Posted on 02/19/26
When you are trying to recover compensation after a car accident, policy limits can make it difficult to recover the full amount of your losses if they are not high enough. This may require you to look elsewhere for additional sources of compensation for the losses you sustained in a car accident. A Buffalo car accident attorney from Towey Law, PLLC, can help determine what
Insurance Requirements in New York
All drivers in New York are required to carry auto insurance to cover losses if an accident occurs. The state requires that drivers carry both liability insurance and personal injury protection (PIP) coverage since New York is a no-fault state. Each driver must meet the mandatory minimum policy limit requirements, which include:
- $25,000 for bodily injury (one person)
- $50,000 for bodily injury (two or more individuals)
- $10,000 for property damage
- $50,000 for personal injury protection
Drivers should also carry uninsured/underinsured motorist insurance for further protection. This coverage must match the same minimums for bodily injury. While coverage should meet all of these minimum requirements, drivers can choose to increase their limits to cover more in all categories so they are better protected in an accident.
Understanding What Policy Limits Mean for Your Claim
Policy limits have a considerable impact on your ability to recover compensation after an accident. Whether you are seeking compensation under your PIP coverage or from another driver through their liability coverage, insurance companies will not pay out more than the limit on an auto insurance policy. In these situations, an insurance company may pay out a settlement up to the policy limit, but it also means you may have to absorb some of your expenses or look for alternative options for making up the difference.
Your Options When Insurance Coverage is Not Enough
If your medical expenses and other losses exceed the limits of an insurance policy, it is time to explore other options for compensatory recovery. One option is to use your uninsured/underinsured motorist coverage to cover the remaining value of your losses. Another option is to file a lawsuit against the driver who caused the accident. On one hand, this could lead to greater compensation and coverage of losses not covered under PIP policies. However, it also may not be a viable option if the other driver does not have the means to pay for the extra value of your losses. A lawyer can provide insight into how to proceed in these situations.
Talk to a Lawyer About Your Options When Your Losses Exceed Insurance Policy Limits
It can be stressful when you cannot cover the full value of your losses through an insurance claim. The weight of your losses can affect multiple areas of your life, and these situations can create even more uncertainty for your family. However, our Buffalo Uber accident lawyer at Towey Law, PLLC can help you pursue additional compensation and determine the most effective way to move forward.