After a car accident in New York City, your daily routine can become unrecognizable. Doctor visits replace daily jogs. Insurance calls have become normal. Bills begin arriving shortly after the crash, and they don’t seem to stop coming in. Amidst crushing financial pressure and interruptions in your income, you have to ask: Can I sue, and if so, who pays for all of this harm I’ve suffered?
Typically, insurance companies are the parties that cover the cost of a car accident, whether through a claim or lawsuit. However, at-fault parties (such as a driver or their employer) could have personal financial liability when you sue after a car accident.
Before you sue, it’s often worth seeking compensation through one or more insurance claims. Claims don’t always produce the compensation an accident victim needs, though. That’s why The Perecman Firm is always willing to file suit and take cases to court should the claims process not produce the result our client deserves.
Do not wait to call The Perecman Firm or contact us online after your car accident in New York City.
Key Takeaways: Financial Liability in a Car Accident
- In most car accident lawsuits, insurance companies provide the compensation rather than individual drivers.
- A driver, employer, or business may face direct financial exposure only when insurance coverage is insufficient or unavailable.
- The majority of New York car accident cases resolve through settlement, whether or not the victim has their lawyer file a lawsuit.
- When a case settles, payment typically comes from one or more insurance policies.
- A car accident lawyer plays a critical role in identifying who pays, how much compensation is available, and how to recover that compensation.
- Do not wait to call The Perecman Firm to complete your free consultation about working with a New York City car accident attorney.
Understanding Sources of Compensation for Car Accidents in New York
In most cases, compensation is provided by an insurance company. Many people believe that the auto insurance claims process is straightforward, but anyone who has handled numerous claims can tell you otherwise.
For one, cases stemming from car accidents in New York City often involve multiple policies and multiple responsible parties. It can complicate things, and more than one of those responsible parties may refuse to pay the accident victim what they deserve.
Depending on how the crash occurred, payment may come from:
- The at-fault driver’s auto liability insurance (which is a legal requirement for drivers in New York)
- A commercial auto policy if the driver was working
- An employer’s insurance if the at-fault driver was driving in a professional capacity
- A rideshare company’s policy in Uber or Lyft accidents
- Multiple insurance policies, when more than one party shares fault
- Your own uninsured or underinsured motorist coverage in limited circumstances (though this is an elective form of coverage that your policy may not contain)
At The Perecman Firm, we begin every case by identifying all potential sources of compensation for an accident victim. The cost of serious injuries often exceeds the limits of a single insurance policy, so we must frequently evaluate secondary sources of compensation.
Filing a lawsuit is an option that’s always available when your New York City car accident attorney comes from our firm.
When Insurance Companies Must Pay for Car Accidents (and When Responsibility May Expand Beyond Insurers)
Insurance companies are required to cover losses caused by their insured drivers, but they do not simply pay because a claim is filed. Insurance companies tend to scrutinize liability, challenge medical treatment, and employ other measures to avoid substantial financial losses.
Insurance companies are typically obligated to pay when:
- Its policyholder causes or contributes to an accident
- The claim falls within the policy’s coverage terms
- Its liability is supported by evidence related to the crash
- The claimant can prove their injuries and covered losses
There are, however, situations where responsibility extends beyond insurance companies. It may happen when policy limits are less than the cost of losses, insurers deny claims, insurers refuse to offer all the compensation the claimant deserves, or the at-fault party lacks insurance coverage.
In those cases, liability may extend to those with legal liability for the crash. Liable parties may include one or more parties who contributed to the collision, including any at-fault driver
Each case involves a different array of liable parties. Your New York City car accident attorney from The Perecman Firm will review the evidence, analyze insurance policies, and identify all parties who can be named as defendants in an eventual lawsuit.
Why Most Car Accident Lawsuits Settle Before Trial
Even if we end up filing a lawsuit after your car accident, you shouldn’t brace for a trial. Although our attorneys are seasoned litigators who never shy away from court, the numbers suggest a settlement is the most likely outcome for your case.
Most New York car accident lawsuits do not end with a jury verdict. Most end with a negotiated settlement once the facts are fully developed and the insurer understands the risk of going to trial.
Settlement discussions typically become more earnest after:
- Medical treatment has revealed the long-term impact of injuries
- All evidence of fault and liability has been exchanged
- Experts have evaluated the victim’s injuries and future medical needs
- Insurers acknowledge the strength of the accident victim’s case
At The Perecman Firm, we prepare every case as if it will go to trial. Being trial-ready allows us to negotiate boldly, and it also motivates insurance companies to avoid facing us in court. This respect for our litigation prowess often leads insurance companies to offer our clients fair settlements, thereby avoiding the need for trial.
Who Pays When a Car Accident Case Settles?
When a car accident case settles, payment almost always comes from insurance carriers. Depending on the facts, settlement funds may come from:
- A single liability policy
- Multiple policies covering different defendants
- A combination of liability and underinsured motorist coverage
Once settlement funds are issued, they are placed into a secure escrow account. Case costs and legal fees are disclosed to the client, and any remaining recovery is distributed to the car accident victim. We go above and beyond to ensure you understand every step of this process and are prepared for life after the settlement.
What Happens After a Car Accident Victim Files a Lawsuit?
Filing a lawsuit triggers a structured process that requires both sides to exchange information and evidence. This process is called discovery, and it’s the stage that unfolds after you file a car accident lawsuit.
Discovery commonly includes:
- Exchange of accident reports, photographs, video footage, and other evidence directly related to the collision
- Review of medical records
- Depositions of drivers, witnesses, and certain other parties with insight into the accident’s cause and result
We use the discovery process as an opportunity to strengthen our client’s case. Our questioning is strategic, and we work to secure all available evidence to improve our negotiating position.
In a city where surveillance footage can be erased within days and witnesses are constantly moving, acting quickly during this phase can shape the outcome of the case.
If you are asked to give a deposition, we will prepare you thoroughly. You will know what to expect and how to answer questions honestly without making any missteps or feeling pressured to give answers you’re not comfortable with.
Circumstances That Can Make a Car Accident Lawsuit More Likely
Keep in mind that many car accident cases resolve through the claims process. Often, a lawsuit is not necessary. Even if insurance companies employ their usual strategic measures to try to reduce the claimant’s payout, an effective attorney may eventually convince liable insurers to provide a fair settlement.
Sometimes, though, insurers need a wake-up call. They need to be convinced to do what is right, and filing a lawsuit is sometimes the only way to compel insurers to take a claim seriously.
The likelihood of filing a car accident lawsuit may become greater when:
- Injuries are particularly severe (and possibly even disabling)
- Insurers dispute who is at fault for the accident
- Medical costs exceed insurance limits
- A commercial or government entity is involved
- Settlement offers fail to reflect the value of the case
Filing suit does not commit you to a trial. It means you are serious about securing the compensation you need and deserve.
Your Car Accident Lawyer’s Role Will Evolve If Your Case Moves Toward Trial
As a case progresses, our role naturally evolves. Early on, the focus is on investigation and negotiation. If a trial becomes more likely, preparing a court case becomes the priority.
Our trial prep process often involves:
- Organizing medical records to show how your injuries have changed over time
- Working with your treating physicians and our own medical experts to highlight your injuries, symptoms, and healthcare needs
- Preparing all accident-related evidence, which will be a central focus of our trial strategy
- Anticipating defense arguments and formulating our strategy for addressing them
- Preparing you for any role you will have within our trial strategy
Even as the trial approaches, securing a settlement remains a possibility. Insurers may engage in a game of chicken, waiting to see if we blink as the start of the trial approaches. We will stand firm in our settlement demands because we are not bluffing about our willingness to fight for car accident victims in court.
What Every Successful Car Accident Case Must Prove
Whether or not your case results in your filing a lawsuit or going to trial, you are unlikely to secure fair compensation unless your case is strong. A “strong” case shows:
- The at-fault party owed a duty of care (which means they had a duty to act as any reasonable person would)
- The at-fault party breached that duty through careless or intentionally harmful conduct
- The breach of the duty of care resulted in an accident
- The collision caused you identifiable harm
This case may look simple on paper, but reality is far more complicated. Proving these elements requires urgent evidence gathering, strategic arguments, documentation of damages, and the ability to synthesize a complex set of facts into a coherent narrative.
The Damages You May Be Entitled to Recover After a Car Crash in New York City
No two car accident victims have the same damages. We know this from years of experience representing many survivors. However, auto accident survivors often suffer similar types of damages, which include:
- Past and future medical expenses
- Rehabilitation-related expenses
- Lost income
- Diminished earning power
- Loss of professional opportunities
- Physical pain
- Emotional and psychological suffering
- Lost quality of life
- Out-of-pocket costs for vehicle repair or replacement
Some of our clients even have symptoms of post-traumatic stress disorder (PTSD), which is one of many life-changing conditions that can result from traffic accidents.
At The Perecman Firm, we focus on presenting damages in a way that reflects your experience, not an insurer’s assumptions about you.
FAQs: Car Accident Lawsuits and Who Pays
We pride ourselves on providing accident victims with the answers they seek, and some common questions we hear are:
Can more than one insurance policy apply to my case?
Yes. Many New York City cases involve multiple policies and defendants. It complicates the process of securing fair compensation, but our firm is built to handle the most complicated cases.
What if the at-fault driver has very little insurance?
In such cases, using underinsured motorist coverage or filing a lawsuit may help overcome the at-fault driver’s limited coverage.
How long does a car accident lawsuit take?
Your case’s timeline depends on many factors, from insurers’ willingness to negotiate in good faith to whether your case goes to trial. We will keep you updated throughout your case so you understand the likely timeframe for resolution.
Call for a Free Consultation with a Car Accident Attorney
New York’s statute of limitations for personal injury cases means you don’t have much time to pursue compensation after the crash. Retaining our firm as soon as possible can only benefit your case.
Our New York City car accident attorneys won’t require any upfront or out-of-pocket compensation from you. Our fee comes from the financial recoveries we obtain, and our fee structure is completely transparent.
Do not wait to call The Perecman Firm or contact us online. Let’s complete your free consultation and pair you with an attorney you can rely on to fight for your complete financial recovery.