer while it investigates further, you might need to negotiate with your insurer to be paid. The negotiation process can be hard and time-consuming.
When you receive a letter denying your claim or explaining why your insurer needs more time to investigate, it’s difficult to estimate how long for a car accident claim to settle. In such a case, hiring a lawyer like Gregory Spektor & Associates P.C will help push your insurance company to settle.
A car accident lawyer can prepare the evidence needed to satisfy your insurer’s concerns, end investigations, and reverse a denial. Your personal injury lawyer can also threaten to take your auto accident claim to court (arbitration).
Exiting New York’s No-Fault System
If your insurance company acknowledges your claim and decides to pay, but you’ve exhausted your no-fault benefits, you’ll still have unpaid medical bills. You’ll also need additional compensation from the at-fault driver if your medical bills or lost wages exceed $50,000.
Under the current New York law, victims can also exit the no-fault insurance system and file a personal injury case against the accident’s at-fault driver if:
The economic loss incurred exceeds $50,000
If the economic loss resulting from medical bills, pain and suffering, lost wages, and punitive damages exceeds $50,000, consider consulting personal injury lawyers. Gregory Spektor & Associates P.C will provide all the necessary information to help you have a personal injury claim or not.
You incur a serious injury from the accident
According to Article 51 of New York’s Insurance law, a severe injury includes death, dismemberment, a fracture, and significant disfigurement. You can also claim a serious injury if you suffer:
- Permanent consequential limitation of a body part or organ.
- Permanent loss of your body organs or their proper functioning.
- A medically diagnosed impairment or injury of non-permanent nature that prevents the victim from performing the material acts of day-to-day living for over 90 days after the accident.
When these parameters are present after an accident, you can file a personal injury claim against the liability policy of the liable driver. Every driver in New York must carry liability insurance, which covers damages arising from body injuries after an accident caused by the policyholder.
Litigating the Claim
If the at-fault driver’s insurance denies your claim or doesn’t offer fair compensation, you might need a personal injury lawyer to file a car accident lawsuit. The at-fault driver’s insurer will prepare a legal defense for the insured driver and should be liable for damages within the policy limits.
If you file a car accident lawsuit, how long it will take to get your settlement check may vary widely. If the insurance adjuster believes the insured is liable, the settlement process might be quick. Insurance companies avoid prolonging losing cases to save their time and money.
Even with a contested auto accident case, everything eventually settles. However, around 3% of personal injury cases reach the courtroom, and nobody can predict how long it might take to settle a case.
Most insurance companies choose to settle soon after your car accident attorney files a lawsuit to minimize the legal fees. Some suits may go through discovery until there’s enough evidence for a settlement, while some settle during the trial when the insurer sees the jury’s reaction towards their defense.
How to Reduce the Timeframe to Reach the Settlement
There are several ways to reduce the time it takes to settle a car accident case. That includes:
- Maintaining reasonable expectations of what you’ll get in the settlement process.
- Fully document your claim for the insurer to avoid wasting time asking for more information.
- Hiring a car accident law firm/ lawyer to negotiate the settlement on your behalf and pressure the insurer to settle.
Proactively anticipating the insurer’s moves will help you stay ahead of your personal injury lawsuit and resolve the claim quickly and fairly.
Filing No-Fault Car Accident Claims in New York
New York’s no-fault system requires an accident victim to file a written claim with the insurance company within 30 days after the accident. You’ll need to file this claim with the insurer covering the involved car within the stipulated time, as this timeframe is rarely extended.
Your claim must include all the necessary details, including the time and date of the accident. Clear details of the circumstances of your accident are also needed, including every injured victim. Fortunately, you can request additional time by providing written proof showing a clear and justifiable reason for not complying with the timeframe.
Don’t forget that the no-fault auto insurance policy doesn’t cover vehicle repairs. The system will only compensate for personal injuries and losses to help you avoid mounting medical bills and suffering more while you recover.
Are you an accident victim looking for experienced auto accident lawyers? We’re here for you!
Gregory Spektor & Associates P.C is a reliable car accident law firm with vast experience in helping victims recover from the resulting physical injuries and financial burden. Call 800-318-8888 for a free consultation to make your settlement process easy and stress-free.
