Car accidents in New York often result in not only personal injuries but also significant property damage to vehicles. Whether it’s a minor fender bender or a serious collision, dealing with the financial aftermath of property damage can be stressful. Understanding how New York’s insurance laws address property damage and knowing your rights can help you navigate this process with confidence.
In this blog post, we’ll cover everything you need to know about paying for property damage after a car accident in New York, including insurance claims, determining fault, and the importance of supplemental uninsured and underinsured motorist (SUM/UM) coverage.
New York’s Insurance Laws and Property Damage
New York is a no-fault insurance state, meaning your Personal Injury Protection (PIP) insurance covers your medical expenses regardless of who caused the accident. However, PIP insurance does not cover property damage. When it comes to vehicle repairs or replacement, the at-fault driver’s insurance policy typically comes into play.
Key Terms to Understand
1. Liability Insurance
• New York law requires all drivers to carry liability insurance, which covers property damage and bodily injury caused to others. The minimum property damage liability coverage is $10,000 per accident (N.Y. Vehicle and Traffic Law § 319).
2. Collision Coverage
• Optional under New York law, collision coverage pays for damage to your own vehicle, regardless of who was at fault.
3. Comprehensive Coverage
• This optional coverage pays for non-collision-related damage, such as theft, vandalism, or weather-related incidents.
4. Supplemental Uninsured/Underinsured Motorist Coverage (SUM/UM)
• SUM/UM coverage provides additional protection if you are involved in an accident with a driver who has no insurance or insufficient insurance to cover your damages.
The Importance of Supplemental Uninsured and Underinsured Motorist (SUM/UM) Coverage
While New York requires drivers to carry liability insurance, many drivers fail to comply with the law, or their coverage may be insufficient to fully compensate you for property damage. This is where Supplemental Uninsured/Underinsured Motorist (SUM/UM) coverage becomes invaluable.
How SUM/UM Coverage Protects You
1. Uninsured Motorists
• If the at-fault driver lacks insurance, SUM coverage will step in to pay for your property damage. Without this protection, you may be left paying for repairs out of pocket.
2. Underinsured Motorists
• New York’s minimum liability insurance requirement of $10,000 for property damage is often insufficient to cover the cost of repairing or replacing a vehicle, especially if you drive a newer or luxury car. UM coverage helps fill the gap when the at-fault driver’s insurance is inadequate.
3. Hit-and-Run Accidents
• If you’re the victim of a hit-and-run accident and the responsible driver cannot be identified, your SUM/UM policy will cover your property damage.
Benefits of Choosing Higher Coverage Limits
The minimum coverage requirements in New York may not be enough to fully protect you after an accident. Opting for higher SUM/UM coverage limits ensures you’re not left with significant out-of-pocket expenses. For example, if the at-fault driver has $10,000 in property damage coverage but your repair costs are $20,000, SUM coverage can make up the $10,000 shortfall.
Why SUM/UM Coverage Is Critical
• Peace of Mind: Knowing you’re protected against uninsured or underinsured drivers reduces stress and financial risk.
• Comprehensive Protection: In addition to property damage, SUM/UM coverage often extends to medical expenses and lost wages in cases of personal injury.
Adding SUM/UM coverage to your policy is an affordable way to safeguard yourself against the financial consequences of accidents involving uninsured or underinsured drivers.
Steps to Take After a Car Accident in New York
If your vehicle has been damaged in an accident, taking the right steps immediately can protect your ability to recover compensation.
1. Document the Damage
• Take clear photos of your car from multiple angles, including close-ups of the damage.
2. Obtain the Police Report
• A police report can be critical evidence in determining fault and establishing the cause of the damage.
3. Exchange Information
• Get the contact, insurance, and vehicle information of the other driver(s) involved in the accident.
4. Notify Your Insurance Company
• Even if the other driver is at fault, you should report the accident to your insurer promptly to initiate the claims process.
5. Get a Repair Estimate
• Visit a reputable repair shop to obtain a written estimate of the repair costs.
Filing a Property Damage Claim
Against the At-Fault Driver’s Insurance
If the other driver was at fault, you can file a property damage claim with their insurance company. Here’s how it typically works:
1. Submit Evidence: Provide photos, repair estimates, and a copy of the police report.
2. Inspection: The insurance company may send an adjuster to inspect your vehicle.
3. Negotiation: You may need to negotiate if the insurer disputes the repair costs or attempts to offer a lower settlement.
Through Your Own Insurance
If you have collision or SUM/UM coverage, you can file a claim with your own insurer regardless of fault. Your insurer will pay for the repairs (minus your deductible) and may later seek reimbursement from the at-fault driver’s insurance company through subrogation.
Disputes Over Property Damage Claims
Unfortunately, property damage claims don’t always proceed smoothly. Common disputes include:
• Lowball Offers: Insurers may undervalue your vehicle or repair costs.
• Fault Disputes: The insurer may argue you were partially or fully at fault.
• Delays: Insurers may delay processing your claim, leaving you without a vehicle for weeks.
How to Handle Disputes
• Negotiate with Evidence: Provide detailed documentation, such as repair estimates, receipts, and expert opinions.
• Hire an Attorney: An experienced car accident attorney can advocate for you, ensuring you receive fair compensation.
• File a Complaint: If an insurer acts in bad faith, you can file a complaint with the New York State Department of Financial Services.
How Leitner Varughese Warywoda Can Help
Navigating property damage claims in New York can be overwhelming, especially if you’re dealing with insurance companies or fault disputes. At Leitner Varughese Warywoda, we are committed to helping accident victims secure the compensation they deserve.
Here’s how we can assist:
• Comprehensive Legal Support: We handle all aspects of your property damage claim, from gathering evidence to negotiating with insurers.
• Expert Advocacy: We understand New York’s insurance laws and can fight back against lowball offers and unfair tactics.
• Maximized Compensation: We strive to recover the full value of your vehicle and any other related expenses.
Conclusion: Protect Yourself with the Right Coverage
Paying for property damage after a car accident in New York can be a daunting process, but understanding your insurance options, including supplemental uninsured and underinsured motorist (SUM/UM) coverage, can provide critical financial protection. Whether you’re dealing with an uninsured driver, a hit-and-run, or disputes over repair costs, having the right coverage and legal support is essential.
If you’re struggling to recover compensation for property damage, contact the experienced attorneys at Leitner Varughese Warywoda today. Call us at 212-671-1110 or visit lvlawny.com to schedule a free consultation. Let us take the stress out of your property damage claim so you can focus on moving forward.
