I. Introduction

In an effort to combat rising automobile insurance rates, in 1974 the New York Legislature passed sweeping changes to the Insurance Law designed to provide a basic level of economic coverage for New York drivers hurt in motor vehicle accidents while at the same time significantly curtailing the number of motor vehicle cases litigated in the State courts.

Known as the No-Fault law, the statutes create a dual system for compensating persons involved in motor vehicle accidents. Regardless of fault, every automobile insurance policy in New York provides for the payment of first-party benefits of up to $50,000 for “basic economic loss” for covered persons injured in car accidents, but bars the filing of lawsuits against the at-fault party to recover non-economic loss (i.e. pain and suffering) except for those who have suffered “serious injury” as defined by the statute. More…

As the economic downturn worsens, many people will likely be looking for new ways to cut corners in every facet of their lives to try to make ends meet. One of the areas already being impacted is automobile liability insurance coverage. This is the insurance that covers you when you are in an auto accident and are injured because of the fault of another driver. In some states like California and Arizona, as many as 20% of drivers have no insurance at all. In New York, the estimated percentage of drivers without insurance is lower – estimates range from 3 to 8%. We can expect that number to grow as those affected by the economic downturn opt to pay rent or buy food rather than pay their automobile insurance premiums.

New York Drivers Need to Protect Themselves By Making Sure They Have Enough “SUM Coverage”

Even before the latest economic crisis began, drivers in New York could choose to register a motor vehicle and buy only the minimum $25,000 of liability coverage required by law. In fact, for people who have had multiple accidents, $25,000 is frequently all the liability insurance a company will sell to them. These people are in what the insurance companies refer to as the “high risk pool.” Not coincidentally, the people who cause the most accidents and injure the most people on the road are well-represented in this high risk group. More…

Being involved in a serious motor vehicle accident is for most people one of the most traumatic experiences in their lives. Obviously, of first importance is taking care of any physical injuries you or your family members have suffered in the accident.

But once the initial injuries have been addressed, it is important to understand your rights, duties, and responsibilities under New York law because failure to do so could result in the loss of benefits under your insurance policy that you have paid premiums for and are entitled to receive. There is another document on this website that outlines in detail the New York No-Fault law; this article details the steps you need to take to protect yourself and your family. 

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