Auto Accident Settlement in New York: What It Covers and How It Works

If you were hurt in a car crash in New York, you will usually hear the word “settlement” pretty quickly. A settlement is the money paid to resolve your claim without a trial, typically in exchange for signing a release. The challenge is that New York’s no-fault system changes how (and when) you can recover, especially for pain and suffering.

Below is a clear, New York focused guide to what a real-world auto accident settlement involves and what you can do to improve your odds of a fair result.

What is an auto accident settlement?

An auto accident settlement is an agreement where an insurance company (or sometimes multiple insurers) pays money to resolve claims arising from the crash. A settlement can cover:

• Economic losses (medical bills, rehabilitation, lost income, out-of-pocket costs)

• Non-economic losses (pain and suffering, loss of enjoyment of life) if you qualify under New York law

• Future losses (ongoing treatment, future wage loss)

• In some cases: compensation through uninsured or underinsured motorist coverage, depending on the policies involved

  
  

Most cases settle. The question is not “will it settle,” but “will it settle for the right amount, with the right paperwork, at the right time.”

Step one in New York: understand no-fault

New York is a no-fault state, which means your own auto insurance typically pays certain benefits first, regardless of who caused the crash.

No-fault pays “basic economic loss” up to $50,000

New York Insurance Law defines “basic economic loss” as up to $50,000 per person for a combination of covered items like medical expenses and lost earnings (subject to statutory limits).

When can you pursue pain and suffering?

You generally can pursue non-economic damages (pain and suffering) against an at-fault driver if you sustain a “serious injury” as defined by New York Insurance Law. 

This is why many New York settlement discussions revolve around medical proof and whether injuries meet the serious injury threshold.

What counts as a “serious injury” in New York?

New York Insurance Law § 5102(d) defines “serious injury” by category (it is not just “it hurts a lot”). The categories include things like:

• death

• dismemberment

• significant disfigurement

• fracture

• loss of a fetus

• permanent loss of use of a body organ, member, function, or system

• permanent consequential limitation of use of a body organ or member

• significant limitation of use of a body function or system

• a medically determined injury that prevents you from performing substantially all of your usual activities for at least 90 of the first 180 days after the crash

If you are not in a serious injury category, your recovery may be limited largely to no-fault benefits and other available coverages.

What goes into a New York auto accident settlement value?

Insurance companies are usually looking at two buckets: liability (who is at fault and by how much) and damages (how serious the harm is and what it costs).

1) Liability and comparative fault

New York follows a comparative fault rule. If you are found partly at fault, you can still recover, but the amount can be reduced in proportion to your share of fault.

2) Medical proof and causation

Adjusters and defense attorneys look for objective support, consistency in treatment, and clear linkage between the crash and your symptoms. Gaps in treatment are often used to argue the injuries were not severe or not caused by the collision.

3) Economic damages (past and future)

These may include:

• ER and hospital bills

• follow-up care, PT, injections, surgery

• prescriptions and medical equipment

• lost wages and reduced earning capacity

• transportation and household help tied to the injury

  
  

4) Pain and suffering (if serious injury applies)

There is no universal “price per injury.” In New York, pain and suffering settlement values often depend on permanence, daily impact, and how convincingly the medical record supports the claimed limitations.

5) Insurance coverage limits (and SUM/UIM)

Sometimes the at-fault driver’s policy limits are the main constraint. If additional coverage applies (like Supplementary Uninsured/Underinsured Motorist coverage), that can materially change settlement potential. Blitz Law Group’s published results include recoveries involving SUM policies in auto accident cases.

A practical checklist: what to do to protect your settlement

If you want to give yourself the best shot at a fair settlement, focus on these:

• Get medical care immediately and follow through with referrals

• Report the crash and obtain the police report number

• Photograph everything: vehicles, plate numbers, injuries, roadway conditions, traffic signals, skid marks

• Document symptoms daily for the first few weeks (sleep, pain, mobility, headaches, work limits)

• Avoid recorded statements to the other insurer before getting legal advice

• Keep all receipts and wage proof (pay stubs, missed work letters)

• Do not post details on social media that could be misinterpreted

• Do not rush the first offer if you are still treating and the prognosis is unclear

How long do New York auto accident settlements take?

Every case is different, but most follow a pattern:

1. Initial treatment + no-fault claim (early weeks)

2. Investigation (liability, witnesses, video, vehicle damage, medical records)

3. Demand package (medical narrative, bills, wage proof, injury impact)

4. Negotiation (offers and counteroffers)

5. If needed, lawsuit (discovery, depositions, expert review)

6. Settlement conference, mediation, or trial preparation

Severe injuries, disputed fault, or multiple defendants usually take longer. A case can settle early, but settling too early can mean leaving money on the table if complications develop.

Deadlines that can make or break your claim in New York

Standard car accident injury deadline

In New York, many personal injury actions (including car accidents) generally have a three-year statute of limitations from the date of the accident.

Claims involving NYC or other public entities

If your crash involves a City vehicle, an MTA bus, a municipal contractor, or another public entity, you may face notice of claim requirements with much shorter timelines (often 90 days, depending on the entity and claim type).

If there is even a chance a public entity is involved, it is smart to get legal advice early so deadlines are not missed.

Should you accept the first settlement offer?

Often, the first offer is a starting point. Before accepting any settlement, make sure you understand:

• Are you settling only the bodily injury claim, or also property damage and no-fault reimbursement issues?

• Are future treatments likely (MRIs, injections, surgery)?

• Does the offer account for lost wages and future wage impact?

• Are you signing a release that ends your rights against additional parties?

Once you sign, it is usually final.

Why people hire Blitz Law Group for New York auto accident cases

Blitz Law Group handles auto accident matters in New York. Blitz Law Group Their published case results include significant recoveries tied to motor vehicle incidents, including an auto accident settlement sourced from a SUM policy and recoveries involving bus crashes.

If you want a second set of eyes on an offer or you are not sure whether your injuries qualify as “serious” under New York’s threshold, it can help to speak with a lawyer before negotiations lock in.

Call Blitz Law Group at +1(866) 670-0995 for a free consultation.

FAQs: New York auto accident settlements

Do I have to use my own insurance first in New York?

Usually yes. New York’s no-fault framework generally routes certain benefits through your own insurer first, up to the statutory “basic economic loss” amount.

Can I sue the other driver for pain and suffering?

Often, you can only establish a “serious injury” under New York Insurance Law.

What if the insurance company says I was partly at fault?

You may still recover, but your damages can be reduced in proportion to your share of fault under New York’s comparative fault rule.

How long do I have to file a lawsuit after a car accident in New York?

Many injury cases are generally subject to a three-year statute of limitations, but shorter deadlines can apply if a public entity is involved.