Most people are aware that if they are involved in an automobile accident with another vehicle they can bring a lawsuit against the driver and owner of the other vehicle for monetary damages. But what if the other vehicle has minimal insurance coverage that is inadequate to compensate you for your injuries? Or worse, what if the other vehicle had no insurance at all? Under these circumstances, you may be able to look to your own automobile insurance policy for coverage.
New York State Law requires that all automobile insurance policies include uninsured and underinsured motorist coverage. You may be involved in an automobile accident (whether you are a driver, passenger or pedestrian) with a motor vehicle that does not have insurance or a vehicle that has fled the accident scene. However, if you own an automobile or reside in a household with someone who owns an automobile -- you can still recover money to compensate you for your injuries from your own automobile insurance company. By law, every automobile insurance policy issued in New York State must have a provision for uninsured motorist benefits of at least twenty-five thousand dollars ($25,000) per person and fifty thousand dollars ($50,000) per accident for two or more people. You may increase the limits of your uninsured benefits to match the policy limits of your overall general liability coverage. For example, if you have automobile liability coverage of $100,000 per person, $300,000 per accident you may obtain uninsured motorist benefits to match that amount.
Example: You are crossing a local street and you are struck by an automobile that flees the scene. Badly injured, you are unable to get the license plate number of the offending vehicle. Fortunately, your automobile insurance policy contains uninsured motorist benefits of $100,000. Under these circumstances, you can collect up to $100,000 from your own insurance company. You should also remember to notify the police immediately if you are the victim of a hit and run accident.
Additionally, if you are involved in an automobile accident (whether you are a driver, passenger or pedestrian) with a motor vehicle that does not have adequate insurance, you may still be able to recover money from your own automobile insurance company. Whether or not you can bring a claim against your own policy and for how much depends on the limits of your underinsured motorist coverage. As with uninsured coverage, New York State requires that all automobile insurance policies must contain underinsured motorist coverage of at least $25,000 per person and $50,000 per accident for two or more people. Underinsured motorist benefits allow you to recover money from your own automobile insurance coverage if the offending vehicle had inadequate insurance coverage. One requirement for this type of claim is that your underinsured motorist benefits exceed the amount of the offending vehicle's automobile coverage.
Example: You are involved in an automobile accident with a vehicle that has a $25,000 insurance policy. The total amount of damages sustained by you is $100,000. Your automobile insurance coverage contains $100,000 of underinsured motorist benefits. After collecting the $25,000.00 from the offending vehicle you may collect an additional $75,000 from your own insurance policy for a total of $100,000. Please note, you may only collect underinsured motorist benefits from your own insurance policy if the amount of those benefits exceeds the amount of the offending vehicles liability coverage. If you had $25,000 in coverage, the same as the offending vehicle, you would not be able to make a claim of this type.
It is important to notify your insurance company in writing, immediately, of your intention to make a claim for uninsured or underinsured motorist benefits. Any delay in reporting your accident, in writing, to your insurance company may severely hinder or defeat your ability to obtain benefits. Failure to notify your own insurance carrier within the time limits required by a policy is the mistake we see most often made by people who are involved in this type of situation and have not spoken to a qualified attorney. If you believe you are eligible to make this type of claim you should schedule a consultation as soon as possible.
Friedman, Levy & Goldfarb, P.C. is also available to review your existing motor vehicle insurance policy with you to make sure you have the coverage you need. This type of coverage is one of the least understood parts of an automobile insurance policy. Planning ahead is the key to protecting yourself in the event this type of coverage becomes necessary. Contact us for a free consultation.